We live our lives as if we were guaranteed a certain amount of time on this planet. We plan our careers, spend years getting the right education, plan for the future our children, and more. In too many cases, though, those plans do not work out. Whether due to accident or illness, lives are cut short, and our loved ones are left alone.
Life insurance provides the peace of mind and protection that you and your family deserve, but what if you do not want to go through the standard physical exam most insurance companies require? The answer is life insurance with no medical exam, or a “simplified issue” policy.
You could be wondering why bother purchasing life insurance with no medical exam. Do you really need this form of protection? Isn’t it a significant expense? Actually, it’s not. According to the Insurance Information Institute, most people actually overestimate the cost of life insurance. That’s particularly true of Millennials, almost half of whom overestimate the costs by up to five times.
So, life insurance is not particularly expensive. But does it really offer the protection that you need? Yes, it really does. As Forbes points out, life insurance might not be sexy, but it is “a crucial element of sound financial planning.”
Too many people assume that “financial planning” is for those with spouses, children, grandchildren, or estates that will need to be distributed when they pass on. What if you haven’t yet found that special someone? What if you haven’t yet started a family? What if you’re living paycheck to paycheck and don’t have any sort of estate to leave behind?
In all of those cases, life insurance is a vital consideration. Why, you ask? Simply put, when you pass on, you still leave behind your debts. Student loans, credit card debt, car loans, home mortgages – you get the idea. All of those debts linger, and they could haunt your spouse or children if you were to die without life insurance. By purchasing no medical life insurance, you automatically ensure that your family has a way to handle those outstanding debts without draining their bank account.
It’s not just about married couples, or those with children. What if you own a business? Is there a plan in place to handle succession if something were to happen to you? Life insurance can help handle business liabilities in conjunction with business succession planning, ensuring that even if something were to happen to you, your business could continue.
From the information above, it should be easy to tell who needs no exam life insurance – everyone.
Obviously, life insurance with no medical exam differs from a conventional life insurance policy. In what ways, though? And, what impact will those differences have on your situation? Let’s take a closer look at how the average no exam life insurance policy might differ from a standard life insurance policy.
Perhaps the most important difference between no medical life insurance and standard life insurance is that you will most likely be limited to lower coverage amounts. The higher the coverage amount, the greater the risk the insurance company takes on. The more risk they take on, the more protection they need in order to issue you a policy. So, how much coverage might you be able to purchase without having to go through with a physical?
Really, there is no single answer. It varies from insurer to insurer. For instance, one insurer might have a range of $10,000 to $100,000, but another might offer $50,000 to $350,000 in coverage. It’s important to make an informed decision here, as the amount of coverage will determine how much protection your family has in the event of your death. Working with a qualified insurance agent with experience helping consumers find the right amount of protection for their needs is essential.
Another significant difference between life insurance with no medical exam and standard life insurance policies with an exam is that you will not be able to purchase whole life insurance. You will be limited to term life insurance.
What is term life insurance with no medical exam? Simply put, it is insurance coverage that you purchase for a specific period of time. If you do not use your coverage during that period, then you lose it at the end, and must purchase another period of coverage. In contrast, whole life insurance, which is generally only available with a full medical exam, covers you for your entire life without the need to renew your policy from time to time.
Which is better? Actually, neither outranks the other. They are different insurance products developed for specific needs and requirements.
While no exam life insurance might only be available as a term policy, and may have slightly lower coverage amounts, you’ll find that these policies do offer exactly the same peace of mind and sense of security that you’ll find with life insurance policies that mandate a physical exam.
Purchasing life insurance with no medical exam is actually a pretty simple and straightforward process once you have compared quotes from different insurers. However, there are some requirements. You will not have to visit a doctor to have a physical, but you will need to provide a range of information about your health history, as well as other facets of your life. You may be required to provide any of the following, depending on the insurer you ultimately choose:
Why choose to purchase life insurance with no medical exam? Actually, according to the Insurance Information Institute, half of all consumers in the US would purchase life insurance if there were no physical exam required. Why is that? There are quite a few reasons:
Time: Perhaps the single most common reason for consumers to want to avoid having a physical for life insurance is the time commitment required. It takes a significant amount of time just to compare insurance offerings form different companies, but you can expect to set aside most of a day if you’re required to go to a medical office for a physical examination. That’s a huge inconvenience, not to mention the impact it could have on your professional and personal lives.
Discomfort: Another reason people want to avoid having a physical is due to the discomfort. No one relishes the idea of sitting in a cold exam room, but it goes beyond this. Some insurers require that you have an EKG to verify heart health, while others might require you to provide a urine sample, or a cheek swab. Most of them require that you have blood drawn, as well. This ties back into the time requirement, as well, because those tests take time to complete, and then the information has to be sent to the insurer, who will then take yet more time to determine if the test results negatively impact your risk level.
Invasive: Finally, all of this is invasive. You’re forced to change your daily routine, missing time at work or with your family. You’re required to submit to a physical examination of your body, as well as medical tests.
Ultimately, the entire process of purchasing conventional life insurance can take a month or longer including waiting for all your test results to come back. That’s a long wait for something that’s supposed to benefit you. Not only is that inconvenient, but it might simply be unworkable. For example, you could be required to obtain life insurance very quickly to comply with a divorce decree, or to ensure that you can get small business funding.
With a no exam life insurance policy, none of that has to happen. Simply answer the questionnaire and provide the information the insurance company requires, and you’ll have a quote back in no time at all. That means no cold exam rooms, and no humiliating physical exam. It also means no painful blood drawing, and no need for any other type of testing. It’s simple, straightforward, and ensures that you get the protection and peace of mind you deserve without any fuss or hassle.
You Cannot Hide Health Problems
While life insurance with no medical exam can be obtained quickly and easily, this is not a route to consider if you’re worried about a preexisting medical condition and its impact on your health insurance. All insurers do their due diligence when determining your level of risk, and if they suspect that you are trying to hide a health problem, they will investigate further.
Like all insurance products, the cost of life insurance with no medical exam will vary by the amount of coverage you want to purchase. This is unique to each individual, and there is no one-size-fits-all policy out there. Your needs, requirements, goals, and personal situation will dictate the amount of coverage necessary, which will determine your out of pocket costs. However, as a general rule, the higher your coverage amount is, the higher your costs will be. That doesn’t mean term life insurance with no medical exam is expensive, though. Remember that most people overestimate the costs of life insurance in the first place. It’s actually quite affordable with a reputable insurer.
The first step in finding an insurer is to get no exam life insurance quotes from different companies. Again, no two insurers are the same, and you need to compare coverage amounts and terms to make sure that you’re getting the best possible policy for you and your family. That can be incredibly time consuming, though, even if you are able to request quotes online. Plus, there is no guarantee that you will be able to make an informed comparison of multiple insurance quotes if you’re not particularly familiar with life insurance in the first place.
Perhaps the best path forward is to work with an agent who specializes in life insurance. Jeff Pennington can help ensure that you get the right coverage amount for your needs through a reputable insurer that you know and trust. Call 877-221-6198 to discuss your situation and get no medical life insurance quotes, as well as advice and guidance throughout the entire process.