Shopping for life insurance tends to land high on the stress meter. For one, you have to face your own mortality and plan for it. Secondly, if you don’t know the ins and outs of life insurance, the application process can be unnerving. You have to take a medical exam and answer questions about your medical history. Indeed, the application process can be invasive and discomforting, especially for people in poor health.
There are some situations where it’s best to opt for no exam life insurance, but it’s important to understand all your options before making that decision. Continue reading to learn more about no exam life insurance and who it’s for.
What is no medical exam insurance?
If you’ve never been through the application process for life insurance, you could be in for a shock. As mentioned before, most insurance companies make you get a physical exam as part of the underwriting process. However, no medical exam life insurance enables prospective customers to skip the underwriting process.
Even some companies that offer no exam life insurance will still want to get an idea of your medical history. You won’t have to go through an exam, but there’s a good chance you’ll still have to answer health questions and provide your medical records. As you can imagine, your answers to the questions will help determine your insurability and premiums.
Who is a no medical exam insurance policy for?
No exam policies aren’t ideal for everyone. One of the cons of getting no exam life insurance is that you can expect to pay higher monthly premiums.
Skipping the medical exam may sound like a way to speed up the process, but without the physical exam, you’re a higher insurance risk in the eyes of the insurance company. No exam policies are more ideal for people with health conditions and people who are averse to doctor’s appointments. However, if you’re young and healthy, your best bet is to get a medical exam and save some money.
What is guaranteed issue life insurance?
A guaranteed issue life insurance policy is similar to a no exam life insurance policy, but the main difference is that guaranteed issue policies are geared more towards seniors. Guaranteed issue policies are a smaller version of a whole life policy that pays up to $10,000 in death benefits. If the insured dies before they’ve paid for the policy, their beneficiaries will get a premium reimbursement and 10% interest to cover final expenses.
Ultimately, guaranteed issue policies are for seniors whose beneficiaries aren’t reliant on their income because the death benefit will be merely enough for final expenses. You won’t have to go through a medical exam to determine your eligibility, but you’ll also have to pay more for a smaller death benefit.
Do young adults with excellent health need life insurance?
People in their 20s and 30s tend to shy away from discussions about life insurance, but if you have a family, you need life insurance. In fact, the younger your family is, the more you need a life insurance policy to secure your family’s financial future if you should meet an untimely accidental death.
Most young people go with term life policies as they’re more affordable than whole life insurance. Term life policies are temporary and last for terms of 10, 20, or 30 years.
Getting life insurance is the best way to secure your family’s financial future after you’re gone. However, it’s important to make sure you get the right insurance policy for your family’s needs.
No medical exam insurance policies are ideal for people who are in poor health or of advanced age and wouldn’t be insurable otherwise. However, if you’re in good health, it’s a better idea to choose a regular whole life or term life policy. Whether you choose a regular medical exam life insurance policy or no exam policy, the most important thing is to make sure you get enough coverage to provide for your family in your absence.
