Everything you need to know – Robb Report
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Be honest: you are not a fan of all the punches and inducements during a medical exam for a life insurance policy. Fortunately, more and more life insurance companies are abandoning their medical examination requirements and offering coverage without it. This is called no exam life insurance.
Instead of a review, a life insurance company will often rely on other medical and personal information it can collect about you.
No-exam life insurance is popular because of its convenience and speed, says Matt Burke, director of operations for life insurance, disability insurance and advanced planning in the Policygenius insurance market . The blanket appeals particularly to younger and healthier people, he says.
If you’re looking for the best no-exam life insurance, here’s what you need to know.
Instant No Exam Life Insurance
Just as you can buy everything online, from cars to the grocery store, no-exam life insurance policies can be purchased quickly online.
With an instant policy, you can find out in seconds or days (depending on the provider) whether you’ve been approved for coverage. There may not be a medical exam, but that doesn’t mean the insurer won’t know a lot about you. Insurers can access a wealth of information through services that collect and distribute data, including:
- Electronic health records
- Your prescription drug history
- Your MIB Group report, which contains information about your individual life insurance claims over the past seven years and other data
- Your driving record
- Public records such as criminal history
- Risk scores that combine information, such as credit and driving history
Authorization to access this data (when required) is given by you when you submit the request. (Read the fine print.)
Some of the no-exam term life insurance options include:
- Brighthouse SimplySelect. This policy is available through Policygenius and was co-developed by the two companies. The maximum no-exam coverage is $ 2 million, available in 10, 20, or 30-year terms.
- Ethos. Maximum no-exam coverage is $ 1 million with terms of 10, 15, 20, or 30 years.
- Fabric. Fabric focuses on the financial protection of parents. No exam coverage is available up to $ 1.5 million in 10, 15, 20, 25, and 30 year term choices.
- Jenny life. Jenny Life was created with a focus on life insurance for moms (they also sell coverage for dads). Maximum no-exam coverage is $ 1 million with term choices of 10, 15, 20, or 30 years.
- Ladder. The Ladder Policy allows you to change the amount of your coverage at any time as your life insurance needs change. The maximum coverage without exam is $ 3 million. The duration choices are 10, 15, 20, 25 or 30 years.
- LincolnAccel Financial Term. Maximum no-exam coverage is $ 1 million with terms of 10, 15, 20, or 30 years.
- The life of Sagicor. The maximum no-exam coverage is $ 500,000 for instant coverage for those aged 18 to 65, and up to $ 1 million for instant coverage for those aged 18 to 45. The duration choices are 10, 15 or 20 years.
The length of terms offered and the maximum coverage amounts may vary by age, but in general, no-exam life insurance is available to people under the age of 60.
âLife insurance prices get more expensive as you get older, so buying while you’re young and healthy is a good way to get a more affordable rate and you’ll be more likely to qualify for a life insurance policy. police without review, âsays Burke.
While no-exam life insurance policies are convenient, their maximum coverage limits are usually much lower than policies that require a medical exam. A young parent who wants to purchase life insurance to replace income, for example, may very well need more than a million dollars in coverage.
Some no-exam policies are competitively priced compared to fully-written policies that require a medical exam. Whether you want instant life insurance or don’t want a medical exam, be sure to get quotes from multiple life insurers.
Also be sure to consider the benefits offered. An instant no-exam policy can be alluring, but don’t sacrifice the benefits of coverage you might wish you had later. Ask these questions about a no-exam life insurance policy:
- Is there an accelerated death benefit? This allows you to draw on your own death benefit if you develop a terminal illness.
- Can you convert term life insurance policy to permanent life insurance policy? This gives you the option of switching to a permanent policy later, especially if poor health prevents you from purchasing a new policy in the future. For example, you might be able to convert to a universal life insurance policy up to age 70 (times and options for conversion vary by company).
- Is the policy guaranteed to be renewable? This option will allow you to continue coverage beyond the level term period. Renewals will likely come at a much higher price, but the option allows you to maintain coverage if you still need life insurance.
- Can you change the sum insured? Some policies allow you to reduce coverage, which is a good option if your life insurance needs decrease later. Ladder’s life insurance allows you to increase or decrease the face amount as many times as you want, at no cost.
Life Insurance Without Traditional Business Review
The availability of no exam life insurance is also increasing among traditional insurance companies. Using a process called accelerated pricing, they can process life insurance claims without a medical exam in just a few days and issue coverage. This is especially true for younger and healthy applicants. If you’ve had any health issues, you’ll probably still need a life insurance medical exam.
Concerns that might prompt a medical examination include:
- Serious illness or medical conditions such as heart problems
- Smoke profusely
- Heavy drinking
- Certain prescription drugs
- Advanced age
An experienced independent life insurance agent can find you no-test options and help you determine if a no-test policy will give you the best coverage and pricing. In some cases, you might be better off going through a medical exam and a more traditional application process.
Guaranteed issue and simplified issue life insurance
The guaranteed issue and simplified issue life insurance offers another option for purchasing a policy without exams. These types of life insurance are often intended for people who have serious health problems or who only want a small policy to cover funeral costs. You may see them advertised on TV as life insurance that you cannot be turned down for.
Guaranteed issue policies are generally best for people who want life insurance but have exhausted all of their other options due to poor health. This type of coverage may be suitable if you:
- Have medical conditions that make it difficult or impossible to purchase other types of life insurance
- Have a very small budget for life insurance
- You don’t mind having a low amount of coverage, like $ 25,000
- You don’t mind having a phased death benefit, which means beneficiaries don’t get the full payment if you die within the first two or three years of owning the policy.
Simplified issuance policies also do not require a medical examination. You may need to answer a few questions about your health and you may be turned down. Some simplified issue policies may have a phased death benefit.
But you will likely get a quick response as to whether your streamlined issue request has been approved. Coverage can be limited to $ 100,000 or $ 250,000, which is not enough for a person with a young family who purchases life insurance.
John Egan is a freelance writer, editor and content marketing strategist in Austin, Texas. His work has been published by Experian, Bankrate, National Real Estate Investor, US News & World Report, Urban Land magazine, and other media.