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Life insurance is vital to ensuring a solid financial future for your family. The payout from an insurance policy can cover everything from the cost of a funeral and burial to everyday expenses and outstanding debts.
Unfortunately, about half of U.S. adults don’t have life insurance, according to Buy Side. Cost is a concern, but many people avoid buying a policy because they don’t want to deal with the hassles of a medical exam. Thankfully, getting life insurance without a medical exam is easier than ever.
When an insurance company issues a policy, they take the risk that they’ll have to pay a claim when you die. They want to ensure you’re a good risk — i.e., you won’t die before you pay your share of premiums. To evaluate this risk in underwriting, the company may require a physical exam to assess your overall health.
The results of a comprehensive medical exam can determine whether you qualify for a policy and how much you’ll pay. The exam includes both a questionnaire and a physical examination.
On the questionnaire, you’ll answer questions about:
The physical portion of the exam aims to give the doctor a clear picture of your overall health. In addition to checking your height, weight, and blood pressure, the exam may include blood tests, imaging, and stress tests to ensure you’re a good risk.
Insurance companies may also collect information about you and your level of risk by reviewing your medical records, pulling your driving record, and requesting information from consumer databases.
The results of your physical examination are the most significant factor in determining what you pay for a life insurance policy. Insurers classify your risk in rating tiers:
To qualify for preferred plus, you need to have a healthy weight, no major health conditions, and no family history of death from cancer or heart disease. Most people fall into the standard or regular tier.
Applying for a life insurance policy that requires a physical exam can save you money if you're in good health. However, it’s not always an ideal solution. There are a few scenarios where no medical exam life insurance may be the wiser choice.
Some health issues can disqualify you from certain life insurance companies or products or result in exorbitant premiums. Some of the health issues that can have a significant impact on your health insurance rates include:
Other conditions, like high blood pressure, high cholesterol, anxiety, and asthma, can also influence your risk to a lesser degree. Smoking also makes a big difference to your rates; smokers will always pay more for a policy than non-smokers, according to Forbes. Insurers consider how well you manage your condition, the date of your diagnosis, and its severity when evaluating your risk, but investing in medical test-free life insurance eliminates the need for the company to investigate your pre-existing health issue.
If you’re looking at a policy with a lower payout to cover your final expenses after you die, life insurance without a medical exam is the most convenient option. Most policies marketed as final expense coverage don’t require a physical exam but still offer peace of mind that your family will have the necessary coverage.
The medical underwriting process takes time. It can sometimes take a month or longer to complete the paperwork, exam, and tests, during which time you don’t have any life insurance coverage. Life insurance without a medical exam typically takes only a few days to approve, and some companies even offer instant approval.
When you don’t want to undergo a medical exam to purchase life insurance, you have several policy types to choose from.
A simplified issue policy doesn’t require a physical examination, but you do need to complete a detailed questionnaire about your health and lifestyle when you apply. The insurer may also request additional information about your driving record and medical history from third-party sources as well. There’s no guarantee of approval, but for most people in average health, a simplified issue policy is an excellent way to get life coverage without a health check.
The pros include the following:
The cons include the following:
As the name implies, a guaranteed-issue policy is one that the insurer will approve without any health questions or physical exams if you fall within the eligible age range, usually between 50 and 80 years old. These policies build cash value over time and pay out smaller amounts to help your loved ones pay your final expenses. Guaranteed-issue life insurance policies also typically will not pay out death benefits in the first few years after you purchase the coverage; if you die during this period, your beneficiary may receive a prorated payment or just the return of the premiums you paid.
The pros include the following:
The cons include the following:
An accident protection policy pays your beneficiaries a lump sum if you die in a covered accident. It will not pay out if you die of natural causes.
The pros include the following:
The cons include the following:
Many employers offer group life insurance for their employees and pay the premium for you. Insurers set rates for these policies, which are usually term life, for the group as a whole, and because it is a health assessment-exempt life assurance product, you simply need to enroll with your employer.
Group life insurance policies limit the benefit payout to one or two times your annual salary. Your employer may offer the option to purchase a supplemental life insurance policy requiring a medical exam. Like the group policy, the health of the whole group determines the rate, so young, healthy people might be able to find a better option on their own.
The pros include the following:
The cons include the following:
Getting life insurance without a medical exam is a convenient way to obtain the coverage you need without spending time in a doctor’s office or worrying that your health status will lead to a denial or high premiums. However, before you assume that life insurance with no medical requirements is your only option, consider some of the facts about these policies:
Ultimately, the best life insurance policy depends on your situation, budget, estate plan, and family needs. If you are young and healthy, a traditional, medically underwritten policy may be the best choice because you can qualify for the best rates. If you have health issues or are older, you may consider a policy without medical requirements to get affordable rates.
If you’re shopping for life insurance without a medical exam, Insurdinary can help you explore all the options to find the one that works best for you. Use our simple online tool to get competitive quotes from leading insurance providers and compare policies. When you’re ready to enroll, one of our knowledgeable, licensed agents will walk you through the process and help you purchase your policy.
Do you have more questions about getting life insurance without a medical exam? Contact our team and get all the information you need to secure your financial future.