Many people choose not to get a life insurance policy for a variety of reasons. Some consider life insurance too expensive, don’t have time to purchase a policy, or suffer from a health issue that would normally be reason for disapproval. Recent statistics show that over 40 percent of the population is either uninsured or doesn’t have enough coverage. If you have been planning to get life insurance, but one of the reasons above is stopping you, you should know that there are many types of life insurance out there, and you have a big chance of finding one that you can qualify for. You might think that you don’t need life insurance or that your application will not be approved because you have a pre-existing medical condition, but you might be pleasantly surprised once you start doing some research and start shopping around for a life insurance policy.
For those who don’t want to get a medical exam because they suffer from an illness that might endanger their approval chances or for those who simply don’t have the time and patience to go through a series of medical tests, there is good news. A large number of insurance companies are offering no exam life insurance policies. This type of insurance is different from traditional life insurance and might be the answer for those who want life insurance but don’t want to go through the traditional process of getting it.
What is No Exam Life Insurance?
Similar to traditional forms of life insurance, like whole and term life insurance, no exam life insurance is a type of insurance that pays a death benefit to the beneficiaries when the person who took out the policy dies. The main difference between no exam life insurance and other types of life insurance is that a no exam life insurance doesn’t require you to complete a medical exam in order to be approved for coverage. Both healthy people and those with pre-existing medical conditions can qualify for life insurance.
Another difference between this type of coverage and more traditional types of insurance is that no exam life insurance has a very fast approval process. Usually, getting approved for no exam life insurance takes a few days, but some insurance companies can get you approved in as little as 24 hours. This makes it ideal for those who need life insurance coverage right away, especially since the application process for whole and term life insurance takes much longer, sometimes up to 8 weeks.
However, because the insurance companies who offer no exam life insurance don’t require you to get a medical exam, they face more risk, so no exam life insurance coverage is more expensive than whole and term life insurance coverage.
Types of No Exam Life Insurance
There are 3 types of life insurance for people who want to avoid completing a medical examination. Some of the features of these types of no exam life insurance make them different from one another, but they all have a very important aspect in common: none of them require a medical exam.
- Simplified issue life insurance. This type of no exam life insurance can be acquired by simply answering a few yes or no questions on a form that will be reviewed by the insurer. Along with this form, the insuring company will also review the applicant’s medical history and prescription records. Based on these documents, the insurer will decide if the no exam life insurance application is approved or denied. Simplified issue life insurance can sometimes be obtained after speaking to an insurance agent on the phone or online, and the coverage starts shortly after the application is submitted.
- Guaranteed issue life insurance. The most popular form of no exam life insurance, guaranteed issue life insurance doesn’t require the applicants to answer any questions regarding their health. Almost anyone can get this type of insurance. The coverage starts right away but, because the insurance company takes on a lot of risk by insuring someone without even asking a few questions about their health, the cost of guaranteed life insurance will most likely be higher.
- Graded benefit life insurance. With this insurance plan, the applicant will be asked a few basic questions about his or her health. The difference between this type of coverage and the other two type of no exam life insurance is that graded benefit life insurance doesn’t give out the full death benefit if you pass away in the first few years after getting the policy.
All types of life insurance with no medical exam will cost more than traditional life insurance policies. Qualifying for a traditional life insurance requires that you go through a thorough medical exam, which will determine the state of your health and life expectancy. The insurance company uses the results of the medical exam to determine how big of a risk you are, and adjust your premiums accordingly or, in some cases, deny your application. By not requiring medical examination prior to giving out an insurance policy, companies that offer no exam life insurance expose themselves to a greater risk of losing money.
No exam life insurance is great for people who can’t otherwise qualify for traditional life insurance, for those who don’t want to go through a medical exam, or for those who are in a hurry to get life insurance. If you don’t fall into one of these categories, traditional forms of insurance will be generally more beneficial to you. But if you have come to the conclusion that a no exam life insurance is right for you, getting a no exam life insurance policy is a legitimate way of protecting yourself and your loved ones.