Life insurance is an important tool for nearly any good, solid financial plan. Just knowing that your loved ones will have the funds that they need, in case of the unexpected, can provide you and them with peace of mind.
For many people, applying for life insurance coverage simply entails just filling out the application for coverage, and then waiting for an approval from the life insurance company. But for some people, obtaining the life insurance that they want and need may be somewhat more challenging. This can especially be the case if you have certain types of adverse health issues.
While all life insurance companies do not underwrite their applicants in the same manner, there may still be times when a person does not qualify for medically underwritten life insurance coverage. In these cases, a good alternative could be a no medical exam life insurance policy.
What is No Exam Life Insurance Coverage and How Does It Work?
When going about applying for life insurance in the traditional manner, it will oftentimes be required that the applicant for coverage undergo a medical examination. During this exam, the individual will meet with a paramedical professional – also known as a paramed – and they will be asked various questions regarding their overall health.
As a part of the medical exam, the individual will also have their blood pressure and heart rate readings taken by the paramed. The paramedical professional will also take a blood and a urine sample. These samples are then analyzed by the life insurance company so that if certain health issues are apparent, the applicant may nor may not qualify for the coverage.
With a no medical life insurance policy, though, there is no medical examination to contend with. This means that you will not have to meet with the paramedical professional, nor provide a blood or a urine sample. Because of this, it may be easier for those who have certain types of health issues to still qualify for a no medical exam life insurance policy.
Types of No Exam Life Insurance
A no medical exam life insurance policy will typically be a permanent form of life insurance protection. This means that the policy will usually have both a death benefit component, along with a cash value component.
Once qualified for a no medical exam insurance policy, it is usually not allowable for the insurance company to cancel the policy – unless the policy’s premiums are not being paid. With that in mind, it is essential to continue paying the premiums on this coverage.
The amount of the premium is also usually locked in and guaranteed not to increase in the future – even given the insured’s increasing age over time, as well as how their health issue (or issues) progress.
A permanent life insurance policy will also allow the cash inside of the cash value component to grow and compound on a tax-deferred basis. This means that there will be no tax due on this gain unless or until the policyholder decides to withdraw it.
Cash from these types of policies can typically be either borrowed or withdrawn for any reason that the policyholder needs it – including to supplement retirement income, pay off debts, and / or for taking a nice vacation.
It is important to note, however, that when it comes to the removal of cash from the policy, it is not required that it be paid back. However, if there is an unpaid balance at the time of the insured’s death, then the amount of this unpaid balance will be deducted from the amount of the death benefit that is paid out to the policy’s named beneficiary.
In some cases, a no medical exam life insurance policy may be referred to as a final expense policy. These life insurance plans are typically purchased by those who are between the ages of 50 and 80 (or 85). In some cases, however, an insurer will accept applicants who are older.
A final expense life insurance policy is typically purchased with the intent of paying off one’s funeral and other final expenses. These could include the cost of a headstone, a burial plot, flowers, transportation, and the memorial service. Today, these costs can often run in the range of $8,000 to $10,000…or more.
Knowing that a person has final expense life insurance can provide loved ones with relief in knowing that these high expenses can be paid off – without the need to dip into savings or put these costs on credit.
In many instances, the death benefit that is secured on a final expense life insurance policy will be somewhere between $5,000 and $25,000 – however, there are cases where an insurance company will offer the ability to obtain more.
Because many seniors apply for final expense life insurance coverage, these plans will not usually require a medical exam to be taken for the purpose of qualifying for coverage. This means that once it is applied for, an individual could essentially be approved very quickly – and in some cases, approval can come the very same day.
How Are the Benefits Paid with a No Medical Examination Life Insurance Policy?
When choosing a no medical exam life insurance policy, it is important to review just exactly how the death benefits from the plan will be paid out. This is because not all policies will automatically pay out 100% of the stated death benefit amount if the insured passes away within a certain amount of time after purchasing the policy.
For example, in some cases, if the insured dies within just the first two or three years of policy ownership, then it could be that only just a percentage of the stated death benefit will be paid out. In other cases, the named beneficiary will only receive back the amount of the premiums that were paid into the policy.
