NO MEDICAL EXAM LIFE INSURANCE
No-Medical Exam Life Insurance : Who is it Good for?
Is the medical exam keeping you from getting life insurance? Normally, to get any type of life insurance insurers require a medical check-up even after you have answered a detailed health questionnaire. You see, people are not always forthcoming about their health conditions and insurers simply want to verify about the state of the risk they are taking because the longer your life expectancy- the better it is from the company’s financial perspective.
However, good news is – there are a number of insurance policies that require no medical exam Afraid of the needle? No problem! There are ways to obtain life insurance after simply completing a health questionnaire. No-medical-exam life insurance policies are a good fit for people who want to skip the medical test and get coverage quickly or for people who might have trouble being approved for traditional term life insurance for health reasons. Naturally this type of policy might be a little more expensive than your regular policies because it saves you the hassle of medical exams.
Mutual of Omaha is an excellent option for seniors seeking no-medical-exam life insurance. They offer a range of policies for individuals between the ages of 45 and 85, including both term and permanent life insurance options. Their term life policies provide coverage amounts up to $300,000 for people aged 50 and under, $250,000 for those aged 60 and under, and $150,000 for individuals aged 70 and under. Additionally, Mutual of Omaha offers permanent life insurance with lower coverage amounts—up to $40,000—designed to cover final expenses such as funerals or medical bills. These policies are particularly appealing to those who may not qualify for traditional term or permanent life insurance due to health concerns, and they do not require a medical exam for approval.
Transamerica, on the other hand, is a strong choice for younger individuals who want to avoid the hassle of a medical exam. They offer no-exam policies for adults as young as 18, with a straightforward application process that includes a health questionnaire, which can be completed online or by phone. Transamerica provides flexible coverage options, offering amounts up to $500,000 for young professionals and students planning for their future income. For those seeking smaller coverage amounts, they also offer policies up to $50,000, which can be used to cover final expenses in the event of an unexpected tragedy.
4 Types of No-Medical Exam Life Insurance Policies
There are four common types of life insurance policies that can allow you to bypass a medical exam: accelerated underwriting life insurance, simplified issue life insurance, guaranteed issue life insurance, and group life insurance. Of these, accelerated underwriting life insurance is the most comparable to traditional life insurance in terms of cost and coverage.
Accelerated underwriting life insurance uses technology to speed up the application process. Instead of undergoing a medical exam, you answer questions about your age and health, while software analyses this information alongside other available data, such as pharmacy and driving records. Algorithms assess your risk and set your premiums, which are typically similar to those of traditional life insurance, and coverage levels are comparable as well.
Simplified issue life insurance involves fewer questions and less data review than accelerated underwriting. It’s a faster process, with decisions sometimes made the same day, but there’s a higher likelihood of being denied coverage. For those who need life insurance quickly and with minimal hassle, simplified issue policies can be an ideal solution.
Guaranteed issue life insurance requires no medical exam or health-related questions, and approval is guaranteed regardless of health. While convenient, this option tends to be more expensive than other no-exam policies and usually offers lower coverage amounts. Many guaranteed issue policies have a ‘graded death benefit,’ meaning that if you pass away within a certain period after purchasing the policy, the insurer may only refund the premiums rather than pay the full death benefit. Typically, individuals between the ages of 45 and 80 are eligible for this type of insurance. It’s often the last resort for those who can’t qualify for other types of no-exam life insurance.
Group life insurance is frequently offered by employers, often at no cost or a minimal fee. These policies generally don’t require a medical exam, but the coverage provided is usually basic and may not be sufficient to cover long-term family needs. Additionally, if you leave your job, the coverage may not carry over. It’s important to ensure the death benefit aligns with your needs before relying solely on this type of insurance.
Choosing the right no-exam life insurance policy
With several no-exam life insurance options available, it can be difficult to decide which one is best for you. If you’re young and healthy, and willing to go through a more detailed process, an accelerated underwriting policy may be the best fit. If you want quick coverage with less paperwork, a simplified issue policy could work well. For older individuals or those with health issues, guaranteed issue life insurance may be the best option. Lastly, if cost is a priority, check if your employer offers a group life insurance plan, keeping in mind its limitations in coverage and portability.
No-Medical Exam Life Exclusions
A major concern for those purchasing no-exam life insurance is the potential for accidental fraud. Without a recent medical exam, you may be considered a higher risk by the insurer, and they will investigate thoroughly if a claim is filed. To prevent claim denial, it’s crucial to disclose all relevant medical information when applying for coverage. It is important to remember that like standard whole life insurance policies, no-medical-exam life insurance can deny or exclude coverage in certain situations. For instance, if you pass away while engaging in a risky activity such as scuba diving or bungee jumping, your beneficiaries may not be eligible to receive the death benefit. One of our experienced brokers can guide you through the process and take care of this part thoroughly so that you can have your peace of mind. Simply fill out one of these forms and we’ll get back to you within 24 hours.
References
https://www.transamerica.com/insurance/term-life-insurance
https://www.trustage.com/learn/life-insurance/no-medical-exam-life-insurance
https://www.policygenius.com/life-insurance/no-medical-exam-life-insurance