When it comes to purchasing life insurance coverage one of the first steps in the application process is the medical exam. The medical exam provides the life insurance company with an insight to your medical history. Your medical history is a big factor in determining if you will qualify for life insurance coverage. Your medical history also determines which risk classification you will qualify for.
With the introduction of life insurance with no medical exam, it has raised a lot of interest to consumers as to if they should be purchasing this type of coverage. After all why should you take a medical exam if you can get life insurance with no medical exam?
It is very important to understand exactly what life insurance with no medical exam is. We have compiled a list of pros and cons to help assist you with your decision about purchasing life insurance with no medical exam.
Before we get to our list of pros and cons it is very important to know that life insurance with no medical exam is not guaranteed issued life insurance. Life insurance with no medical exam still requires underwriting and you can be declined for coverage for a non favorable medical history.
When applying for life insurance with no medical exam, the life insurance company will pull your MIB (Medical Information Bureau) history as well as perform an Rx check. Both the MIB and Rx check gives the life insurance company some insight into your health history and prescriptions that have been prescribed to you by your doctor. Unfavorable results with lead to a higher risk class or possible decline.
The Pros of Life Insurance with No Medical Exam
Approval Time: A traditional life insurance policy can take several weeks or up to several months depending on the individual applying for coverage. This may not be ideal for someone that is looking for a life insurance policy to secure a loan for their business or someone needing coverage due to a divorcee decree. A life insurance policy without a medical exam requirement can drastically cut down the approval time from weeks or months to just 24 hours with some companies.
Convenience and Privacy: People live busy lives and it’s not uncommon to put off purchasing life insurance coverage because they don’t have the time to commit to scheduling the exam. Life insurance with no medical exam allows for easy completion of an application and there is no burden of scheduling an exam.
Trypanophobia: (Fear of Needles) Have a fear of needles or just simply can do without being poked? Life insurance with no medical exam would avoid this step of the life insurance process making it the best choice.
History of Elevated Labs: If you have a history of elevated blood pressure, cholesterol or are diabetic with elevated A1C levels, life insurance with no medical exam would avoid the lab portion of the application process. An elevated lab result could possibly lead to a high risk rating or even a decline.
The Cons of Life Insurance with No Medical Exam
Cost: Life insurance with no medical exam is more expensive than life insurance policies that require you to take a medical exam. The life insurance company is taking a greater risk by insuring you without labs and full medical underwriting. Most life insurance companies that offer life insurance with no medical exam automatically give the insured a Standard risk class. Although not a terrible risk class it does make the life insurance cost more than that of a Preferred or Preferred Plus risk class.
Example: Male Age 55 Applying for $100,000 10 Year Term Policy
- With Medical Exam Premium = $32.42 Monthly
- Without Medical Exam Premium = $46.41 Monthly
Limited Death Benefit: Life insurance with no medical exam has limited death benefit amounts. Most companies that offer life insurance with no medical exam have a maximum death benefit amount of $500,000. If you require more than $500,000, you will need to go with traditional medical exam coverage policy.
Shorter Issue Ages & Limited Lengths: Life insurance policies without a medical exam generally have shorter issues ages and limited term lengths, than traditional medical exam coverage. Someone who is at the age of 60 looking for 30 year term life insurance with no medical exam would only qualify for a 15 year policy. Traditional life insurance with a medical exam would allow for a 30 year term life insurance policy.
How to get Life Insurance with No Medical Exam Quote
Life insurance with no medical exam has its pros and cons. If you feel that a life insurance with no medical exam would be the ideal policy for you, then we can help. As an independent life insurance agency, we are able to search the best in life insurance with no medical exam. There are a few ways to get the best quote. Simply use the quote form located to the right of your screen, call us toll free (888) 777-7574 or send us a message below with detailed information about your request for coverage.