However, if the insured lives beyond this two or three-year time limit, and then passes away many years later, the named beneficiary on the policy will be able to receive 100% of the stated death benefit (unless there is an unpaid balance from a cash withdrawal or borrowing).
How Much Does No Medical Exam Life Insurance Cost?
There are some factors that come into play when determining the premium cost of a life insurance policy. Certainly, these will include the age and gender of the applicant, as well as the type and the amount of the coverage.
Life insurance is also priced, in large part, according to whether or not the applicant is considered to be a smoker, as well as their overall health – and their family health history. (This is because there are certain health conditions that may be hereditary).
In many cases, those who are applying for a no medical exam life insurance policy may have health conditions that deem them as being more of a risk to the insurance company – and because of that, these types of policies will often be costlier in terms of premium than a medically underwritten policy, with all other factors being equal.
That being said, however, there are also many instances where a no medical exam life insurance policy could be the only available option – so these plans can allow coverage to be purchased when there seems to be no other option. And, because of that, a no medical exam insurance policy can be a good solution.
When shopping for a no medical exam life insurance policy, it is important to shop around and compare premium prices. This is because, just as with other types of products or services that you may purchase, different insurance companies will price their policies differently – even for the very same type and amount of insurance coverage.
Going from one insurance company to another in order to compare prices, however, can be a time-consuming endeavor. This is why it is typically best to work with a company or an agency that is independent of just one single insurer but rather has many insurance companies to offer. Comparing this way, with an independent brokerage firm, can end up saving you quite a bit of time – and frustration – throughout the application process.
This can also save you money if you are able to save on your premium. This is because, while just $5 or $10 per month may not seem like a big deal, if you plan to keep your policy for many years, these savings can add up over time.
Why Consider No Exam Life Insurance Coverage
There are several types of individuals who may be good candidates for no medical exam life insurance coverage. For example, if you have a health condition that could deem you as being uninsurable for traditionally underwritten coverage, then this could be a good option for you – even if you have been turned down for life insurance in the past.
A no medical exam life insurance policy may also be a good fit for those who either work in risky occupations, and / or for those who participate in higher risk hobbies such as scuba diving or rock climbing. This is because in some cases, you may or may not qualify for regular life insurance coverage.
In addition, there may also be some people who are very fearful of needles. If this describes you, then you will not be required to provide a blood sample with a no medical exam life insurance policy – and, while your cost of coverage may be higher than it would be with a traditional policy, it could still be well worth it.
What to Look for In a No Exam Life Insurance Policy
In seeking a no medical exam life insurance policy, you will want to ensure that you have the proper type and amount of coverage. This is because your beneficiaries may need a certain amount of funds to pay off debts, to pay living expenses, to pay for final expenses, or for other particular needs.
You will also want to make sure that you are aware of how – and how much of – the death benefit will be paid. This is because, if the unexpected were to occur within the first year or so of owning the policy, you will need to provide your beneficiary with the knowledge of how much funds he or she can expect.
The choice of a life insurance company is also very important when choosing a policy. This is because you will want to be sure that the insurer is strong and stable from a financial standpoint and that they have a good reputation for paying out their policyholder claims.
How and Where to Find the Best Quotes on No Exam Life Insurance
If you are in the process of seeking a no medical exam life insurance policy – or any type of life insurance coverage – we can help. We work with many of the top life insurance carriers in the marketplace today, and we can assist you with obtaining all of the important details that you will require for making a well-informed purchasing decision.
We can do so for you quickly, easily, and conveniently – and without the need to meet in person with a life insurance agent. If you are ready to move forward with the process, then just simply fill out the form on this page.
Should you find that you still have any additional questions regarding finding the best no exam life insurance policy, the please feel free to contact us directly. Our experts are happy to walk you through obtaining a quote, as well as assisting you with the additional information that you may require. We can be reached via phone, toll-free, by dialing 334-380-4188.
We understand that the purchase of life insurance may be somewhat overwhelming. This can be the case if you may or may not qualify for traditionally underwritten coverage. But the good news is that you still have options. So, contact us today – we’re here to help.