Have you been putting off purchasing life insurance due to your crazy schedule? Or maybe you have been nervous to take the medical exam because you’re afraid of needles?
You are not alone and we can help! We may be able to provide you with the perfect solution for your life insurance needs: a no medical exam term life insurance policy.
Quick Article Guide
1. We Can Help You With Your Non-Medical Term Life Insurance Too
2. What Types of Life Insurance is Available Without a Medical Exam?
3. How do I Apply for and Purchase a “No Exam” Life Insurance Policy?
In fact, some of our client’s in excellent health actually get approved in just a few minutes. The hustle and bustle of today’s society can be overwhelming– we are constantly connected to our phones, regularly checking emails, and when unexpected meetings pop up out of nowhere, it’s hard to set aside an hour or two to have a nurse draw your blood and check your vitals.
Even though these are the new norms, we cannot forget about our loved ones that depend on us financially.
Although there is no amount of money that can ease the emotional stress of losing a loved one, having cash available can help alleviate some of the financial stress that can be associated with this difficult time.
No Exam Life Insurance Policies – People We’ve Helped
In our experience we find that there are certain characteristics of people who benefit the most from no exam life insurance policies. These clients include, but are not limited to:
1. People who have extremely busy schedules in which they don’t have time for a nurse to come by their home or office and perform the exam. (These policies are perfect for truck drivers and traveling businesspeople.)
2. Those who need life insurance in a hurry, either by court order or to collateralize a SBA loan.
3. People who hate needles or have “white coat syndrome,” which is also known as fear of doctors. These clients also include those who do not want to have to deal with the stress of having their blood pressure taken or blood drawn.
4. People who only need less than $500,000 of insurance. A handful of life insurance companies offer competitive rates without a medical exam if the coverage amount is less than $500,000. If you need to purchase more than $500,000 of life insurance coverage, we recommend completing a free exam. For policies for more than $500,000, the rates are not as competitive because very few life insurance companies are willing to offer this option due to the large financial risk that is involved.
If you happen to fall into one of the categories above, life insurance without a medical exam is probably a great choice considering that most applicants will receive an approval within 72 hours. This is quite a contrast to traditional term life insurance that can take up to three months for an approval; however, convenience comes at a cost because most non-medical term policies cost about 30% more than those that require a medical exam.
It’s important to note that only a few companies offer no medical exam life insurance policies, and unfortunately, these policies tend to be limited to a death benefit of $500,000 or less.
Please note that no-exam life insurance policies are usually limited to applicants between the ages of 21 and 65. After the age of 65, no exam term life insurance is very expensive and are typically limited to a death benefit of $50,000 or less.
If you need more than $500,000 of term life insurance, or if you are 65 or older, you may need to complete an exam for your policy. Depending on the state you live in, we may be able to offer you up to $1,000,000 in term life insurance coverage without a medical exam; however, these policies tend to be about twice as expensive as an identical term policy with an exam. You may also be able to layer, or buy, multiple term life policies of $500,000 or less that do not require an exam. This allows you to obtain the amount of coverage needed. Please feel free to give us a call and one of our agents will be able to provide you with your best options.
The most common life insurance options that do not require a medical exam include:
Term Life Insurance – If you’re between the ages of 21 and 65 you can purchase a policy without an exam for up to $500,000 in death benefits. The rates for term life insurance policies are fixed and are available in 10, 15, and 20 year terms.
Guaranteed Universal Life Insurance (GUL) – Guaranteed Universal life insurance policies offer a fixed death benefit of up to $500,000 with a fixed monthly cost guaranteed not to change as you get older. GUL’s are available for applicants between the ages of 21 and 65, and also known as term-to-100 policies because these policies offer rates and coverage that is guaranteed until the age 100 or later. These policies are an excellent alternative to expensive non-guaranteed universal life insurance policies because they are not a risky investment and do not require additional funds to build a cash value.
Level Death Benefit Whole Life – These policies tend to be expensive, but if your health is average or better, they are the most convenient to buy. Even though level death benefit whole life insurance policies are usually available to people in better than average health, a medication for blood pressure, cholesterol, or both will not prevent you from being approved. In fact, we have also received approvals for well-controlled type II diabetics. These policies are available for up to $50,000 in death benefits and they usually expire at age 80. Remember these policies are pricey so if you are looking to purchase one, we will usually recommend a GUL in this situation.
