July 2, 2020 2 min to read
Find out what no exam life insurance is and how to get it
Category : Finance
No exam life insurance is a type of life insurance that allows you to skip one of the most common steps of the traditional application process: the medical exam.
Some no exam policies include several basic questions about your health and require medical records from your doctor, while others ask no health questions at all.
Why Is a Medical Exam Usually Required for Life Insurance?
Traditional life insurance policies require applicants to undergo a medical exam before they can be approved. The exam is fairly similar to an annual physical.
It involves a medical professional recording your height, weight, blood pressure, pulse, and taking blood and urine samples.
All of this information is sent to the underwriters at the insurance company, who compare it against statistical information gathered from millions of people and assess how big of a risk you pose to the insurance company.
If underwriters determine that you pose a low risk, you get low monthly rates. If you are high risk, your rates will be higher. If you pose an extremely high risk, you may be turned down for a policy altogether.
No exam life insurance, on the other hand, requires no medical exam and involves little-to-no underwriting. The idea of bypassing the medical exam is appealing to many people for several reasons. No exam insurance means:
– No invasive blood tests and no needles
– Much quicker approval time
– Easier approval for most
– You don’t have to disclose personal medical information
Types of No Exam Policies
There are three main types of no exam policies:
– Simplified Issue
– Guaranteed Issue
While all of these types don’t require a medical exam, they vary in the amount of health information they do require.
Most insurance carriers will ask for non-health-related information, such as driving records, criminal records, and credit checks. You can read more to find out what information you need to provide for no exam policies.
A Simplified Issue policy is a type of term no exam life insurance, and it allows you to skip the medical exam but still includes questions about your current health, medical history, family history, finances, and lifestyle (i.e. dangerous hobbies, driving violations, etc.). Coverage usually goes up to $500,000 or $1 million at the most.
A Guaranteed Issue policy is a type of whole no exam life insurance. It waives the medical exam and doesn’t ask any health questions.
As long as you meet the requirements (age, no current serious medical issues like cancer or HIV) and pay the monthly premiums, you can get coverage. Guaranteed Issue policies only offer coverage up to $25,000 or $50,000.
A group policy is a life insurance policy that you get through your employer, and it’s similar to Guaranteed Issue. The application process…
Continue reading the article and learn more about no exam life insurance on Life Is An Episode website.