For most applicants, the medical exam is the most worrisome step in purchasing life insurance. Although many would like to avoid this step at all costs, the paramedical exam only takes about 30 minutes and is performed by a nurse or technician within the privacy of your home.
Luckily, it is possible to avoid the exam with a no medical exam life insurance policy. There is a course of action that will allow you to bypass the medical exam with virtually no waiting period, enabling you to purchase life insurance quickly, whether it’s whole life or term.
However, no medical exam term life insurance is not for everyone. Insurance shoppers who are looking for the lowest rates possible will likely find them with a policy that is fully-underwritten. However, competition remains stiff and there are many companies offering no medical exam life insurance with rates that compete with a fully-underwritten policy (medical exam required).
What is No Medical Exam Term Life Insurance?
Generally when purchasing life insurance, there’s paperwork to fill out and medical exams to undergo in order to determine your eligibility for coverage. In some instances, you will be required to submit urine and blood samples and answer in-depth questions asked by a physician or a nurse. This process helps the insurance company determine the risk you pose when insuring you.
If it is found that you have significant health issues, you may be faced with substantially higher premiums, or worse, denial of coverage.
No medical exam term life insurance provides a way to omit the exams and paperwork while securing at least a small amount of life insurance coverage despite any existing medical conditions. Simply speaking, it’s a way to buy term life insurance with no medical exam.
No medical exam term life insurance is also known as “simplified issue” or “guaranteed issue” life insurance. The ones that primarily benefit from these policies are elderly individuals that have a difficult time obtaining life insurance due to their medical problems.
As the name implies, these policies have term periods, such as 10, 20, or 30-year terms, and low face values. The death benefit is paid out as long as the insured passes away during the policy’s specified term period. Even though no medical exam term life insurance policies have low face values, they can be purchased with higher face values from $250,000 to $500,000.
It’s relatively easy to get no medical exam term life insurance quotes with answering just a few medical questions. However, your premiums will be higher depending on your answers.
Here are the actual rates for $250,000 20-year term policy for a very healthy male and female non-smoker:
|Age of Applicant||Male Non-Smoker||Female Non-Smoker|
These rates are provided by SBLI, one of our go-to insurance companies for no medical exam Term Life Insurance
How No Medical Exam Term Life Insurance Works
The following are key points that you should know when it comes to no medical exam term life insurance:
- It is Faster
- There are age limits– Age restrictions depend on the company and amount. The maximum age ranges from 60 to 70.
- No medical exam required – No exam means no medical examination in your home, and no blood or urine samples.
- Limited coverage – Currently, $1 million is the maximum available in coverage, however, you can purchase more than one policy from different companies.
- More Expensive– When it comes to no medical exam term life insurance, your age, coverage amount, and numerous other factors determine your premium rates. It’s not always the most expensive choice, so it’s worth at least looking at.
- You may not qualify– No medical exam policies are more difficult to qualify for since the insurance company has less information about you to go on. There is always the possibility of being asked to complete a medical exam or even being declined.
The Difference between No Medical and Fully Underwritten Term
The main difference between no medical exam term life insurance and term life insurance with a medical exam is the application process. Regardless, both have to be submitted to underwriting in order to determine whether a policy can be offered and for what rate.
When it comes to fully underwritten policies, such as term life insurance with a medical exam, you will most likely have to complete health questionnaires, undergo medical exams, possibly lab tests, and submit physician’s records. Policies that are fully underwritten tend to be more affordable.
Don’t assume that “no medical exam” means no medical questions asked. No medical exam policies go through a different underwriting process. Oftentimes, third-party data vendors scope out your financial, medical, prescription medication, and driving histories.
Is No Medical Exam Term Life Insurance Right for You?
The underwriting for no medical exam term life insurance is relatively strict. In most cases, you’ve got a good shot of qualifying as long as you meet these three criteria:
- You’re in your 20s, 30s, 40s, 50, or sometimes 60s
- You’re in overall good health with few to no pre-existing conditions
- You want less than $1 million in coverage
Keep in mind that not just your health is considered here. Bankruptcy and other non-health related issues can prevent you from acquiring a no medical exam policy.
It’s imperative that you’re honest on your application. These insurance companies have ways to verify even the smallest detail, quickly. In fact, they are able to confirm if you’ve ever been a smoker, among many other things.
This policy will come with a contestability period, which is a two-year period following the purchase of the policy which allows the insurance company to investigate your death and discover whether false information was given at application time. If this is the case, your claim would be denied, leaving your loved ones with the financial burden of your final expenses.
How to Choose a Policy that’s Right For You
- Decide what is most important to your situation. Are you looking for something quick, and convenient, without a medical exam, even if it might cost more? Or are you willing to undergo a medical exam as long as it saves you money on your policy?
- Now that you have an idea of what you want, look for insurance companies that offer it. Examine the product descriptions closely and speak with a representative if possible.
- Look at this realistically. If you’ve done your homework, you should know what to expect. Working with an independent life insurance agent can help to keep your application moving along in case of any surprises along the way.
Simplified underwriting and accelerated underwriting processes are growing in popularity. Although new, life insurance companies are marketing them even more now. For those that don’t want to undergo the hassle of a medical exam, and just want a quick and convenient way to obtain life insurance, a term life insurance with no medical exam policy is the way to go.
Using 21st Century technological innovation, accelerated underwriting processes are gaining in popularity as underwriters search for more efficient and less expensive methods of capturing medical data from each applicant.
Accelerated or express underwriting is making the life insurance underwriting process considerably more efficient by obtaining needed medical information through innovative algorithms rather than depending on paramedical exams, blood/urine analysis, and attending physician statements.
And, as a result, life insurance applicants can get an almost immediate decision from underwriters and save you money on insurance premiums since this computer-based underwriting process is substantially less expensive than paying for medical exams, blood tests, and reports from physicians.
In my 20+ years as an independent life and disability insurance broker, I have personally assisted thousands of clients with their life and disability insurance needs. Being independent, I represent many highly-rated insurance companies and, because I am not beholden to any one insurance company, my focus is to find the right company and policy for each individual client.
I believe that when people shop for insurance (or anything else, for that matter) on the Internet, they are looking for a simple, non-intrusive, non-pressure method of doing so. I strive to treat my prospective clients with the utmost respect and I believe an educated prospect can make the right decision without sales pressure.