Life Insurance and Coronavirus - Buy Coverage Without an Exam
Over the last year, we've received an influx of calls from folks that are scrambling to protect their families from the Coronavirus with a life insurance policy.
Despite the ongoing pandemic, you can still purchase an affordable life insurance policy to preserve your family's financial future while things slowly return to normal.
While some carriers tightened-up their guidelines, a few providers actually simplified their approval process, so you won't have to meet face-to-face with an agent or take an exam. And once your application is approved, you'll be covered for any cause of death except suicide.
Here’s what we'll cover in this post:Quick Article Guide
What is Term Life Insurance?
Term life insurance is the least-expensive form of life insurance available. It provides a level death benefit for a fixed number of years. During your policy's "term," the cost of your life insurance policy is guaranteed not to change, regardless of any changes to your health or occupation.
These policies are usually purchased by the household's primary breadwinner to protect their income until they pay-off their mortgage or reach retirement age. A term policy can also be used to collateralize a small business loan, or provide a stop-gap during market fluctuations.
Purchasing Term Life Insurance Over The Phone
In the past, purchasing life insurance required a face-to-face meeting and a medical exam. Thankfully a few top-rated providers including; Penn Mutual, Banner Life, Prudential, and SBLI no longer require an exam. Qualifying applicants can actually purchase their policy over the phone in a matter of minutes.
Instead of requiring a physical exam, these providers will electronically review your medical records. Every insurance company has a slightly different approval process, but applicants in average or better health can expect an approval in as little as 15 minutes with some carriers.
The only downside to these policies is that they tend to be less-lenient when it comes to approving applicants with health issues. This is one of the many reasons it's very important to work with an expert that represents a few dozen life insurance companies.
Currently, these health issues seem to be causing the the most concern for the life insurance industry:
- Obesity with a BMI greater than 35
- Type II diabetes diagnosed before age 50
- Type II diabetes with an A1C greater than 7.0
- Heart Disease or Circulatory Disorders
- Any Serious Lung Issues
JRC works with more than 50 highly-rated life insurance providers to match our clients with the best policy available. We also specialize with applicants that have pre-existing health conditions and are considered to be a "high-risk" for coverage.
Will my Policy Pay if I Die From the Coronavirus?
A term life insurance policy will pay the death benefit if you pass away from a heart attack, Coronavirus, cancer, or any type of health issue. They also protect from accidental causes of death like car accidents. However, during the first two years of your policy, suicide is not covered.
Some policies also offer living benefits that can be used to pay for medical bills or day-to-day expenses. For example, Prudential offers an accelerated death benefits which allows the insured to access their policy's death benefit if they are diagnosed with a terminal illness.
The only time an insurance company will refuse to pay a claim is if they can prove fraud during the first two years of your policy. While this is extremely rare, the most common example we've seen is when a client lies on their application about a recent health issue.
In other words, as long as you purchase your life insurance before a Coronavirus diagnosis, your family is covered. If you have been recently diagnosed with any health issue, the insurance companies will not approve your policy until you have successfully completed treatment.
Using Life Insurance as a Stop-Gap while the Market Recovers
One of the most common reasons for purchasing a life insurance policy is to provide a financial safety net. When market suffered major losses during the first weeks of the pandemic, some breadwinners offset their losses with term life insurance while they waited for the market to recover.
While the market rebounded faster than many anticipated, some experts still expect to see a crash in the near future. Purchasing an insurance policy can also offer peace of mind to retirees that rely on stocks or annuities to fund their living expenses.
Family-owned businesses can also use a term life insurance policy to collateralize a loan while their business recovers. In this situation, in the owner were to pass-away before the loan is repaid, the death benefit from the insurance policy would be used to settle the balance.
This allows the business to continue to operate instead of being forced to liquidate assets to pay the creditors. Most business owners purchase a 10-year term, but if you're young and healthy, you might want to consider locking in a policy until your planned retirement age.
In the following section, we've further outlined the simplified underwriting process offered by SBLI.
SBLI's Accelerated Underwriting Process
Savings Bank Life Insurance Company, also known as SBLI, recently released a term life insurance policy with an expedited approval process. These policies do not require a medical exam for approval and they're available to almost anyone between the ages of 18 to 60 in fair to excellent health.
