Your mortgage or loan just got approved but your banker just told you need life insurance as collateral. Applying for a traditional life insurance policy could take weeks or months but a no exam life insurance policy could be approved in a few days if you qualify.
It’s no surprise that no exam life insurance is becoming one of the hottest trends in the insurance industry. For parents looking to skip the traditional way of purchasing a policy, a non-med policy can be perfect way to provide:
- Family Income Protection
- Divorce Settlement Agreements
- College Funding
- Mortgage Protection
- Final Expenses
- Personal Debt
- Business Continuation
In this article, you will discover:
- The disadvantages/advantages of no exam life insurance for parents
- 3 of the biggest misconceptions
- Is a no exam policy right for you?
So let’s get started
Disadvantages of no medical life insurance
The biggest disadvantage to a life insurance policy that doesn’t require an exam is it’s more expensive. An insurance company is taking a bigger risk by not fully evaluating your health. Thus, more risk equals more money.
Limited coverage amounts: If you need a large sum of coverage, forget about no exam life insurance. Coverage is limited with most companies up to $400,000 or $500,000 maximum.
Applying for life insurance without a medical exam takes the hassle out of getting a policy. It takes away the common excuses of, “I don’t want to give all that information,” or “I don’t want an exam,” or “I don’t have the time.”
Getting a no medical exam policy still requires that you fill out an application and provide information about your health and financial history but the application is simplified or shorter.
Want to know the best part?
• Say goodbye to needles or prodding
• Urine samples are not required
• Just say no to insurance companies snooping through your medical files
• In a hurry? Fast approval – Usually approved in a few days
The insurance company uses the Medical Information Bureau (MIB) which provides information to them about your previous medical conditions, health issues or prescriptions. The MIB is a service that just about every insurance company subscribes to and contains health information on anyone who has ever been to a doctor or health facility.
Misconceptions Parents Might Have About No Exam Policies
#1: Since there is no medical exam, anyone can qualify for a policy.
This is probably the biggest misconception for parents in need of life insurance. In order to get a policy, you need to be in reasonably good health. If you have high blood pressure, high cholesterol, diabetes or other common health issues it will be difficult qualifying for a policy unless these conditions are under control by medication, diet and exercise.
#2: No exam policies do not provide enough coverage.
Not true. Coverage amounts can start as low as $5,000 and go all the way up to $500,000 with some companies that specialize in this type of coverage.
#3: Whole life policies are the only options available
Also not true. For some parents over the age of 70 whole life is the only option. But for younger parents between the ages of 21 to 65, term life is available. High risk cases, cancer, heart disease and so on are usually declined for immediate coverage.
High risk parents can qualify for “graded death benefit insurance.” This type of policy has a waiting period – usually 2 years before full benefits are available.
Is a no exam Life insurance policy right for you?
So, who should consider a no-medical-exam policy?
This type of policy is right for you:
If you don’t like getting stuck with a needle and submitting to an insurance medical exam.
If you haven’t seen a doctor in the past 2 to 5 years.
You are in good health and need a policy fast
You don’t require a large amount of coverage – over $500,000
Life insurance without an exam isn’t for everyone, but for people who don’t want to go through the hassle of securing a traditional policy, it’s a great alternative.
No exam life insurance is the fastest growing segment of the insurance industry. As more people demand, simple and convenient underwriting, more insurance companies will enter the field and offer more policies.
If you’re considering a no medical-exam life insurance policy, contact us at 914-633-1717 to learn about your options. You might be pleasantly surprised how easy it is nowadays to get insured and protect your family.