Life insurance is an important part of most any financial plan. This is because the proceeds from a life insurance policy may be used by loved ones and survivors for a number of different needs, such as paying off large debts, continuing to pay ongoing living expenses, and/or for the payment of the insured’s funeral and other final expenses.
While many people can easily qualify for the life insurance coverage that they need, there are others who, due to health-related conditions, may not be so fortunate. This is where a no exam life insurance policy could help.
What is No Exam Life Insurance?
In many cases, qualifying for a life insurance policy will require that the applicant fully complete an application for coverage, as well as undergo a medical examination. During the medical exam, a paramedical professional will take the applicant’s heart rate and blood pressure, and will also collect a blood and a urine sample.
The health information that is determined about the applicant will then be relayed to the insurance company, which will, in turn, decide as to whether or not the individual will qualify for a policy.
As an alternative to a “fully underwritten” plan, there is no exam life insurance. This is a type of policy where, as its name implies, there is no requirement for the applicant to take a medical examination. In some instances, there may also be very few health-related questions to answer – although this is not necessarily always the case.
Often, those who apply for no medical exam life insurance are considered to be higher risk, due to particular health issues and/or because they work in a “risky” or dangerous occupation. Because the insurance company must compensate for this higher risk of having to pay out a policy claim, no exam life insurance coverage is typically more expensive. Also, the coverage amount may be low.
How No Exam Life Insurance Works
In many ways, no exam life insurance works the same way that fully underwritten coverage works – the insured pays a premium in return for death benefit coverage should death occur while the plan is in force.
In some cases, however, if the insured passes away during the first year or two of the policy, the full amount of the death benefit may not be paid out to the beneficiary. Here, for instance, the beneficiary may instead just receive back the amount of the premium that was paid in or just a percentage of the stated death benefit. If, however, the insured lives past the stated time period, the full amount of the death benefit would be paid to the policy’s beneficiary.
Term versus Permanent No Exam Life Insurance Policies
A no exam life insurance policy may be either term or permanent. With a term plan, there is only death benefit protection, and there is no cash value, or savings build up in the policy. Because of that, term insurance can frequently be obtained for a lower amount of premium – all other factors being equal.
Term life insurance is purchased for only a set time period, such as ten years, fifteen years, twenty years, or even for thirty years. There are also many life insurance companies that offer one-year renewable term life insurance coverage.
Permanent life insurance offers both death benefit protection and cash value. Here, there is no set time limit on the coverage, but rather, as long as the premium is paid, the plan will remain in force.
The cash that is in the cash value component of the policy is allowed to grow tax-deferred, meaning that there is no tax due on the gain unless or until the money is withdrawn. The funds that are within a permanent life insurance policy may be either borrowed or withdrawn by the policyholder for any reason.
Typically, permanent no exam life insurance policies are whole life. With a whole life insurance policy, the amount of the death benefit remains fixed, as does the amount of the premium – even as the insured ages, and regardless of whether his or her health condition worsens.
Types of No Exam Life Insurance Available
There are several different types of no exam life insurance that are available. These include:
- Simplified Issue
- Guaranteed Issue
- Graded Death Benefit
- Level Final Expense
With a simplified issue plan, while there is no medical examination required, the applicant for coverage will still need to go through the underwriting process. This means that typically, the individual will still need to be in good health in order to qualify.
On the other hand, a guaranteed issue policy will be issued to an applicant, regardless of his or her health condition – as long as they are within a certain age bracket. Guaranteed issue policies are frequently considered to be policies of last resort if an individual is unable to obtain life insurance via any other method.
With a graded death benefit no exam life insurance policy, the full death benefit will not be paid out if the insured dies right away. Rather, the amount of death benefit will increase each year that the insured remains alive.
Level final expense life insurance policies are usually used for paying the costs of one’s funeral and other related final expenses, such as a burial plot, headstone, and memorial service. Typically, there will be some health questions for the applicant to answer. However, there is no medical exam needed.
How Much Does No Exam Life Insurance Coverage Cost
There are a number of different criteria that will determine the premium cost of a no exam life insurance policy. These include the age and gender of the insured at the time of application. The type and the amount of life insurance coverage will also be considered. For example, in most cases, permanent life insurance will cost more than term. And, a higher death benefit will usually equate to a higher premium price.
An applicant’s health condition can still also play a part in the price that is charged for no exam life insurance coverage. This, however, will depend on the type of policy that is being purchased.
As with many other products and services that you purchase, the company from which you buy a life insurance policy can be another factor in the price that you pay. Even for the same type and amount of protection, two insurers could charge very different premiums. With that in mind, it can be extremely beneficial to shop and compare several different no exam plans before making a purchase. Doing so could end up saving you quite a bit of money in premium – especially if you keep the policy for many years.
Is No Exam Life Insurance Coverage Right for You?
Although it isn’t for everyone, a no exam life insurance policy could be right for you if:
- You have certain health conditions
- You are between the ages of 50 and 85, and you are seeking coverage for your final expenses
- You are fearful of needles (even if you are in good health) and you do not wish to undergo a blood test as a part of the underwriting process
- You need life insurance policy approval quickly, such as for the qualification for a loan
How to Get the Best Premium Rates on No Medical Exam Life Insurance Protection
If you have been looking for the best premium rates on no medical exam life insurance protection, it can be beneficial if you work with an independent life insurance professional who can show you different policies, carriers, and premium quotes. That way, you can pick and choose which of these will work the best for you, and for your budget.
When you are ready to move forward with the purchase of a no exam policy, we can help. We are an independent life insurance brokerage, and we work with many of the top life insurance carriers in the marketplace today. We can provide you with all of the key information that you need – and we can do this for you very quickly and easily – all from your computer, and without you having to meet in person with a life insurance agent. If you’re ready to begin the process, then all you need to do is just simply fill in the quote form on this page.
Getting life insurance coverage may be difficult for those who have certain health conditions. But the good news is that a no exam life insurance policy could open more doors for you, and provide you with the protection that you need. So, contact us today – we’re here to help.
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