Some people want life insurance but refrain from giving medical examinations. The good news is some policies offer insurance without having to sit for medicals. However, it is believed that no-exam policies have become overpriced.
As per a study, around 78% of respondents would not pay more for a no medical exam life insurance product. Considering the growing popularity, the companies are forced to avail more competitive prices. An extensive set of people have been drawn to this unconventional method for various reasons.
Understanding No Exam Insurance Policy
Traditional life insurance requires a person to sit for a medical examination. It includes weight and height measurements, blood and urine sample collection, etc. Some people see this as a burden and want to avoid the same. This is where no-exam insurance can be useful. With this type of insurance, one can get coverage without having to take a physical test.
It is generally suitable for older people ready to pay higher premiums. People looking for lower coverage limits also get fascinated by the idea of a no-exam policy. Some companies can provide instant policies depending on the information provided. An individual will have to complete a questionnaire regarding his and his family members’ health history.
Types of No Exam Insurance Policy
Simplified Issue
The simplified issues policy does not require you to sit for a medical exam, but you need to fill out a health-related questionnaire. The information will include your current and past health conditions. The health conditions of your biological family followed by recent hospitalization if any.
You will have to specify the smoking history and drug usage details. They might also note if you have higher-risk hobbies like sky-diving. The majority of simplified policies offer coverage of $ 100,000. The exact amount and the premium prices will depend on factors like age, gender, and desired insurance length by the applicant.
Guaranteed Issue
The guaranteed life insurance policy is easy to approve and does not qualify you on the basis of your health history. The approval is mainly guaranteed if a person meets the requirements of the agents.
It is specifically designed for older adults between 50 and 80. However, some have increased the limit to 85. If the advanced age and severe health issues have been obstructing the standard policies, this is your chance to grab one. This policy category will offer a lesser coverage limit featuring a graded death perk.
Accelerated Underwriting
Another type of no exam insurance includes accelerated underwriting life insurance. In this case, the health risks are assessed using AI tools rather than sitting for physical examination. People with good health and sound finances can receive coverage of up to $ 1 million in a few minutes.
However, family history regarding serious illnesses plays a deciding factor. The agents will scrutinize your credit reports to check on the defaults. Items that may indicate poor mental and physical health would come under the scanner immediately.
Final Thoughts
The no-exam life insurance is an excellent way for people to get quick access to insurance. The process is less challenging compared to the traditional one. However, one needs to get in touch with a reliable insurance company to get things done smoothly.
Take some time and think about your goals and requirements. The cost of the insurance will depend largely on your goals. Find an agent who meets your specifications and start with the no-exam life insurance process. The process might not require a physical exam but still needs attention.
