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Many life insurance companies use medical underwriting to assess each applicant's health status. This type of research involves asking questions about health and lifestyle. The insurance company you apply to may also request a physical examination by a medical professional, such as tests or blood and urine samples as proof of your health status.
If you're nervous about undergoing a physical exam or think the process is invasive, you might consider a no-medical-exam life insurance policy, such as a funeral insurance policy. This covers your end-of-life expenses and doesn’t require a medical exam.
As with any type of life insurance, non-medical examination funeral policies have advantages and disadvantages to consider before you purchase them. You want to protect your loved ones' finances upon your death. This guide on medical exam-free funeral insurance might help.
Funeral insurance, also called burial or final expense insurance, is a whole life insurance policy. The insurer designs this policy to cover your financial obligations and final expenses when you pass away.
Despite the name, funeral insurance is still a life policy. If you're a burial insurance policyholder, your named beneficiaries will get a tax-free cash payout from your policy upon your death.
Most people choose these kinds of life insurance policies to protect their loved ones from the rising costs of funerals so that there are enough funds to pay for final expenses, like a funeral, memorial, and medical costs. During an emotional time for your loved ones, this kind of support can provide comfort and peace of mind.
Since burial policies are primarily for final expenses, insurance companies pay them out quickly (within 48 hours after getting the required documentation). Your beneficiaries can then use that money for anything they need to take care of or save the remaining funds.
One of the reasons people like funeral insurance policies, aside from the fast payout for final expenses, is that it comes with guarantees. One of these benefits is that you can expect to pay the same premium for the same death benefit without monthly payment increases, expired benefits, or a decrease in coverage. Another benefit surrounds the lack of medical exams.
Unlike a typical life insurance policy, most funeral policies won't require you to take a physical medical exam for the insurance agency to approve your application. You won't have to speak with a nurse or visit a physician who may do the following:
These medical exams usually last for about 30 minutes. Depending on your age and sex, you may have to take other tests, like a male-specific prostate exam.
Medical exams for life insurance are necessary so the insurance agency understands your health status and can reasonably measure the risk they'll take by insuring you. If they uncover a pre-existing health condition like diabetes or heart disease, they could deny your application, which limits your insurance options.
With “no medical exam” insurance options, you won't have to endure these physical exams or worry about pre-existing conditions affecting your ability to get insurance. The application process will be faster. You can also improve your chances of immediate approval with little to no waiting period before the insurance kicks in.
A burial policy with no doctor's exam needed isn't the same as a funeral policy with no health questions. Even if you apply for a burial policy with no medical exam, the insurance agency may still require you to answer a few questions about your health.
Usually, these questions are a way for the company to assess your health status so that they can judge the company's risk without making you have a physical examination.
It’s important to note that most funeral insurance policies without medical examinations will only offer modest coverage amounts (from $1,000 to $50,000). If you require more coverage, you may need to apply for a policy that relies on medical underwriting (and the corresponding medical exams).
However, if you're ready to explore no-exam burial insurance, why not apply for a simplified issue or guaranteed issue policy?
Simplified issue insurance gives immediate coverage upon the approval of your application. For no-medical exam funeral insurance, a simplified issue policy won't require a trip to the doctor's office or a home visit from a nurse. Instead, you'll have to answer questions about your current health status and lifestyle.
Questions may pertain to the following:
If the insurance company approves you for simplified issue coverage, you won't have to deal with a waiting period, either. You'll also enjoy immediate coverage for your natural or accidental death.
Insurance companies know people who go for this kind of policy are likely a higher risk for them to insure than, say, a healthy young adult. That’s why simplified issue insurance death benefits are usually lower than traditional policies. The premiums tend to be slightly higher.
With guaranteed issue life insurance, you won't have to answer any health-related questions or undergo a medical exam. Instead, you will have guaranteed approval for your final expense insurance policy, regardless of your health status and pre-existing conditions.
Despite these advantages, guaranteed issue policies have drawbacks. For instance, you'll get guaranteed approval but may have to wait at least two years before the policy takes effect. The agency will refund your premium payment if you pass away within this waiting period, but your beneficiaries won't receive death benefits.
Cost may be another problem if you get no-medical exam funeral insurance. Since insurance companies assume the highest risk with these policies, they protect themselves by charging the highest premiums for them. They also offer only modest death benefits, with coverage often ranging from $2,000 to $25,000.
Guaranteed issue final expense insurance may still be worth considering if you have a serious medical condition, terminal cancer, or dementia.
Should you consider a funeral policy or other no-medical options? While the absence of a health check might seem appealing to many people, this feature brings both advantages and disadvantages.
Key advantages of medical exam-free funeral insurance include the following:
For many people, the biggest drawback of no-medical-exam insurance is the low coverage maximum. You could apply for a policy with a higher payout, but you'd likely have to undergo a medical exam.
The waiting period could also be a problem if you want immediate coverage. Scams advertise guaranteed-approval final expense insurance plans with no waiting periods, but guaranteed life insurance with instant coverage just isn’t financially feasible for an insurer. All legitimate guaranteed issue funeral policies will have a two or three-year waiting period.
If you want instant coverage, why not consider a simplified issue policy? Though you won't have to do a medical exam, you must complete a health questionnaire. Simplified issue funeral insurance with no medical exam is usually cheaper than the guaranteed issue variety but not as cheap as those with medical checks and more in-depth underwriting.
Almost anyone can apply for and get approval for no-medical exam burial insurance.
The people who benefit the most from these policies are seniors aged 50 to 85 and those with pre-existing or chronic health conditions. Traditional life insurance for these groups tends to have restrictions, which make high-risk groups ineligible for coverage.
This no-medical-exam kind of policy is also beneficial to those with a fear of needles, blood, injections, and so on. Traditional life insurance policies usually require health exams that do involve blood work and labs.
Funeral insurance with no physical assessment could be your answer to paying for your final expenses and easing your family's financial burden when you pass away. These policies don't require a medical exam but can require you to complete a simple health questionnaire. These policies often come with fast approval and modest death benefits for everyone, including seniors and people with pre-existing conditions.
If you're ready to explore burial insurance policies with no medical exam, consider comparing quotes through Insurdinary.
At Insurdinary, we help people of all backgrounds find the best insurance products to fit their needs and budget by comparing the best offers across multiple insurance agencies. Let us help secure your family’s financial future. Start comparing quotes with Insurdinary today by completing our convenient online quote form.