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No Medical Exam Life Insurance: What Is it?

Most people invest in life insurance to secure the financial status of their families after their death. It is understandable if you consider taking medicals exams as one of the most headache-inducing steps to go through. Though this process usually takes about 20 to 30 minutes, some applicants prefer to avoid it.

Whether you are purchasing a whole life or term life insurance, many firms have emerged offering these insurance policies without a medical exam. Other insurance service providers have incorporated advanced methods of eliminating the need for a medical exam by using revolutionary underwriting algorithms. But what are these policies, and how are they different from those that require a medical exam?

What is a no medical exam life insurance?

A medical exam life insurance is a life insurance policy offered by insurance providers without having to undergo a medical exam for approval. Most people prefer to avoid the traditional process of obtaining insurance coverage, and others are fearful of hospitals. Additionally, some people fear that a pre-existing condition would disqualify them.

Subscribing to this policy is similar to the traditional life insurance procedure. Once approved, you will pay a monthly premium. After death, your beneficiaries will receive the coverage funds. The only difference is taking a medical exam. However, since the insurance provider does not know about your medical condition, premiums tend to be higher and could reach double what the policy costs.

What Are the Types of No Exam Life Insurance?

There are three types, namely simplified issue life insurance, guaranteed issue life insurance, and group life insurance.

Simplified Issue Life Insurance: Simplified insurance requires you to answer some questions through which you won’t have to take an exam. You could be asked questions such as your weight, height, history of substance abuse, and your medical history. This type of insurance is usually limited to half a million dollars or less.

Guaranteed Issue Life Insurance: This type of insurance is ideal for individuals that have pre-existing medical conditions and have failed to qualify for any other insurance. As a last resort, insurance providers charge more on premiums since they consider it a risk.

Group Life Insurance: When you are insured by the company you work for without having to answer questions or undergo medical exams, the insurance falls under a no exam policy. Since the employer will cater for all or a significant portion of the premiums, group life insurance is considered an added benefit.

When should you consider a life insurance plan with no medical exam?

 The need to purchase a no exam policy is dependent on various factors because not many people would need it. Here are a few instances of when to consider a no medical exam life insurance.

  •  You have unmanageable chronic conditions like diabetes. This is because acquiring a life insurance policy could be costly or impossible.
  •  You participate in risky activities or if your job is dangerous. Even if you don’t have any health problems, it might be hard to get the insurance that utilizes an underwriting process.
  •  Your health is unstable because of old age.
  •  You are not able to get coverage from your employer because of a serious medical condition

The assessment and purchase of the right insurance coverage are not difficult. You should consider your lifestyle, financial status, and expectations. Additionally, you should remember that the primary objective is to have your loved ones financially protected.

Updated on April 13, 2020

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