When you have life insurance coverage, you can be much more assured that those who you love and care about will be able to whether financial difficulties in case of the unexpected. That is because the proceeds from a life insurance policy can be used for some different needs, including the payoff of debt – as well as the paying of funeral and final expenses. These funds can also be used to help your heirs and survivors with paying their everyday living expenses in the future.
To qualify for life insurance, it is often required that you complete an application for coverage and undergo a medical examination. This exam usually consists of providing the insurance carrier with additional details about your health, and providing the insurer with a blood and urine sample for testing purposes.
Because of this medical exam, the insurance company will be able to determine whether or not you have various health issues – some that can make you a higher risk to the insurance company if they accept your application for insurance protection.
If you have certain health conditions, then, this exam could make it more difficult for you to obtain the insurance coverage that you need. But, it does not mean that you won’t be able to still get the coverage that you are hoping for. One alternative option could be for you to apply for a no medical exam life insurance policy.
What Is No Exam Life Insurance And How Does It Work?
No medical exam life insurance is a type of life insurance policy that will not require you to undergo a medical exam. This means that you will not be required to provide the insurance company with a blood and urine sample in order to be approved for the coverage.
Just as with other types of life insurance, the policyholder will be required to pay in a premium, in return for the payout of a death benefit if the insured dies when the policy is still in force. This death benefit will be received free of income taxes to the beneficiary.
There are various types of no medical exam life insurance that can be purchased. For instance, with some no medical exam policies, while the applicant will not be required to provide a blood and urine sample to the insurance carrier for testing, he or she may still be required to answer health related questions on the application for coverage. With that in mind, approval on this type of policy will not be guaranteed.
However, if an individual applies for a guaranteed issue policy, they will obtain the coverage. This is because, as its name implies, an individual is guaranteed to have the policy issued, regardless of his or her health condition, as long as the premium is paid.
No medical exam life insurance can be either term or permanent. With a term policy, the coverage will remain in force for a certain number of years, such as 5, 10, or 20. Term life insurance does not offer any cash value or savings build up within the policy.
With a permanent life insurance policy, however, there is both death benefit protection, as well as a cash value component. The funds that are in this cash value are allowed to grow on a tax-deferred basis, meaning that there are no taxes due on the growth unless or until the money is withdrawn.
In many cases, if a no medical exam policy is permanent, it will be a whole life option. Here, the amount of the death benefit is locked in, and the amount of the premium is guaranteed not to increase over time.
What Is The Difference Between No Exam And Regular Life Insurance Coverage?
While there are many similarities between no exam life insurance and medically underwritten coverage, there are also several differences. First, the face amount of coverage that can be purchased via no medical exam is typically less than that of a traditional, medically underwritten policy.
Also, the way in which the death benefit is paid out on a no medical exam policy can differ from that of traditional coverage. For instance, a no medical exam policy may require that the insured have the policy in force for at least two years to have the full, stated amount of the death benefit paid out. That way, the insurance carrier will be better able to hedge their risk in case that the insured passes away very soon after the coverage has been purchased.
In this case, the named beneficiary on the no medical exam policy may only be able to receive back the amount of premiums that were paid into the policy (possibly with a small amount of additional interest), or a certain percentage of the stated death benefit.
It is important to note, though, that if the insured has been covered for a longer period (i.e., he or she has lived beyond the length of the probationary time limit), then the full amount of the death benefit can be paid out to the named beneficiary.
Also, because those who obtain no medical exam life insurance coverage are usually not in excellent health, the insurance company may also protect itself from this added risk by charging a higher premium price for the no medical exam coverage.
However, because there are no medical examination results to contend with – which can often take several weeks, or more – a no medical exam life insurance policy can typically be approved and issued very quickly. This means that you could essentially have your life insurance coverage in force within just a few days of applying – and in some instances, even the very same day.
How Much Will A No Exam Life Insurance Policy Cost?
There are numerous factors that will determine how much you will be charged for a no medical exam life insurance policy. These can include your age and gender, as well as the amount of insurance protection you are purchasing.
Because those who typically apply for no medical exam life insurance coverage are considered to be higher risks to the insurance carrier, however, the premium that is charged for this type of policy can typically be higher than that of a regular, medically underwritten policy – with all other factors being equal.
However, in some cases, no medical exam coverage may be the only way to get needed protection that can allow your loved ones the peace of mind in knowing that they can move forward financially in case of the unthinkable.
Who Should Consider No Exam Life Insurance?
In determining whether or not no exam life insurance is right for you, there are several factors that are important to consider. For example, what is your current age and health condition? For those who are young – such as age 50 and below – and in good health, a no exam life insurance policy may prove to be a more expensive proposition than the purchase of a traditional, medically underwritten life insurance policy.
This is because, in most cases, the face amount of no medical exam life insurance is often lower than that which can be purchased with a medical examination. In addition, because those who typically apply for no exam life insurance coverage have various health issues, they are considered to be more of a risk than someone who is in good health. This, in turn, will usually equate to a higher premium amount being charged for no exam life insurance policies.
However, if you are over the age of 50 and / or not in excellent health, then a no exam life insurance policy could provide you with a way to obtain the coverage that you need – even if you have been turned down for traditional life insurance protection in the past.
There are others who may also find a no medical exam life insurance policy to be preferable over a medically underwritten option. For instance, for those who have an intense fear of needles, the blood sample that is typically required for approval with medically underwritten insurance coverage may cause enough intimidation to forgo getting life insurance coverage. But, with a no medical exam policy, this blood draw will not be necessary, allowing the individual to move forward without fear.
You may be looking for life insurance for yourself or insurance for your elderly parents. No matter who needs the coverage, we can help.
Where To Get The Best Rates On A No Exam Life Insurance Policy
When you are seeking the best rates on a no exam life insurance policy, it is often recommended that you work with a life insurance agency or brokerage that is independent, and in turn, has access to more than just one insurance carrier. In doing so, you will be much better able to compare the policies, benefits, and premium quotes of several insurers – and from there, you can make the determination as to which one is the best for you.
If you are ready to get started, we can help. We work with many of the top providers of no medical exam life insurance, and we can assist you with obtaining all of the pertinent details that you require for making an informed buying decision. This process can be easy and convenient, as you can typically move forward via your computer, and without having to meet in person with a life insurance agent. To begin the process, just simply take a moment to fill out the form on this page.
Should you still have any additional questions regarding whether or not a no medical exam, life insurance policy is right for you – or, even if you just have a question about life insurance in general – our experts will be happy to walk you through all the details. We can be reached via phone, toll-free, by calling 334-380-4188.
We understand that the purchase of any life insurance can be somewhat overwhelming – regardless of whether it is a no exam policy, or a medically underwritten option. However, when working with an independent life insurance expert, you will be getting unbiased assistance that can move you into the coverage that you need, at an affordable premium price. So, contact us today – we’re here to help.