There are many types of people who apply for life insurance. Often, people can easily become approved. For others – especially for those who may have an adverse health condition – it may not be quite so easy.
When purchasing life insurance, an applicant will typically be asked to complete the questions on the application for coverage. Also, with most “traditionally underwritten” life insurance policies, the applicant will also be required to undergo a medical examination. This usually entails giving a blood and urine sample that are reviewed by the life insurance company for various health conditions that could pose a risk of a potential claim to the insurer.
Unfortunately for some applicants, due to an adverse health condition that is discovered through the medical exam, life insurance is either denied, or the cost of the premium charged is higher than that of a Standard life insurance policy. If you have had a recent surgery such as gastric bypass and want to know if you can qualify for term life insurance, we can help you in finding the coverage you deserve.
How Does No Medical Exam Life Insurance Work?
As its name implies, a no medical exam life insurance policy is a policy that does not require an applicant to undergo a medical examination to qualify for life insurance coverage. This means that there is no requirement to provide a blood or urine sample prior to being approved – and because there is no lengthy underwriting requirements, these policies can often be approved within days, or sooner, rather than the weeks or months that it can typically take for traditionally underwritten policies to obtain approval.
A no exam policy can be either term or permanent coverage. This means that the policy may consist of death benefit only coverage, or it can include both death benefit coverage along with a cash value component.
If the policy is a term life insurance plan, it may stay in force for a set number of years such as 10, 20, or even 30 years, after which, the policy will expire. At that time, if the insured wishes to continue being covered, he or she will typically need to re-apply for life insurance coverage at their then-current age.
With a permanent life insurance policy, there is no expiration or time limit on the coverage. The cash value that builds within the policy is allowed to grow on a tax deferred basis. This means that there is no tax due on the gain of these funds until the time they are withdrawn – allowing the funds to grow and compound on an exponential basis over time.
Regardless of whether the policyholder chooses to go with a term or a permanent plan, a no physical life insurance policy will generally require a higher amount of premium in comparison to a comparable policy that requires traditional underwriting. This is because the life insurance company is taking on a higher amount of risk with the insured in terms of a potential future claim. However, in some cases, due to a health condition, no exam life insurance may be the only type of coverage that is available to an individual.
How Much Coverage Can You Buy with a No Medical Exam Policy?
The amount of life insurance that can be purchased with a this type of life insurance policy will vary from one insurance company to another. In some cases, the amount of death benefit may be small and will range from between $10,000 and $25,000, whereas with other insurers the amount may go as high as $500,000 or higher.
The amount of coverage that can be obtained will oftentimes be determined, based on the insured’s age, as well as the type of life insurance that he or she is purchasing (i.e., term or permanent coverage).
Why Consider a No Exam Plan?
There are a number of reasons why people may consider purchasing a no medical exam life insurance policy. Often, these policies are a good option for seniors. This is because many seniors may have adverse health conditions that can preclude them from obtaining any other type of life insurance coverage.
While a senior may not require life insurance for paying future college expenses for a child or grandchild, and they may not require income replacement for a spouse or young children, they may need life insurance as a means for paying final expenses, medical debts, and even high estate tax liabilities that can be due upon death. This type of life insurance policy could be the only option available to a senior – especially if he or she has tried applying through the traditional underwriting methods and been turned down for medical reasons.
No medical exam life insurance policies are also much easier – and faster – to underwrite than traditionally underwritten policies, too. First, their application process is very simple. Often, there are just a few easy questions for the applicant to answer. This can make the process very easy and fast to complete.
Also, because there is no medical underwriting to deal with, the approval time for a no exam plan is very rapid in most cases. Often, it only takes a few days as versus weeks – or months – as it can for traditional plans. Because of this, a person can be covered very quickly after they have applied for their coverage.
If an individual has a pre-existing health condition and they already know that they are likely to be turned down by going the traditional route for coverage, they can save themselves a great deal of time and frustration by simply applying for a no medical exam life insurance policy up front.
Some Considerations When Purchasing Coverage
Although there are many advantages to applying for no physical life insurance coverage, there are some things that should also be considered prior to moving forward with this type of policy.
First, because these plans usually cover more risky applicants, the premiums that are charged are typically much higher than those of a comparable traditionally underwritten plan. So, with that in mind, if there is the chance that an applicant may qualify by going through underwriting, then it may be worthwhile to try that first, as it could save a considerable amount of premium dollars – especially over time.
Also, there are some policies that will not pay out the full amount of death benefit until the policy has been in force for a certain number of years. Therefore, if the insured passes away within the first couple of years of policy ownership, the beneficiary may only receive a refund of the paid in premiums rather than the full death benefit amount as proceeds.
How and Where to Find the Best Life Insurance Policy
In order to find the best no exam life insurance policy for your specific needs, it is typically best to work with an agency that has access to more than just one single insurance carrier. This way, you can compare multiple policies and premium quotes to determine which works best for your specific needs, as well as for your budget.
When you are ready to begin looking for your policy, we can help. We work with many of the best no medical exam insurers in the marketplace today, and we can get you all of the important information that you need to make an informed buying decision. If you’re ready to begin the purchase process, start by filling out the form on this page.
Should you have any questions along the way, we are happy to help. We can be reached directly, toll-free, at 888-229-7522. Our experts will walk you through the quote and purchase process to ensure that you are comfortable with your decision. So when you’re ready to move forward, contact us. We’re here to help.