iQuanti: Many traditional life insurance policies require you to complete a health questionnaire and undergo a medical examination as part of the life insurance application process. If you are in poor health, smoke, or have a terminal illness, it may be more difficult to get approved for one of these plans.
Many life insurance companies offer no-medical policies. These plans tend to be more affordable and take less time to obtain, so you may be able to get coverage quickly and give your loved ones the financial security they need. Let’s take a closer look at who should get no exam life insurance and some of the types of policies available so you can compare. life insurance quote and find a plan that can protect your beneficiaries if you die.
Who should buy life insurance without a medical exam?
Medical history is one of the main factors insurers look at when deciding whether to approve you and how much premium to charge. Thus, traditional life insurance policies may be more expensive for the elderly and those in poor health or with a family history of health problems. Additionally, the medical underwriting process can be time-consuming, leaving you uninsured as the company analyzes your test results.
This is where no medical exam life insurance can help. When issuing this type of policy, the insurer will not weigh your medical history or current health conditions. These policies tend to have smaller death benefits, but the premiums are quite affordable and you can get your policy much faster.
Types of No Medical Exam Life Insurance
Here are two types of life insurance policies that do not require a medical exam:
End-of-stay expense insurance
End-of-life expense insurance is a type of small whole life insurance policy designed to help beneficiaries cover your end-of-life expenses, such as medical expenses and funeral expenses. The death benefit is lower than a traditional whole life policy, but it provides lifetime coverage and the premiums are much lower than a traditional whole life policy.
Final expense insurance policies may also include a cash value growth component. A portion of each bonus is paid into this component, which grows at a fixed interest rate. Once the cash value becomes large enough, you can:
- Remove: You can withdraw part of your cash value. Keep in mind that this may reduce your death benefit and you may have to pay taxes on the winnings.
- Borrow from it: You can get a low-interest, no-credit-check loan from your cash value. There is no fixed maturity date, but interest is added to the balance and your policy lapses if the loan exceeds the cash value.
- Surrender of the policy: You can get your full cash surrender value less surrender charges if you surrender your policy. Any winnings may be subject to taxes.
Guaranteed issue life insurance
Guaranteed issue life insurance is a small whole life insurance policy that you can get without a medical exam. With this type of policy, the death benefit is smaller and premiums tend to be higher than life insurance plans with similar coverage amounts. If you want to provide additional financial protection for your loved ones, but you don’t qualify for a policy that offers more extensive coverage, guaranteed issue life insurance may be a good option.
Sometimes guaranteed issue life insurance policies have a waiting period during which you pay premiums, but the policy is not yet in force. If you die during this waiting period, your insurer will refund the premiums to your beneficiary plus interest. Guaranteed issue policies generally also have cash value components.
Get the coverage you need without a medical exam
No-medical life insurance policies can help seniors and those in poor health get affordable coverage much faster than traditional policies. End-of-life expense insurance can work well if you want to help your loved ones cover end-of-life expenses, such as funeral and medical expenses. Guaranteed issue life insurance is another option for getting life insurance without a medical exam.
No matter which life insurance plan you choose, each insurer may offer you different quotes for the same type of policy. Shop around and get multiple quotes to get the coverage you need at an affordable rate.