Life Insurance With No Medical Exam: How Do You Get One?
Going through a medical exam can be one of the most stressful parts of applying for life insurance – especially if you have a preexisting health condition. Thankfully, there are several types of no-medical exam life insurance policies out there. In this guide, we'll outline how to buy a life insurance policy that meets your needs while saving you a trip to the doctor.
Can You Get Life Insurance Without A Medical Exam?
Before issuing a policy, life insurance companies typically review your medical history and financial background. This review process, called underwriting, can help the company determine your life expectancy and assess the risk of granting you with coverage.
If you refuse to take a medical exam, you limit the information that the life insurance company can use to determine how risky it is to grant you a policy. As a result, they will typically charge higher premiums in exchange for providing you with insurance coverage.
Still, it's understandable that some people would rather skip the medical exam. They may be anxious about getting a physical exam or are uncomfortable getting their blood drawn. Others have medical conditions that will raise their premiums or may even prevent them from getting life insurance protection.
If this sounds like you, don't worry. A lot of companies offer insurance products that are designed for people who don't want to subject themselves to medical exams.
Benefits Of Life Insurance With No Medical Exam
No-medical exam life insurance comes with several benefits, such as the following:
Guaranteed acceptance: People who have a serious illness may have some difficulty qualifying for traditional term life or whole life insurance. By buying no-medical exam life insurance, they can get the coverage they need without letting their health condition stop them.
Fast approval: Since the underwriting process is fairly simple for life insurance policies with no medical exam, people can apply online and get approved within a few days. If you need a policy issued to you quickly, this is the best option for you.
Avoid a trip to the doctor: During a medical exam, a nurse or technician will check your height, weight, and blood pressure. You'll also be asked to submit blood and urine samples. If you're uncomfortable doing any of these, no-medical exam insurance can be a wise choice.
Types Of Life Insurance Without A Medical Exam
There are several types of life insurance policies that won't require a medical exam. Some of them will accept you regardless of your pre-existing medical conditions, while there are others that will require you to be in relatively good health.
Simplified Issue Life Insurance
Simplified issue life insurance plans have a simple application process. You'll only need to fill out an information sheet with your personal data and send it to the insurance company. Often, this entire process can be done online.
Note that you'll have to answer a series of health questions when applying for this policy. Life insurance companies will want to know about your recent hospitalizations, your height and weight, and your drug and tobacco usage.
With that said, some people with a complicated medical history may not qualify for this type of insurance. Sometimes, insurance firms will even check your motor vehicle record, criminal court record, and credit score, then deny you coverage based on the information they gather.
The advantage of simplified issue policies is that it comes with lower premium rates and higher coverage. If you're in relatively good health and want your family to receive a sizeable death benefit when you pass away, getting this no-exam policy is a wise choice.
Guaranteed Issue Life Insurance
Guaranteed issue life insurance is the best option for people with chronic illnesses. Regardless of your current state of health, you'll be given life insurance coverage without a medical examination or even without answering health questions.
The catch is that most guaranteed issue policies are a little more expensive compared to simplified issue insurance. Additionally, some guaranteed issue life insurance policies come with a waiting period of two to three years. Your dependents won't have the right to claim a death benefit if you pass away within the waiting period.
Most companies offer life insurance as part of their employee benefits package. Since these policies cover a "group" and not certain individuals, your personal health won't be much of an issue. Plus, the employer pays the premiums.
The downside is that the coverage amount for group term life insurance from employers usually isn't enough to leave your family with a financial safety net once you pass away. Think of group life insurance as a supplemental life insurance policy that you can add to your individual life insurance.
Accidental Death Insurance
Accidental death and dismemberment insurance (AD&D) is a type of policy that offers a lump sum payout to beneficiaries in case the insured person passes away or is injured in an accident.
If you've been denied an insurance policy due to health reasons, getting AD&D is the best backup option. It will still leave your family with some form of financial protection in case you get involved in an accident in the future.
Term Life Policy With A Term Life Conversion Rider
A term life policy is a type of insurance that's issued to adults for a certain term period (from 1 year to 30 years). When the term period ends, your insurance coverage will expire.
Some types of term life policies come with a "term life insurance conversion rider." This is an add-on benefit that allows you to convert your term life insurance into a whole life policy without having to go through a medical exam.
This is one of the best riders to get since people typically develop serious health issues later in life that would otherwise prevent them from getting a simplified issue or fully underwritten insurance.
How Much Coverage Do You Need?
Life insurance is a risk management vehicle that pays out a death benefit if the insured person dies within the coverage period. Depending on the amount of your coverage, the money that your loved ones can receive from the insurance company can be enough to replace your income for the next several years.
Here's where it gets a little tricky: death benefits for life insurance policies that don't require an exam are lower than traditional insurance. At most, you'll only find policies that pay a benefit of $500,000 or less. Some forms of guaranteed-issue insurance also max out at $50,000.
Still, if your children are already financially independent and won't need the death benefit to pay for their living expenses, you won't need very high coverage amounts. All you need is a policy with a payout large enough to cover your existing debts, household expenses for the next few months, and your funeral.
How To Choose The Right Life Policy
The best insurance policy for you is the one that fits your needs and budget. In this section, let's talk about how to choose the best no-exam life insurance plan for you.
For Young And Healthy Individuals
If you're young and healthy, it's best to apply for a simplified issue policy. Simplified issue life insurance applications may require you to disclose health information, but in exchange, you'll get higher coverage for lower premium rates.
When disclosing your health information, be sure to be as honest as possible since your beneficiaries may not be able to claim the death benefit if the insurance company finds that you failed to declare some of your health conditions.
For Individuals With Serious Health Conditions
Individuals who are above 60 years old or those who have chronic illnesses can opt to buy guaranteed-issue insurance. Adults with a complicated family history, such as those whose parents or siblings passed away from cancer or heart disease before the age of 50, may also benefit from getting this policy.
Since the cost of premiums may be a little high, try to get a quote from as many companies as possible. It's best to work with an independent insurance agent so that they can help you compare quotes and find the insurance company that offers the best price.
Keep in mind that risk assessments also vary depending on the company. So, some insurers may disqualify you from getting a simplified issue policy, but other companies may be willing to offer you a chance. Working with an independent agent will help you find a company that offers you a policy that fits your needs and budget.
For Individuals With A Risky Occupation
Individuals with a risky occupation, like those working in aviation or trucking, may benefit from getting accidental death and dismemberment insurance. They won't need to undergo a medical exam, but they'll get additional insurance protection in case they run into an accident while at work. Individuals who travel often may also consider this option.
Applying for no-exam life insurance without taking a medical exam is the best option for those with chronic health conditions. While coverage amounts won't be the same as those from fully underwritten insurance, you'll still gain peace of mind knowing that your loved ones' immediate financial needs will be covered to some extent.
If you have additional questions about getting an insurance policy without taking a medical exam, feel free to reach out to contact us at Wesley LLC. We'll help you find the best policy to suit your needs.