If you’ve been denied life insurance coverage because of poor health, a disease, chronic condition, or a risky job, you may think that you can’t receive adequate or affordable life insurance, but that couldn’t be further from the truth. Regardless of your health or job, there are several options that you can choose from, one of those options is a no medical exam life insurance policy.
Life Insurance no medical exam is a type of life insurance that is sold on a substandard basis to everyone. All applicants are assumed substandard in risk because the insurance company does not require medical records and lab work to approve the insured. Typically, no medical exam life insurance applications only requires a health questionnaire to be answered all negative. There are plenty of advantages and disadvantages to buying life insurance no medical exam, such as the ease in which an application can be processed and approved.
Easy and Quick!
Life Insurance with no medical exam can be purchased and placed into force sometimes within 48 hrs. While underwritten life insurance takes one to two months to qualify and place into force. The fully underwritten application requires medical records and lab work and this process takes time. If you are in a hurry for protection then buying life insurance with no medical exam might be right for you. There are many who feel they need to go this route such as those looking for the cheapest life insurance for smokers, but there are other options out there to look into. A good example is most small business SBA loans requires the business owner to buy coverage to protect the bank if the owner were to die prematurely. Instead of having to wait months to secure the loan, you’ll be able to receive life insurance in a matter of days so you can continue the loan process.
Rates can be more affordable with an exam.
Life Insurance with no medical exam assumes the insured to be below average in health and therefore pigeon holes all applicants into a substandard risk. Consumers who go to the doctor annually and follow their doctor’s orders usually can qualify for more affordable rates for life insurance by completing a physical and authorizing the insurance company to review medical records. If the need is not urgent than waiting on an underwritten application might provide substantial savings.
Term Conversion Rights.
Life insurance that requires underwriting provides a clear picture of the insureds health to the underwriters and therefore provides assurance to the company to offer a benefit to convert a term policy to a permanent plan without proof of insurability in the future. As we get older this valuable conversion right can make the difference between being protected and not. If you buy life insurance with no medical exam the insurance company isn’t familiar with details of your health history and therefore not inclined to offer conversion options at terms end. Long term if you can qualify for coverage with underwriting then I would never suggest to buy life insurance no medical exam as there are no conversion rights.
My preference with no medical exam life insurance companies:
I suggest my clients take a physical to qualify for life insurance more than not, but there are cases where no medical exam life insurance fits best. I prefer National Life Groups 1click for no medical exam life insurance. They offer term for 10-30yr terms from $25k-350k of coverage. I also like Assurity Life and Americo they offer term and whole life rates that are competitive plus they are A rated by AM Best. I also like to stay away from companies like, Fidelity Life Insurance, Globe Life Insurance, Prime America, NYLAARP, Foresters Life Insurance, Colonial Penn, Bankers Life, and Monumental Life Insurance. At some point in the past there has been a client who struggled with the wrong coverage from one of these carriers. Its important to do your research and find a company that can help you accomplish your goals and protect your loved ones or business needs.
Life Insurance no medical exam has its place in the market. There are plenty of reasons to purchase coverage this way, although every consumer’s needs and health are different and it’s important when shopping for life insurance to compare companies and products to make sure you are taking care of your short and long term goals.
Who Can Benefit from No Medical Exam Life Insurance?
No exam life insurance policies aren’t the best option for everyone, but there are a lot of people that can take advantage of these plans. If you’re wondering if a no medical exam life insurance plan is best for you, there are a few factors for you to consider.
Your health is going to be the biggest determining factor is deciding which type of plan works best for you. If your health isn’t perfect, but still isn’t awful, then a traditional policy could save you money in monthly premiums. No medical exam life insurance is best for people with very poor health or with chronic conditions.
Another important factor is your age. Age is one of the biggest contributing factors in determining your monthly premiums. The older that you are, the higher your rates are going to be. Additionally, the older you are, the higher the chances are that you have health problems. If you have a lot more candles on your birthday cake than you used to, no medical exam life insurance could be best for you.
The Importance of Life Insurance
Just about anyone understands why they need life insurance, but few people actually purchase a policy. Not having an adequate life insurance plan can be one of the worst mistakes that you can make for you and your loved ones. There are countless stories of families every year that lose a loved one, and on top of that emotional stress, they are left with thousands of dollars in debt that they have no way to pay for. Life insurance will give you both peace of mind and also financial security for your family if something were to happen to you unexpectedly.
How much Life Insurance do you need?
Aside from deciding which type of life insurance plan will work for you, the next step is deciding how large of a plan you’ll need. Not everyone needs a one million dollar policy, but you need to make sure that you policy isn’t too small. There is no magical number for the perfect amount, but there are a few questions you can ask yourself to make sure that your policy will be enough in case of a tragedy.
“How much debt do I have?” One of the goals of life insurance is to pay for all of the final expenses. Debts like funeral costs, mortgages, credit card bills, and much more. Calculate all of the debt that you would be leaving behind and make sure that your policy will be large enough to pay for all of it.
Another question is, “How many people would suffer from the loss of income?” aside from left behind debt, is there any loved ones that rely on your salary to survive? The other goal of life insurance is to replace lost income. If you have a spouse and children that use your income to pay for essentials, then you should consider getting a larger life insurance policy, either through a traditional plan or no medical exam option. On the other hand, if you don’t have anyone that relies on your income, then you can afford to have a smaller life insurance policy and save money every month on monthly premiums.
Life Insurance: Things to Note
Before you sign a life insurance policy plan, there are a couple of factors that you should know. The most important is the graded benefits that you could face. The majority of policies (especially no medical exam policies) have graded death benefit clauses that could impact how much money your family would receive if you were to die. These clauses state that if anything were to happen to you within the first couple of years (normally two years, but it can vary depending on the company), the beneficiary of the policy won’t receive the face value of the policy. In most cases, they will only receive a refund of the premiums that you’ve paid towards the plan.
No Medical Exam Life Insurance
Because life insurance is so important, having an adequate policy is important. While a traditional underwritten policy will save you money every month in premiums, not everyone has the health or time for these plans. If you fall into this category, a no medical exam policy is the best route to take. Sure, you’ll pay more for coverage, but you can put a price tag on the peace of mind and coverage that life insurance brings.