It is almost impossible to not be overwhelmed when searching for life insurance as there are a lot of insurance policies to pick from and just to give you a heads up life insurance can be pricey. Most times the kind of life insurance you need may have available quotes online whilst some would not but you must go for what suits you most. When finally find a policy that resonates with you and you’re ready to buy, you might find long applications, life insurance medical exams, and lengthy wait times for approval.
Well glad to say some amazing companies have worked tirelessly to eliminate those bulky medical exams hence making it easier for you to access your desired life insurance policy, some companies have created no-exam life insurance policies that are competitively priced and easy to get.
However, this post is curated to enlighten you about what No-Exam Life Insurance is and also help you find the best company with the best policy offers.
What Is No-Exam Life Insurance?
No-exam life insurance is self-explanatory but for record’s sake, we would describe No-Exam Life Insurance as simply life insurance that does not require any exam.
The typical medical exam required by life insurance policies includes a variety of health and medical questions, followed by a paramedical professional recording information like your blood pressure, weight, and height. You will likely be asked to provide blood and urine samples for testing. Depending on your age and health, you may be required to do some additional testing, such as an electrocardiogram (EKG).
However no-exam life insurance is best for life insurance seekers who are in excellent health and who are younger (typically 50s and under). If your health or age disqualifies you from a no-exam policy, that doesn’t necessarily mean the company will turn you away. Instead, they might offer to do a more traditional underwriting process with a life insurance medical exam.
Types of No-Exam Life Insurance
No-Exam Term Life Insurance
Some term life policies are no-exam policies. Term life insurance policies have a level term duration during which prices remain the same. Choices of term duration lengths generally last for a span of about 5 to 30 years. After the level term ends, you can typically renew yearly at a much higher rate.
No-Exam Whole Life Insurance
Some insurance companies offer whole life insurance without medical exams. Whole life insurance as it states is a form of permanent life insurance offered by select insurance companies. Policies build cash value at a fixed rate and offer level premiums and a fixed death benefit. Whole life insurance is one of the most expensive types of life insurance, and policies offered without medical exams are even more expensive.
No-Exam Universal Life Insurance
Universal life insurance is sometimes offered with a no-exam option. Universal life is a type of permanent insurance with flexible premiums and flexible death benefits.
No-Exam Group Life Insurance
Group life insurance requires no medical exam. It is a contract where an employer owns a life insurance policy that also provides coverage to its employees, usually at no cost to the employee for a basic coverage amount. Unless your policy is portable, you will lose coverage if you leave your job.
Different Kinds of Life Insurance That Skip Medical Exams
Insurance firms employ an evaluation procedure, termed underwriting, to assess insurance applications and determine acceptance and rates. Certain life insurance underwriting methods are expedited due to limited data on the applicant or electronic data collection from external entities.
Quick-Decision Life Insurance
This approach involves electronic data collection about applicants. Using algorithms, the insurer promptly decides on your life insurance rate.
Data collected might encompass medical prescriptions, driving records, criminal backgrounds, and risk evaluations from external entities.
Such policies promise the ease of skipping a medical examination and can have rates comparable to those that mandate one.
Streamlined Life Insurance
This is an efficient underwriting procedure. Applicants answer a set of health and lifestyle inquiries, bypassing medical checks. Your responses might rule out eligibility. The insurance company might use additional external data to gather more about you. As these policies are based on limited data, they generally cost more than the comprehensive ones.
Assured Approval of Life Insurance
These policies provide coverage without any medical evaluations or inquiries. Rejections are non-existent. Designed primarily for those with health concerns, they typically provide nominal coverage. The focus might be to cater to burial costs or to bequeath a modest legacy. The policies might have reduced payout periods initially.
Such policies are typically the priciest because the insurer lacks any health data about the applicant.
Is Skipping a Medical Exam in Life Insurance Suitable for You?
For healthy non-smokers, such a policy can be an expedient option for swift and competitive coverage. It’s also apt for the younger demographic seeking immediate coverage with minimal formalities.
“Acceptance for such policies is more likely for those who furnish precise initial data, aim for moderate coverage amounts, and have minimal health concerns,” comments Fred Tavan, senior rate determiner at Legal & General America.
Selecting the Ideal Medical-Exam-Free Life Insurance
Determine Your Required Coverage
Ensure you’re aware of your coverage requirement before seeking quotes. Solely relying on a no-exam policy might not offer adequate coverage.
Understand Your Odds Pre-Application
While the idea of a swift application is enticing, it’s crucial to gauge your acceptance odds. A rejection is recorded and might impact future attempts. Health concerns might necessitate a more conventional application approach.
Prioritize More than Just Price
While cost-effectiveness is vital, delve deeper. Look for conversion options from term to permanent insurance or provisions for early benefits in terminal illness cases.
Always Be Honest
Accuracy is paramount when applying. “Detailed and accurate responses can simplify the process and aid in precise underwriting decisions,” suggests Tavan. Deliberate discrepancies can lead to rejections or claim refusals post-demise. Insurers possess advanced verification tools.
Plan for Potential Rejections
A health-related rejection for a no-exam policy doesn’t end your search. Traditional underwriting or seeking experienced insurance agents familiar with your health conditions can be alternative routes.
Other Options for No-Exam Life Insurance
Comprehensively Assessed Life Insurance
This type typically has a longer approval wait due to the reliance on medical examination results and doctor records. An exhaustive health and personal history questionnaire is also part of the process. Yet, this could be the most affordable route even with health hiccups.