In most cases, with a traditional life insurance policy, you will be required to take a medical examination. During the exam, you will meet in person with a paramed professional that will usually ask you some additional medical questions, and collect a sample of blood and urine.
These samples are then sent off for analyzing to determine whether or not your health may make you too risky for the insurance company to approve for life insurance coverage.
There is, however, a life insurance policy that doesn’t require a health examination to be approved for protection.
These are known as no medical exam life insurance policies – and because you are not required to take an exam, you may have a better chance of qualifying for the coverage that you need.
What Is No Exam Life Insurance?
A no exam life insurance policy is a plan that has some underwriting but does not make the applicant go through a medical exam.
However, no exam insurance isn’t always straightforward. We’ve gathered some information on the different types of no medical life insurance available.
For instance, a simplified issue policy will still require that an applicant provides health-related information on the application for the coverage. In addition, the underwriters at the life insurance company may also review additional information, such as your driving history through the DMV (Department of Motor Vehicles), and/or information about you that is stored at the MIB (which was formerly known as the Medical Information Bureau).
There are also no medical exam policies that will have a graded death benefit. With this type of policy, only a portion of the face value is paid out if the insured dies within just the first year or two. (In some cases, the beneficiary may also receive a small amount of additional interest).
Yet another form of no exam life policy is the guaranteed issue policy. With this type of coverage, you can be approved for the policy, regardless of your current medical condition. In fact, as long as you pay the policy’s premium, your coverage will exist. You may, however, need to be a certain age to qualify.
Can You Get Term And Permanent No Exam Life Insurance Coverage?
Like most other, traditional, life insurance policies, no medical exam coverage may be either term or permanent. With a term policy, there is only death benefit protection that is offered – and there is no cash value built up within the plan.
Also, a term life insurance policy will also remain in force for a set period of time, such as ten years, 15 years, 20 years, or even in some cases, for 30 years. After the coverage has expired, though, the insured may need to re-qualify for the insurance, based on his or her then-current age. Because of this, even though term life insurance policies will often start out with a lower premium than a comparable permanent policy, at a higher age, the insured will typically have to pay much more.
A permanent life insurance is great because in addition to the death benefit, it also has a cash value benefit built in. The funds that are in the policy’s cash value component are allowed to grow tax-deferred, meaning that there will be no tax due on the gain unless the policyholder decides to withdraw the funds.
The money that is inside of the permanent life insurance policy’s cash value may be withdrawn or borrowed for any reason that the policyholder sees fit – including the payoff of debts, the supplementing of his or her retirement income, and/or even for taking a vacation.
Many permanent no exam life insurance policies are a type of coverage that is known as whole life insurance. With whole life insurance, the amount of the policy’s death benefit is guaranteed not to decrease, while at the same time, the amount of premium charged is usually locked in throughout the remainder of the lifetime of the policyholder – even as he or she ages, and regardless of any type of adverse health issue that they may have.
With a permanent no exam life insurance policy, you don’t have to worry about your coverage running out – even if you have owned the policy for some years. Once you have qualified, the insurance company cannot cancel your coverage – other than for the non-payment of the policy’s premiums.
Knowing that you have life insurance protection that will remain in force can provide you – and your loved ones – with a great deal of peace of mind, knowing that final expenses, debts, and/or other expenses can be taken care of, without your survivors having to dip into their savings or put various costs on credit.
Factors To Consider When Purchasing A Permanent No Exam Life Insurance Policy
When purchasing a permanent no exam life insurance policy, consider these factors before moving forward. First, because the applicants for no exam coverage are often considered to be riskier to the insurance company, you will be charged a higher rate than you normally would.
In addition, your chances of getting one policy that covers everything you need is slim. For instance, there are some life insurance carriers that will only offer up to $100,000 (or less). However, in researching no exam life insurance offerings, you may also find that there are some insurance providers that will offer up to $500,000 in death benefit coverage.
With that, it is also important to compare the benefits and the premium quotes of several different permanent no exam life insurance policies before making your purchase. This is because, just like with most any other product or service that you may buy, the price that is charged for life insurance coverage can often differ – sometimes quite substantially – from one insurance carrier to another, even for the same type and amount of policy.
Who Should Consider No Exam Life Insurance?
Although a no exam policy can offer many advantages, these types of policies may not be ideal for everyone. Those who may wish to consider any no exam coverage would include individuals who cannot otherwise qualify for a medically underwritten policy due to adverse health issues.
Those who may like to consider a permanent no exam life insurance policy, in particular, are those who do not want their coverage to run out. A permanent policy will typically allow you to keep your coverage indefinitely – provided that the premium is paid.
A permanent no exam policy can also be a good choice for those who do not want their life insurance premiums to go up in the future. So, if you are on a fixed budget, knowing that your life insurance premium will remain the same can allow you to plan for – and to keep – this important protection as a part of your overall financial planning.