Buying Life Insurance Without Medical Exam Required
When you apply for life insurance, it is common for
the insurer to require you to complete a medical exam
before you are approved. While a majority of standard
life insurers require the completion of a medical exam,
some life insurance companies offer specialized policies
called no medical exam life insurance. If you are currently
applying for coverage, it is important to understand
the difference between policies that do and do not require
a medical exam before policy issuance. Read on and learn
everything you need to know before submitting your application.
Why Do Insurance Companies Require Medical Exams?
Life insurance is all about measuring the risk of mortality.
Individuals with higher mortality rates have a larger
likelihood of passing away while they are young. One
way to uncover pre-existing conditions that can affect
an applicant's mortality rate is to require a medical
exam. If anything is uncovered before the policy is
issued, the insurer has the right to offer sub-standard
rates to recoup for the added risk. Individuals who
are found to be healthy may receive preferred or super
The Basics of No Medical Exam Life Insurance
Life insurance policies that allow applicants to forgo
a medical exam are typically term policies. This means
that the insurance will offer a level death benefit
for a specified period of time. The premiums will also
remain level until the term expires. This period of
time can vary based on the policy, and most terms last
between 1 and 30
years in length.
Like the standard term policy, a no medical exam policy
will pay your beneficiary the death benefit on your
plan if you pass away within the term and your policy
is active. Most life insurance policies that do not
require medical exams and will pay out for accidental
death and death resulting from illness. It is important
to review the specific requirements of the policies
you plan on applying for to understand what the plan
will cover. It is important to select a plan that offers
a sufficient death benefit and a long enough term before
you settle on a plan that will suit your needs.
What is the Major Difference Between Traditional Life
and No Medical Exam Life?
There are a few major differences between policies
that require a medical exam and policies that do not.
One of these differences is the amount of coverage that
you can purchase. Because insurers are taking on more
risk when they allow an applicant to forgo an exam,
they may offer smaller death benefits ranging between
$10,000 all the way up to $500,000.
Another major difference is associated with price.
When more risk is present, premiums will be higher.
For applicants who are in excellent health, it is a
wise idea to complete a medical exam so that they can
receive lower and more competitive premiums.
Who is No Medical Exam Life Insurance Right For?
No medical life insurance may not be for everyone,
but for the right applicant this could be the best type
of policy. If you are looking to obtain coverage quickly,
applying for no medical exam insurance is faster and
easier. The coverage will start almost immediately after
the application is reviewed and approved.
Another benefit of insurance that does not require
a medical exam is that the company will not ask about
pre-existing conditions. For individuals with conditions
that will typically make them ineligible for coverage,
this could be the most practical alternative. If you
have been declined for cover in the past, applying for
an unconventional policy suited for high-risk applicants
may be your only option.
You must consider the pros and cons of no medical exam
life insurance before you decide which policy is best
for you. Some important factors to consider include
your age, your health, your hobbies, your budget, and
your long-term goals. Choose the appropriate coverage,
start quoting premiums, and choose a plan that will
fit your requirements.