Life Insurance no medical exam is a type of life insurance that is sold on a sub standard basis to everyone. All applicants are assumed sub standard 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 take time. If you are in a hurry for protection then buying life insurance with no medical exam might be right for you. 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 premature of paying back loan.
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 its 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.