If your intentions are to purchase affordable life insurance to protect and secure the financial stability of your surviving loved ones after you die, you will likely have to undergo a medical exam and a blood test. Insurers can offer lower rates when they fully underwrite your policy and then be certain about your health, but is this what you want? A life insurance quick quote with no medical exam may be a better choice.
Many consumers believe these tests are intrusive and prefer to go an alternate route. There are situations where your medical exam and blood test could reveal health issues that you weren’t aware of, such as Hepatitis C. In fact, many baby boomers are discovering they have Hepatitis C and weren’t even aware of it since the disease does not typically have symptoms.
If you are in the group of consumers who are concerned about privacy, believe medical exams by insurers are intrusive, or you just don’t want to go through the hassle of a medical exam, there are other options out there.
No Medical Exam Life Insurance
If you apply for life insurance with a company that requires full underwriting of the applicant, you can count on completing a rather lengthy application, undergo a medical exam, provide blood and urine samples, and answer more medical questions from the health practitioner conducting the exam.
The good news is that the medical exam can usually be conducted at your home or workplace; it’s your choice. The bad news is your exam may reveal some health issues that cause a rate increase or even a decline of coverage.
Getting a life insurance quick quote with no medical exam may be a better alternative for you. By selecting this insurance product, you can skip the medical exam and blood/urine test and get your life insurance issued much quicker. Typically, people with health issues that know they may be rated up or resent having a medical test, will opt for this type of policy, even when they know it may cost more and they may have to purchase less coverage.
A no medical exam policy is term life insurance with a policy period of 5, 10, 20, or 30 years. The typical maximum death benefit is $250,000, but riders are usually available to broaden your coverage. There are health questions on the application that must be answered truthfully to avoid issues if you die during the two-year contestability period.
Two Types of No Exam Life Insurance
Most independent agents offer two types of no exam life insurance, Simplified Issue, and Guaranteed Issue. Both of which can be priced using a life insurance quick quote.
Simplified Issue – Although the simplified issue product does require you to answer medical questions and provide the contact information for your doctors and medical facilities, rarely will the insurer ask you to undergo a medical exam. Typically, the underwriter will review the application and order a report from the Medical Information Bureau and a Prescription Drug database. Since all of this is done electronically, you can expect your policy to be issued is just a few days rather than a few weeks.
It’s important to understand, however, that your rates for no exam life insurance will be higher than traditional insurance because the insurance company is accepting an unverified health risk.
Guaranteed Issue – Guaranteed issue life insurance is typically marketed to seniors to cover final expenses such as funeral and burial expenses, and to individuals that have major health issues that preclude them from qualifying for traditional life insurance.
Most applications for guaranteed issue life insurance have only three medical related questions:
- Are you currently in a hospital or long-term care facility?
- Have you been diagnosed with AIDS or HIV?
- Do you have a terminal illness?
If the applicant answers “no” to all three questions, the policy will generally be issued.
There are, however, some significant drawbacks to purchasing guaranteed issue life insurance. In almost every case, the insurance policy will have a two or three-year waiting period where if the insured dies from natural causes, the full death benefit will not be paid. Instead, the insurer will likely pay your beneficiary all the premiums you’ve paid in and in some cases, an additional small percentage of that amount.
If you die during the waiting period as a result of an accident, the full death benefit will be paid to your beneficiary. It is also important to note that guaranteed issue life insurance typically has a maximum benefit of $25,000.
When You Should Consider a Life Insurance Quick Quote with No Exam
Although no exam life insurance is generally marketed as an affordable, convenient, and quick alternative to traditional life insurance, it may not be the right solution for you. There are certain people that will truly benefit from getting a life insurance quick quote with no medical exam.
- If you have a chronic health condition that is not under control or if you are significantly overweight.
- If you need life insurance in place right away because of a divorce decree or other reason. Simple issue life insurance policies are typically issued in just a few days.
- If you have a hazardous occupation or participate in hazardous activities such as skydiving or deep sea diving.
- If you are older and in bad health and want to cover your final expenses.
- If you have health conditions and your employer doesn’t offer group life insurance.
Where to Purchase No Medical Exam Life Insurance
Many independent insurance agents, especially those who specialize in the senior market, will typically represent several insurance carriers that offer simple issue and guaranteed issue life insurance. Since no medical underwriting is required, you can easily get an online quote and purchase your policy electronically after talking with your agent.