Can you imagine getting life insurance with no medical exam and no waiting period? Believe it or not, this type of life insurance exists. It’s called no exam life insurance, and it goes into effect immediately — and no medical exam is required! A no exam policy is ideal for people who want an easy application process and no-frills policy. As opposed to undergoing a medical exam and waiting 4-8 weeks for a response from underwriters, no exam life insurance does away with the hassle and still gives you the coverage you need, when you need it.
Your Questions Answered
No exam life insurance is a great option for many people, but since there are several types, it’s important to know which type is best for you. Here we’ll take a look at frequently asked questions regarding no exam life insurance. If you need more information, feel free to contact the excellent insurance advisors at Sproutt.com. Sproutt is not affiliated with any insurance company and it has no agenda in recommending certain carriers over others. Its only agenda is matching consumers with the best-priced policies.
Who Usually Buys No Exam Life Insurance?
No exam life insurance is easy and convenient, but in some cases, these policies can be more expensive than fully-underwritten policies. You can get a free quote here. Because of the difference in prices, no exam policies are usually purchased by people who:
- Need life insurance fast – When you apply for no exam life insurance, you can get coverage immediately. This makes it ideal for anyone who needs coverage fast, whether you’re applying for an SBA loan or someone going through a divorce. It’s also ideal for people who just don’t have the patience to wait.
- Are scared of needles – About 10% of adults in the U.S. suffer from needle phobia, extreme fear of needles. For these adults, the thought of getting a blood test can lead to fainting, panic attacks, and other unpleasant things. The ability to get life insurance without having to undergo a blood test is a huge relief to them.
- Have serious health issues – Some people who have serious health complications may be turned down for traditional life insurance. In other cases, they may be approved but given very high premiums. No exam life insurance provides an answer to these people.
Is No Exam Life Insurance Only for People Who Are Unhealthy?
No! No example life insurance can be purchased by anyone. While it can be a good option for people with serious medical issues, it’s also purchased by many other types of people. As mentioned above, if you need life insurance fast, are scared of needles, or don’t have the patience to wait, no exam life insurance is a great option.
The only type of no exam life insurance that is specifically designed for people who aren’t in good health is guaranteed issue, a type of whole life insurance that offers guaranteed approval to anyone who applies. These policies only offer coverage of up to $25,000 and have very high premiums. Other types of no exam policies, like simplified issue or accelerated underwriting, are designed for anyone who needs life insurance coverage up to $1 million.
How Does No Exam Life Insurance Work?
To understand how no exam life insurance works, it’s important to understand how traditional policies work. Traditional life insurance policies are fully-underwritten, which means that all the information gathered from your medical exam, plus medical records, are sent to life insurance underwriters. These underwriters assess each detail and determine the statistical chances of you dying early.
The relationship between mortality rates and life insurance premiums is that life insurance companies need to protect themselves from risks. They’re businesses, after all. The higher the risk someone poses, the more they will be charged in monthly premiums.
People who are young and in great health usually have very low mortality rates, so they are given low premiums. People with some health complications may have higher mortality rates, so their monthly premiums are higher. Then there are those who are in such poor health that they are denied coverage altogether.
With no exam life insurance, insurers aren’t able to cover their risk as much because they don’t get information from a medical exam. Guaranteed issue, for example, is the most expensive type of life insurance since the insurer doesn’t ask any health questions. Simplified issue, on the other hand, is less expensive because insurers do ask health questions. Accelerated underwriting is the most competitive, even on par with traditional policies, because insurers gather information about applicants from third party sources so they can get an accurate picture of their health.
Making an Informed Decision
Now that you know the basics of no exam life insurance, you can make a more informed decision about whether it’s right for you. Remember to seek guidance whenever you have a question. Life insurance is one of the most important purchases of your adult life. While you can always cancel a policy, it’s worthwhile getting it right the first time since the younger you are, the better rates you get.
—
Negosentro.com | No Exam Life Insurance Questions and Answers
