No exam life insurance

What is no exam life insurance?

Definition:
No exam life insurance is a life insurance policy that does not require a medical examination as part of the application process. Medical examinations for life insurance policy include drawing blood, collecting a urine sample, recording height and weight, checking blood pressure, and a medical history interview.

About:

Basically, no medical exam life insurance policies don’t require a medical exam as part of the application process. The key word is “require.” Some companies that offer simplified issue policies may request that you take a medical exam, depending on how complex your responses are on the application.

Historically there was no way to definitively access a person’s current health, and so medical exams have been a requirement. With the advent of the internet, the buying process has changed. The name of the game is now how simple and fast insurance companies can provide an official life insurance policy.

This is great news for the consumer because the largest barrier between you and a life insurance policy is the medical exam. With a life insurance policy that does not require a medical exam, the process entails at the very least, the application. Depending on the type of policy you are looking for, there are other hurdles to get a policy, but a medical exam is not one of them.

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• Accidental death and dismemberment pays in case of severe injury or death due to an accident
• Since death due to natural causes, including disease, is excluded from AD&D, the cost is far lower compared to standard life insurance
• The application is simple and straightforward. No medical examination or health questions required.
• Once you purchase an AD&D policy it will stay in effect until you cancel. The price will never increase and the coverage will never decrease

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The two different types of no medical exam life insurance

If you seek life insurance without a medical exam, there are various options available to you. But overall, these options fall into two general categories:

• Term life insurance
• Whole life insurance

More about each one below.

Term life insurance

No medical exam term life insurance policies have become hugely popular in the last decade, for several reasons:

• These policies are flexible. You can get up to $1 million in coverage and select a term that works best for you. A 20-year term is the most common, but longer terms are available.
• No medical exam term life insurance is affordable. It costs about 2 to 4 times less than whole life insurance. In fact, most people significantly overestimate the cost of this type of coverage.
• You can choose from many top-rated providers. Because no medical exam term life insurance has become so popular, many insurers have improved their products in this category.

While a medical exam isn’t required, you still need to qualify medically. But instead of having you take a physical, insurance companies will qualify you based on public records they can access online, such as medical history, prescription medication history, and driving records.

When you request an online quote, we ask a few specific questions before providing you with rates. We do this so that we can exclude results from certain insurers if we know that you would have a tough time meeting their eligibility criteria.

Term life insurance without a medical exam is best if you:

Whole life insurance

Whole life insurance policies have become less popular over time. But, they still have a strong foothold for a few reasons:

• These policies last your entire life. While some people prefer having life insurance only when it matters most, others would rather get one policy for the rest of their life.
• Some whole life insurance policies offer guaranteed acceptance. This might sound convenient, but it’s also expensive. These policies are most popular for those who can’t otherwise qualify for life insurance because of their health.
• Simple and straightforward. Final expense is a type of whole life insurance that’s popular among older adults. It’s typically used to cover burial costs, and usually a medical examination is not required to get this type of policy.

If undergoing a physical exam is out of the question, you’ll have two options if you want whole life insurance: final expense or guaranteed issue. These options are most commonly chosen by people in their 70s or older.

Should you decide you want one of these whole life insurance options, then simplified issue final expense insurance will be your best choice if you’re in overall good health. If you currently have any serious health conditions or have had any in the past, then guaranteed issue is your best choice.

Whole life insurance without a medical exam is best if you:

• Are 60 or older
• Want life insurance to cover your funeral expenses rather than to leave an inheritance
• Can’t qualify for term life insurance because of health issues or other reasons

How much does life insurance without a medical exam cost?

It mainly depends on whether you want term or whole life insurance. No medical exam term life insurance is surprisingly affordable. Price drops in recent years have definitely made this product more attractive than ever.

Additionally, some insurers have fine-tuned their underwriting process to where they can offer a policy without a medical exam that actually costs the same as, or even slightly less than, a traditionally underwritten policy that does require an exam. They are able to do that because less work is required and the difference in risk is virtually nil. This is especially true for people who are in good overall health.

Buying a whole life insurance policy without undergoing a doctor visit can be quite expensive. That’s mostly because people buy these policies at a later age, and the older you get, the more expensive life insurance becomes.

Features of life insurance with no exam

What we like

No paramedical exams

The most time-consuming and invasive part of the life insurance application process is the physical exam. Nobody likes taking a medical exam, and this step often prevents people from buying a life insurance policy. With a simplified issue policy, there’s a good chance that you’ll get to bypass this part.