Guaranteed Issue Life Insurance (GI) – Guaranteed issue policies offer up to $25,000 in death benefits for those who are between ages 50 and 85 and have serious health issues.
These policies are the ones that you normally see advertised on TV by celebrities or AARP and they tend to be expensive for the amount of coverage you receive because “no health questions are asked.”
Graded Benefit Whole Life Insurance – Those with very serious health issues such as type I diabetes, cancer, or heart disease, may qualify for up to $25,000 in death benefits. Although there is a two year waiting period for beneficiaries to receive the full death benefit and the cost of these policies are high, their premiums are guaranteed for life. Read more about the pros and cons of whole life insurance here.
What are the “Cons” or Downfalls of Purchasing a “No Exam” Life Insurance Policy?
As with anything, there is a cost for convenience. Depending on your age and medical history, a non-medical life insurance policy is roughly 30-50% more than a traditional life insurance policy with a health exam. The reason being is that life insurance companies look at these policies as a larger risk since they cannot review your current health through blood work and urine samples. Companies also keep in mind the rare instances where there are mistakes in client’s medical records which can result in a higher premium or the client being declined.
If you’re in average or better health, or even if you have a few health issues, buying life insurance with a medical exam will probably save you money. Your labs may even work in your favor if the carrier finds any issues in your medical history. When an insurance company cannot review your health, they have to be more conservative with your rates to protect their risk.
Some of my clients have the misconception that when they purchase a “no exam” life insurance policy, the company will automatically mail them a policy. Aside from guaranteed issue life insurance policies (GI’s), or policies with a waiting period, almost all insurance policies will still review your medical records from the MIB (Medical Information Bureau) before issuing a policy to you. In addition to the MIB, the insurance company will also review your pharmacy records and motor vehicle record. We always recommend being honest with your agent about any health issues because the insurance companies are very diligent with underwriting and failing to disclose health issues or treatments will delay your approval or cause your policy to get declined.
When Does My Coverage Begin? How Long Until I am Fully Covered?
Some of the “no exam” policies that are offered may provide immediate coverage after the first premium is paid while others have a period in which either no death benefit or a limited death benefit is paid. In addition to waiting periods, there are also some no exam policies that will raise your premiums as you age, (usually every five years), and many of these policies will expire at age 80. If you are looking to purchase one of these policies, be sure to clarify the details with your agent when you apply. The no exam term policies that we offer do not have a waiting period, and their rates do not increase every five years.
It is also important to be aware of what type of coverage you’re actually purchasing. We find that there are some agents in the industry that offer their clients an accidental death life insurance policy rather than a policy without a medical exam. These accidental death policies provide very little protection because they will only pay a death benefit if the insured dies in an accident. These policies will not provide a death benefit if the insured passes away from anything health related. Please keep in mind the odds of dying in an accident are extremely low, usually less than 2% depending on your age. Make sure to ask your agent if the policy you are purchasing will payout immediately, despite the cause of death.
The process begins by contacting a licensed agent and answering some health and lifestyle questions. If you have serious health issues and you are applying for a guaranteed issue (GI) policy, no health questions will be asked, but an agent will need some basic information for your application. By asking you a few questions upfront about your health and lifestyle, your agent will be able to provide you with accurate rates. The insurance company you apply with will review your medical records electronically before approving your policy.
For accurate quotes, it’s important to be as upfront as possible with your agent.
After your application is submitted and before approving your policy, the life insurance underwriters will check your records via the Medical Information Bureau (MIB). In addition, they will electronically review your pharmacy records for the last five years. The insurance company will also require your driver’s license number to review motor vehicle records (MVR). A speeding ticket or two is not an issue, but a DUI or a reckless driving charge will probably result in a declined application. Please remember that if you have been declined for life insurance in the past, this will show up in your background check, so notify your agent beforehand.
If everything goes smoothly, we usually see an approval in as quickly as two business days. After this your policy will be mailed out and you should receive it within a week.
Give Us A Call, We Can Help!
If you still have questions about the process of applying for a life insurance policy without a medical exam, give JRC Insurance Group a call. We will be happy to answer any of your questions and help walk you through the process.
We work with over 40 top-rated life insurance companies and our agents are experts in finding our clients the best life insurance policy for an affordable price. Give us a call today, we will be happy to help! Toll-free: 855-247-9555.
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