Today, there are many different types of life insurance policies on the market. Most of the traditional forms of life insurance coverage will require that an applicant be healthy. In most cases, life insurers will ask a number of health related questions, as well as require a blood and urine test in order to check for certain health conditions. If certain health issues are found, an applicant may be required to pay an additional amount of premium for their coverage – or, they could be declined for coverage altogether.
Whole Life Insurance versus Term Life Insurance
When considering the purchase of life insurance, there are two primary types that you can obtain. These include whole life and term life. Term life insurance is considered to be the most basic form of life insurance protection that a person can buy. With it, in return for a regular premium payment, a named beneficiary (or beneficiaries) will receive a stated amount of death benefit, provided that the insured passes away while the policy is in force.
Term life insurance policies, as their name implies, are in force for a set number of years, such as 10 years, 20 years, or even 30 years. Once this time period, or “term,” has elapsed, the policy will expire. Therefore, if the insured wishes to continue being insured, he or she must renew coverage at their then-current age and health status.
Because they are older at that time, their new premium for coverage will be higher – and in some cases, it could be a great deal higher. In addition, because term life insurance includes only pure death benefit protection, this type of coverage does not include any type of cash value or investment component.
Whole life insurance is a form of “permanent” life insurance protection. With whole life, an insured has both life insurance and a cash value component where they can build up a significant amount of savings over time. The cash within the policy is allowed to grow on a tax deferred basis. This means that no taxes are due on the gain of the funds inside of the policy until the time they are withdrawn. This can allow the funds to grow significantly.
In addition, whole life insurance policies do not expire at any particular time like a term life insurance policy does. As long as the premium is paid, the policy will remain in force. Therefore, once the premium amount is locked in, it typically remains the same throughout the remainder of the insured’s life. This can be a real advantage – especially if the policy holder plans to keep the whole life policy for a lengthy period of time, or if he or she has health issues and will not qualify for coverage again out in the marketplace.
No matter if the coverage is for yourself or you’re needing life insurance on parents; we can help.
How Do You Qualify?
Life insurance that does not require a medical exam is also known as “guaranteed acceptance” or “simplified issue” life insurance, depending on the actual policy being applied for. Qualifying for this type of coverage is typically easy, and much faster than other types of coverage that require full underwriting of an applicant.
In most cases, there are several questions that are asked on the application for coverage. These questions will generally ask for the following information from the proposed insured:
- Do you have any type of terminal illness that has a prognoses of less than 24 months to live?
- Do you smoke or use any other form of tobacco?
- Have you been diagnosed with HIV or AIDS related complex?
In addition, some applications will also ask if the individual currently resides in any type of long-term care or assisted care living facility. An applicant may also be asked certain employment related questions, as well as questions about his or her job duties. These questions are asked in order to determine whether or not the applicant works in a dangerous occupation.
Some types of no medical exam life insurance will ask no health related questions at all on the application for coverage. Although these policies are very easy to qualify for, they typically have lengthy waiting periods before the full amount of death benefit will be paid out. They are also quite expensive in terms of premium.
The Advantages of No Exam Life Insurance
There are a number of benefits of being able to obtain life insurance with no medical exam. First, it makes for an extremely easy and convenient application process. This is because, without all of the health-related screening, the time factor is sped up considerably, which will in turn, provide much needed coverage for the applicant sooner.
In some cases, an applicant can even get his or her life insurance policy within a matter of just a few minutes rather than needing to wait for several weeks – or even several months, in some instances – to be covered.
In addition, because there is no need to obtain a medical examination or blood and urine samples like there is with fully underwritten life insurance policies, life insurance with no medical exam can oftentimes be purchased by applying over the phone or through the Internet. This can be extremely convenient for an applicant who needs coverage quickly, as well as for someone who simply does not have the time or the desire to meet with an insurance agent in person.
Even more importantly for some people, these types of policies can be considered to be “coverage of last resort.” Here, those who have been turned down by other life insurance carriers for health reasons can now obtain the insurance protection that they need for loved ones and other beneficiaries, providing them with financial peace of mind. This can help to ensure that family members won’t need to struggle with bills or that a business can continue to survive after the death of the insured.
Who Should Consider the Purchase of a No Medical Exam Policy?
While no medical exam life insurance policies are not the ideal plan for everyone, they can be a very good choice for some. In many instances, those who have an adverse health condition that deems them ineligible for traditionally underwritten life insurance coverage would be a good candidate.
Likewise, there are many people who oftentimes feel ill when faced with the prospect of giving blood. Because many traditional types of life insurance coverage require blood and urine tests, this could pose a problem for these individuals. Therefore, a no medical exam policy could be a good solution.
The Disadvantages Of A No Medical Exam
Just like every other kind of life insurance plan, there are going to be some disadvantages to these policies that you should be aware of when you’re looking to get life insurance. It’s important to take note of these disadvantages when you’re looking to get insurance protection.
The first pitfall that you should be aware of is the price. These no medical exams are going to be much more expensive than a traditional life insurance policy. The purpose of the medical exam is to give the insurance company an idea of what your overall health is, and they will use your health as an indicator of how much risk you are to insure with the plan. With a no medical exam, the company doesn’t get the picture of your health, which means that are taking a higher risk with the policy, and they are going to offset that risk by charging you more every month. If you’re looking for the most affordable life insurance policy, you’ll want to apply for a traditional insurance plan if you can.
Another disadvantage to these policies is the limit on how much coverage that you can purchase without taking a medical exam. Most insurance companies are only going to allow you to purchase around $50,000 of insurance coverage. If you want any more than that, you’ll have to purchase another policy or apply for a traditional plan.
No medical exams are an excellent way to get life insurance coverage, regardless of your health or any pre-existing conditions that you have. Everyone should be able to get insurance protection.
Where to Purchase
Finding the right insurance policy for your specific needs can be difficult. That is why it is oftentimes best to work with a company that has access to many different insurance companies. We are affiliated with a number of the top rated life insurers in the marketplace today, and we can help to match you up with a plan that fits both your coverage needs, as well as your premium budget.
In order to get the process started of comparing policy benefits, along with premium quotes, simply use the form on this page. If you should have any questions or concerns at all along the way, please feel free to contact us, toll-free, at 888-229-7522. Our experts will be happy to address any of the issues that you are concerned with regarding coverage, quotes, policies, or even life insurance in general, so that you can get the insurance protection you need and the peace of mind that you and your loved ones deserve.
You never know what’s going to happen, so you don’t wait any longer to get the life insurance protection that your family needs. Contact one of our agents today.