Fast process

On average, the time it takes to get a policy approved, issued, and active is 2 weeks, though many policies are issued right away. It just depends on the company and policy you choose. Some companies use algorithms to underwrite applications. In that case, the second you finish your application online, you get an offer.

You can apply over the phone

Typically, if you’re offered a simplified issue policy, you’ll need to have a short phone call with an agent or a representative from the insurance company to complete the application process. This can take anywhere from 10 to 45 minutes.

No need to meet with an agent

At the heart of it, life insurance agents are salespeople, and some will try to pitch other products while they’re working with you to get a life insurance policy. , If you just want life insurance coverage, then simplified issue products are the easiest way to ditch the sales pitch.

You can complete the application online

If you’re computer savvy and don’t want to talk with an agent at all, you can go online and get a policy. Several companies now offer a totally online process.

What we don’t like

Lower coverage amounts

While simplified issue insurance can be a great option for customers, it involves a higher risk for insurance companies because there’s no medical exam. As a result, coverage amounts are limited.

Many term life policies don’t have conversion options

Most term life policies that require a medical exam offer a conversion option as a standard benefit. What that means is you can convert all or part of the policy to a permanent whole life policy later — without any additional medical requirements. While insurance companies vary on this, the trend is not to offer a conversion option on simplified issue term life policies. That means once the term is over, you no longer have life insurance.

Higher chance of getting declined

Being declined for a life insurance policy is not good. The decline is recorded in the MIB, which is a database that insurance companies share. It’s like a blemish on your permanent record. Furthermore, many companies that offer simplified issue life insurance products won’t approve people who have been declined elsewhere. So, getting declined by one insurance company can make you ineligible for products at other companies.

Is life insurance without a medical exam right for you?

It depends. No exam life insurance is a great option for

those that need less than $1,000,000 in coverage and don’t like the idea of taking a medical exam in order to get life insurance.

You don’t want to get declined for life insurance so it is important to know that you l qualify when choosing a no exam option.

What you should know about life insurance with no medical exam

“No medical exam” does not mean “no health questions”.

How much life insurance can you get without a physical exam?

It depends on the type of policy and the insurer. Generally speaking, you can get $500,000 to $1 million in coverage with term life insurance, depending on the specific company.

New life insurance providers are increasing the pressure on established insurers, though. Some offer as much as $2 million in coverage without a medical examination.

With whole life insurance, the maximum amount of coverage is far lower — usually around $50,000. Typically, a no exam whole life insurance policy is used to pay for burial expenses. In 2020, the average funeral cost was between $7,000 and $12,000. Some people buy a policy for $10,000, which will cover at least most of their funeral costs, whereas others go for a higher amount, such as $25,000, to pay off additional debt.

No exam does not necessarily mean no medical questions.

The life insurance application process is the same for the type of insurance you are applying for, less the medical exam. Life insurance is an important part of your financial plan and a life policy is a contract that lasts for a long time, sometimes your whole life. This is not a one-year cell phone contract, I want you to get as much life insurance for the best cost possible.

How you’re qualified when a medical examination isn’t required

Even though the insurer doesn’t require a medical exam, that doesn’t mean there’s no qualifying process.

Instead, a decision on your application will be made using the following records:

• Pharmacy report, which reveals all medications you’ve been prescribed over the last 5–10 years
• Motor Vehicle Department report
• Medical Insurance Bureau report (shows whether you’ve applied for or been denied life insurance in the past)
• Credit history (only a few insurance companies check this)

How no exam life insurance has evolved in recent years

In the past, if you didn’t want to undergo a physical, it meant a much higher cost. It also meant that the insurance provider would have a case manager assigned to your policy. This case manager would pull and review your public records, like medical, medication, and driving records.Additionally, you wouldn’t be able to get nearly as much coverage.Don’t let the hassle of a medical exam get in your way of a life insurance policy. There are various no exam options available to you, often with a minimal price difference.

But, over recent years, no medical exam policies have evolved tremendously. Some carriers like Bestow and Haven Life have fine-tuned their process so much that a decision can be made in seconds. And the cost? Only slightly more than policies that do require a medical exam. And when I say slightly, I mean pennies or dollars.

Learn more about term vs. whole life insurance

Methodology: We calculated these rates based on age and gender specified above, for healthy, non-smoking individuals based in Ohio.

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