When you have life insurance coverage, you can be much better assured those you love and care about will be able to move forward financially in case of the unexpected. For many people, being approved for the life insurance protection they need can be easy. It usually only takes completing an application for coverage, and taking a medical examination. 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 type of life insurance policy that does not require a medical examination 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, which will be tested 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 the death benefit will be paid out.
Simplified Issue Life Insurance
A simplified issue life insurance policy is one in which the applicant for coverage will not be 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 medical exam life insurance coverage, 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 will not require that the applicant for coverage take a medical exam. Final expense also referred to as funeral insurance or burial insurance coverage, is typically purchased by those who are between the age of 50 and 85, with the intention of having the death benefit proceeds used by loved ones for paying the cost of their funeral and other related 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 higher amount of 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 type of permanent insurance coverage that provides a set, guaranteed amount of death benefit protection, as well as a cash value component. The cash in the cash value portion of the policy is allowed to grow on a tax-deferred basis, meaning that there is no tax due on the gain unless or until the money is withdrawn. 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 life insurance policy is one that not only will not require a medical examination as a part of the underwriting process, but it also guarantees that the applicant will qualify for coverage, regardless of his or her health condition. As long as the premium is paid, these policies will remain in force. One criteria with a guaranteed issue policy is that the applicant will usually have to be within a certain age bracket to be approved.
It is important to note that, depending on the life insurance carrier, the amount of the 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 medical 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 life insurance coverage are often those who have certain health issues, these policies are typically priced higher than a comparable medically underwritten policy. Often, the amount of the death benefit that 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 want to consider a no exam life insurance option. First, for those who have certain health related issues, the qualification for a traditional life insurance policy may not be possible. But, with a no medical exam policy, the 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 provide the insurance company with 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.
How To Find The Best Premium Rates On All Types Of No Exam Life Insurance
When searching for no medical exam life insurance coverage, it is essential 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 to work with an independent life insurance broker or agency that has access to multiple life insurance carriers. That way, you will be able to directly compare – in an unbiased manner – the information that you require.
If you are ready to move forward and obtain additional details – including the comparison of premium quotes – on no medical exam insurance, we can help. We work with many of the top life insurance carriers in the marketplace, and we can assist you with obtaining all of the key details that you’ll need for making a well-informed buying decision. We can do so for you quickly and easily – without you having to meet in person with a life insurance agent. If you are ready to proceed, then all you need to do is just simply fill out the quote form on this page.
Should you find that you still have any additional questions regarding no exam life insurance coverage – or, even if you just have a question about life insurance in general – our experts will be happy to assist you. We can be reached directly via phone, toll-free, by dialing 864-332-4209.
We understand that the purchase of life insurance coverage may seem a bit overwhelming. There many different variables to consider – and you want to be sure that you are working with the right company for your needs. It may be particularly challenging if you have been turned down for life insurance coverage in the past. But, the good news is that you may have many different life insurance options that are still available to you.
We can work with you in finding them. So, contact us today – we’re here to help.