In fact, no human contact is required at all and up to $500,000 of term life insurance coverage is available. The entire process is handled over the phone and most people receive a decision within two weeks. The company is also lenient with a variety of health issues which we've outlined below:
- Asthma
- Anxiety/Depression
- Benign Prostate Disorder/BPH
- Basal Cell Skin Cancer
- Blood Pressure Medication
- Cholesterol Medication
- Crohn’s Disease
- Diabetes-Type 2 (Diet-Controlled Only)
- GERD/Acid Reflux
- Hepatitis A and B (Acute Only)
- Mild Sleep Apnea (with CPAP use)
- Thyroid Disorder
- Ulcerative Colitis
While SBLI tends to be one best no exam life insurance providers for many people, they are not the best company for everyone. Depending on your age, gender, health, and the amount of coverage you need, another provider may have better options.
For example, Penn Mutual - one of the A+ rated life insurance providers we represent - offers up to $5,000,000 of term or permanent life insurance without an exam. Like SBLI, these policies are purchased over the phone, and most people receive a decision within a week or two.
For an accurate quote based on your age and health, please call us toll-free at 855-247-9555. You can also use our free life insurance rate calculator below to instantly compare rates from dozens of top-rated providers.
Prudential's PruFast Track
On April 20th, Prudential began offering up to $3,000,000 of term insurance without an exam through their PruFast Track program. These policies are available to qualified applicants under the age of 60 and they do not require any human contact for approval.
Prudential is one of the best companies for folks that are overweight or anyone with type-2 diabetes. They are also a great option for people with elevated cholesterol. Their policies also offer a A.D.B. rider which allows the insured to access their policy's death benefit if they become terminally ill.
The company is rated A+ (Superior) by A.M. for their financial stability, and they have been in business for more than 145 years. To learn more about Prudential, please see our article, "Prudential Life Insurance Review - 7 Reasons They're the Best." or call us toll-free at 855-247-9555.
No Exam Life Insurance Rates by Age and Gender
In the following tables we've provided some sample term life insurance rates for simplified issue policies that do not require a medical examfor approval. The rates displayed below are for non-smokers in excellent health for their age bracket.
Sample No Exam Rates for A Male (10-Year Term)
| Current Age | $100,000 | $250,000 | $500,000 | $1,000,000 |
| 35 | $7.31 | $9.68 | $14.06 | $18.92 |
| 40 | $8.49 | $11.83 | $17.20 | $23.22 |
| 45 | $11.04 | $16.81 | $27.09 | $44.72 |
| 50 | $14.24 | $23.98 | $40.77 | $68.96 |
| 55 | $20.38 | $37.47 | $67.55 | $118.96 |
| 60 | $29.76 | $58.56 | $109.20 | $194.86 |
Sample No Exam Rates for A Female (10-year Term)
| Current Age | $100,000 | $250,000 | $500,000 | $1,000,000 |
| 35 | $6.97 | $8.98 | $11.96 | $15.48 |
| 40 | $7.91 | $10.62 | $15.11 | $21.50 |
| 45 | $9.89 | $15.15 | $20.20 | $38.19 |
| 50 | $12.56 | $19.76 | $33.88 | $59.60 |
| 55 | $17.81 | $28.20 | $50.03 | $90.96 |
| 60 | $24.31 | $40.75 | $72.65 | $132.86 |
To obtain an accurate quote based on your age, health, and gender, give us a call at 855-247-9555. If you're not ready to speak to an agent, you can also compare rates from dozens of insurance providers by using our free online form below.
How JRC Can Help You Find the Best Policy
JRC is an independent life insurance agency that represents more than 50 top-rated life insurance companies. By asking you a few questions about your health and coverage needs, our experts can quickly match you with the best option available.
Our impartial shopping services are free, and there no cost to apply for a policy. Give us a call today, toll-free at 855-247-9555, or you can request an instant quote using our form below. In less than a minute, you'll be able to compare rates from dozens of providers.
Clifford Pendell
Managing Partner and Co-founder
Cliff is a licensed life insurance agent and one of the owners of JRC Insurance Group. He has helped thousands of families of businesses with their life insurance needs since 2012 and specializes with applicants who are less than perfect health. In his spare time he enjoys spending time with family, traveling, and the great outdoors.
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