There are not many investments that leave at peace like having life insurance does. For some people, it is a simple process to just get a term or whole life plan and be done. However, there are some folks who will not qualify for a traditional plan, so they have to look at no exam life policies. But what type of no exam life insurance do you actually need?
There are several different types, and each provides a specific benefit to you.
For others, though, who may have certain health-related issues, qualifying for the life insurance that you want or need may not be quite as simple. For these individuals, however, there is still hope of obtaining coverage through a no medical exam policy.
What Is No Exam Life Insurance?
No exam life insurance is a form of life insurance not requiring a medical exam as a component of the approval procedure. Typically, most traditionally underwritten policies will require that the applicant meet with a paramedical professional and answer health questions that are in addition to those on the initial application for coverage.
In addition, the applicant will also need to provide the paramedical professional, or “paramed,” with a blood and urine sample, used for testing for certain types of health issues that could make them a potentially risky individual for the insurance company to take on.
Are There Different Types Of No Exam Life Insurance Coverage?
There are several different types of no exam life insurance coverage, and because of that, it is important to have a good understanding of what each of these does – and does not – offer. This is because you don’t want your beneficiary (or beneficiaries) to be surprised when the time comes for paying off debts and/or using the anticipated proceeds for various needs.
The types of no exam life insurance policies can include the following:
Graded Death Benefit Life Insurance
A graded death benefit life insurance policy will pay out only a certain percentage of the stated policy death benefit amount if the insured dies within the first 1 to 3 years after initially purchasing the policy. If, however, the insured dies after the first 1 to 3 years, then typically the entire amount of death benefit is paid out.
Simplified Issue Life Insurance
A simplified issue life insurance policy is one in which the applicant is not required to undergo a medical examination. However, with these policies, there are health questions that are asked on the application – and the application will otherwise go through underwriting to determine whether or not the applicant will qualify for the policy.
Unlike many of the other types of no exam life insurance, the amount of death benefit that can be purchased on a simplified issue policy can usually be as high as $400,000.
Level Final Expense Life Insurance
Most final expense life insurance policies do not require a health exam. Final expense also referred to as funeral insurance or burial insurance coverage, is typically purchased by anyone who is 50 thru 85, with the intention of having the death benefit proceeds used by loved ones for paying the cost of their funeral and final expenses. The death benefit amount on a final expense life insurance policy is typically somewhere between $5,000 and $25,000 – which in most cases is enough to pay for one’s final expenses. There are, however, some insurance carriers that will provide a greater death benefit on these level final expense life insurance plans.
A level final expense life insurance policy consists of a whole life insurance plan. Whole life is a form of permanent insurance coverage that provides a set, guaranteed amount of death benefit protection, and cash value component. Also, these policies will typically offer a premium that remains level and locked in – regardless of the insured’s increasing age, and whether or not the insured contracts an adverse health condition in the future.
Guaranteed Issue Life Insurance
A guaranteed issue policy is one that not only will not require a medical examination during the underwriting process, but it also guarantees that the applicant will qualify for coverage, regardless of health condition. As long as premiums are paid, these policies will remain in force. One criterion with a guaranteed issue policy is that the applicant will usually have to be a certain age for approval.
It is important to note that, depending on the life insurance carrier, the total death benefit that can be purchased via a guaranteed issue life insurance policy is often capped at $10,000 to $25,000.
Why is No Medical Exam Insurance Different from Traditionally Underwritten Policies?
A no health exam life insurance policy, as the name suggests, differs from most traditional life insurance in that there is no requirement for the applicant to meet with a paramedical professional and provide a blood and a urine sample.
Because those who apply for no medical exam coverage are typically those who have certain health issues, these policies are typically priced higher than a comparable medically underwritten policy. Often, the death benefit can be purchased is also in the lower dollar ranges.
However, because these policies do not usually require reviewing medical records and waiting for medical test results, they can often be approved and issued much more quickly than a traditional, medically underwritten policy. This means that an applicant can have his or her protection in place within just a few days of applying for it – and in some cases, they may even have their policy issued the very same day.
Who Should Consider A No Exam Life Insurance Option?
There are several different categories of individuals who may consider the no exam life option.
First, for those who have certain health related issues, the qualification for a traditional life insurance policy may not be possible. But, with the no exam policy, chances for policy approval may be raised considerably.
In addition to those who have health issues, another type of person who may wish to consider no medical exam coverage is someone who has a fear of needles. In some cases, a person may have such a fear of needles and / or other medical related procedures, that it is not possible to give the company a blood sample. But, applying for a no medical exam policy can help to alleviate that fear, yet still proceed with an application for life insurance protection.
Finding The Best Rates On All Types Of No Exam Life Insurance
When searching for no medical exam life insurance, you need to have a good understanding of which type of policy you are considering. It is also wise to ensure that you have thoroughly compared several different policies, benefits, and premium prices before making your final purchase decision.
The best way to go about this is seeking out an insurance agency that is independent of a major brand. Meaning, they can give you quotes from more than just one insurance company.
Are you ready to obtain additional details – including the comparison of premium quotes – on no medical exam insurance, we can help. We represent most of the higher rated companies in the business, and our staff will efficiently provide you with information and quotes so that you’ll be ready to make an informed purchase. The great thing about technology is our agents can assist you in a matter of minutes as you sit at home in your pajamas. To give our agents a heads up, please complete the form on the left, and then they’ll get right to work!
However, if you have a few minutes, we’d love for you to give us a call. Especially if there are topics you have questions about that we didn’t cover in this post. Our lines are always open, just dial 864-332-4209.
Spending money on investments is never an easy thing, especially since the return usually takes a while to get back to you. Life insurance is even more difficult because the insured normally won’t see the benefit. There are many decisions to make before you sign on the dotted line, don’t let the process become more confusing and then throw in the towel. If a previous application has been declined in the past, there are still some avenues we can show you to get that life insurance protection you want.