Many insurance companies offer a term life insurance policy without having to take a medical exam.
Is this really the best route to go?
Let’s look at the pros and cons so you can make an informed choice.
What Is Life Insurance Without a Medical Exam About?
Every insurance company requires that you take a medical exam before you can be approved for most insurance policies including both term and permanent policies.
The purpose of the exam is so they assess your health with respect to your life expectancy. By getting a clear picture of the current and future prognosis of your health, they can rate you and set the premium they will charge.
These exams do not cost you anything and they are relatively non-intrusive. However, many people baulk at the thought of having to take time off for these exams or might be under the impression the exam will cost them money.
Another problem with traditional policies is that they can take up to several weeks before you the approval process is completed.
As an alternative, many insurers are now offering term life insurance policies which don’t require a medical exam. You simply apply, complete a brief questionnaire and are either approved or declined.
But, there’s some crucial information you need to take into account before you jump on the band wagon, so let’s look at both the pros and cons of getting life insurance without a medical exam.
Pros of Life Insurance without a Medical Exam
The upsides of getting a life insurance policy without a medical exam are:
1. Faster Approval for a Life Insurance Policy with No Medical Exam
People are impatient today and they like things to happen quickly without having to wait. You can get approved for a policy without a medical exam in as quickly as 24 hours.
Many business people need life insurance when they apply for a business loan such as a Small Business Administration (SBA) loan. Most lenders require that the loan is insured to secure the loan to ensure that it can be re-paid. Even many personal loans may require that you be insured with a life insurance policy before they will approve you.
The problem is that many people simply can’t afford to wait several weeks to get approved for a traditional life insurance policy.
2. No Medical Exam Life Insurance Is Convenient
Life is hectic and many people have busy schedules. If you’re healthy right now and want a policy within 1-2 days then the simple convenience of applying, completing a brief questionnaire is quite appealing because these policies are very handy and easy to obtain.
3. Serious or Other Health Issues
You might not have had a medical exam in several years and may have developed health issues such as Diabetes, or have high blood pressure, high cholesterol since your last visit to your doctor. You could be engaging in a high risk occupation or hobbies. You may have a serious health issue which can result in a very expensive premium or be declined altogether so no medical-exam life insurance might be your best option.
4. No Needles Required
Some people are very squeamish about being poked with a needle, and a no-medical exam policy lets you avoid having to undergo this uncomfortable dilemma.
So, what’s the downside?
Cons of Life Insurance without a Medical Exam
If it sound too good to be true, then there has to be a catch right? Let’s look at the cons which include:
1. Life Insurance without a Medical Exam Costs More
You didn’t really think you could simply get a policy without a medical exam that costs the same as one that requires an exam did you?
If you did, then you are wrong.
The whole premise around life insurance is about risk. A medical exam exposes the health risk that the insurance company is going to assume. Buying a policy without a medical exam means the insurance company is assuming much more risk.
You can end up paying as much as 3 times more for a policy without a medical exam. So, if you could have got a $200,000 policy for 15 years and a premium of $15.00 per month with a medical exam, it could cost you as much as $45.00 for the same policy without a medical exam.
Let’s look at the math:
Life insurance with a medical exam – $15.00 x 12 months x 15 years = $2,700.00
Life Insurance without a medical exam – $45.00 x 12 months x 15 years = $8,100.00
That’s $5,400.00 out of your pocket. Why is it so much more? It’s simply because they don’t have any medical information about your health and assume more risk to insure you.
2. Shorter Terms and Less Coverage for Life Insurance without a Medical Exam
Another drawback is that the amount of death benefits you can buy is much more limited and most insurers won’t offer more than a $250,000 policy. If you need a larger policy then you’re out of luck.
Also, the terms they offer are more restrictive depending on your age. Mainly, you cannot get more than a 15 year term if you’re age 60 for a policy without a medical exam for example. With a traditional policy with a medical exam you can get a 20 year term up to age 69.
Learn More about Life Insurance without a Medical Exam
You always want to talk to an independent agent like myself. We can access and research dozens of companies so you are assured we will find the best policy at the most affordable rates. If you have health concerns, don’t let that dissuade you because we can give you valuable advice and help you to find a policy that suits you.
Whatever your needs or questions then please call me direct at 855 – 247 – 9555.