No Medical Exam Life Insurance
While comparing life insurance quotes and coverage, many individuals will notice that most providers require a medical exam before issuing insurance. The medical exam ensures that the individual does not have a pre-existing medical condition and is a common part of term life insurance and many whole life policies. While many insurance providers ask for a medical exam, some companies have policies without an exam.
Basics of the Policies:
A term life insurance policy that allows consumers the option to forgo a medical exam has a few key differences from the basic insurance. By learning the facts about how it differs from policies that require an exam, it is easier to make an educated decision about whether the policy is appropriate for personal needs. Some companies offer up to $250,000 of life insurance and other as much as $500K life insurance can be purchased without the completion of a medical exam.
The policy is usually similar to any other term life policy. A beneficiary is issued funds if the individual dies within the term. The funds issued to the beneficiary depend on the selected policy amount and any conditions. In most cases, term life insurance will issue funds regardless of a cause of death unless the policy has specific requirements, such as accidental death. The only requirement is that the death occur within the term of the policy.
Term life insurance allows the individual to select a time-period for insurance, such as 20 year term life insurance so that children reach adulthood, and the insurance does not pay out if the term is past and it has not been renewed.
The key difference between policies that require a medical exam and are underwritten for life-expectancy risk and policies that do not is the price. A policy that does not have a medical exam will cost more than other policies due to the potential risk of a medical condition or other problems that shorten life expectancy.
Benefits of No Medical Exam Insurance:
While the insurance is not for everyone, a no medical exam life insurance policy has some key benefits. Making an educated decision about the appropriate policy starts with learning the advantages and disadvantages of the term life policy.
The benefit that most individuals are interested in with a no medical exam policy is the time required to obtain coverage. A policy that requires an exam will take as long as four to six weeks before the policy begins because consumers must first see a doctor and have reports sent to the insurance provider. The insurance provider will then start the underwriting process and give a final cost to consumers. Consumers fill out the final paperwork and then coverage begins.
Those who opt to get insurance without a medical exam will find that the process is much faster and simpler. Paperwork is filled out and the final cost is usually issued within one to two days. Consumers then complete the paperwork and coverage starts. The benefit of a short wait is appealing to those who are concerned about death or who worry about family if an accident occurs.
Beyond the convenience of a shorter wait for coverage, the policy is excellent for those who are denied due to health conditions. Pre-existing conditions, such as diabetes, high blood pressure, high cholesterol or sleep apnea disorder, can result in high coverage costs or denied coverage. The insurance company considers the individual a high risk due to medical conditions or high risk activities they may engage in, such as sky diving or rock climbing. These could cause a shorten life expectancy.
A company that does not require medical exams will not ask about pre-existing conditions and whether or not you are current out of work on disabilty in order to assess how healthy you are. As a result, it is possible to gain coverage when other companies have denied coverage due to medical reasons.
The ease of getting the insurance is the key benefit of term life without medical exams. The exams take time, require doctors visits and might result in getting denied after the paperwork is finally completed. This type of policy is guaranteed because health conditions are not a factor in the decision to provide coverage.
Disadvantages of Coverage:
Despite the positives of getting coverage without a medical exam, individuals and families will have some downsides to consider. The disadvantages of the coverage are part of making a decision based on personal requirements for coverage options.
The key disadvantage is the additional cost. In most cases, the price of coverage is higher than the cost of options that require a medical exam. The cost of term life insurance without a medical exam will often depend on factors like age, whether an individual smokes cigarettes and the length of the term selected. It will be higher than the same policy with an exam, but the guarantee of acceptance is sometimes worth the slightly higher cost.
Another downside is finding the appropriate policy for personal needs. Every policy is different and not all policies that do not have a medical exam will fit individual requirements.
Life insurance does not always require a medical exam. The key is finding a policy that right for personal needs and that fits an individual budget.