6 Important Things to Know about No Exam Life Insurance
These days, almost all limelight insurers are offering the in-vogue insurance known as no physical exam life insurance. As the name suggests, you may choose not to undergo paramedic tests that would traditionally require you to provide blood sample, urine, saliva, take a blood pressure check-up and the like. The purpose of this type of insurance is to speed up and simplify the approval process. In place of waiting for weeks, you can now get yourself insured typically from instant to two business days if you apply to one of the best no exam life insurance companies.
You, however, need to know 6 very important things with regard to this type of insurance:
1) Not all companies sell life insurance without medical exam.
2) No exam product categories as well as specifications vary from one company to another.
3) Approval process varies between companies. While some companies are comparatively flexible, some may be rigid-ish in the same way.
4) Few companies offer large insurance.
5) Some companies offer extra benefits while some others do not.
6) Rating guidelines vary between companies. Some will charge you higher rates for simplified issue life insurance while some others will not differentiate between how the policy is issued.
This is why, having a back-up knowledge of the best no exam life insurance companies may prove handy for you.
To help you, we have chosen 6 insurers for you. Each of the companies:
1) Is rated A+ by Better Business Bureau (BBB)
2) Offers big coverage that other companies seldom provide.
3) Has either special no exam policy portfolio or multiple portfolios.
4) Provides some kind of rider free of cost.
Before we know the names, let’s know …
What Is a No Exam Life Insurance Policy?
By definition, a no exam life insurance policy is an insurance product that comes through speedy mode of approval that excludes the traditional paramedic tests to qualify for a policy.
So, no exam insurance exempts you from:
1) Paramedic Test
2) Procrastination in approval
Types of No Exam Life Insurance Policy
Life insurance without physical exam has the following 2 major versions:
1) Guaranteed Issue
2) Simplified Issue
Guaranteed Issue Life Insurance
A guaranteed issue life insurance is the best option for people who have fears of being disapproved for their physical conditions. This policy is issued to people typically aged between 40 to 80. A coverage of often not exceeding $50,000 and with an average cap of $25,000, is approved when you apply for this insurance. Some no exam life insurance companies limit their cap to $10,000.
This policy is often the only choice for people who have terminal illnesses and would want to buy final expense insurance for themselves. As the name suggests, no matter how your health status is, approval is guaranteed. You are typically asked no health questions.
Simplified Issue Life Insurance
A simplified issue life insurance makes the approval process simple by excluding physical exam ‘physically’. Instead, your answers to a several health questions and an investigation into your health and driving history determine your approval and insurance premium.
However, unlike the guaranteed issue life insurance, the coverage cap of a simplified policy may range to several hundred thousand dollars. This makes simplified issue life insurance an alternative to life insurance that includes physical exam.
But remember that simplified issue life insurance does not guarantee approval. Approval depends on your reports.
A simplified issue life insurance comes to you through:
1) Answering questionnaire
2) Telephone interview
3) Attending Physician’s Statement
4) Your Medical History
5) Your Driving History
Physical Or No Physical?
Before you decide to buy your insurance from one of the no exam life insurance companies, you had better know the differences between life insurance with physical exam and no-physical exam:
When Is No Exam Insurance the Best Choice?
Depending on your situation you may find the policies that no medical exam life insurance companies offer to be quite useful. These are the 5 situations when no physical exam insurance may be the best choice for you:
- You urgently need life insurance for legal purpose.
- Because of aversion to it, you would want to avoid paramedic tests.
- You cannot afford to find time to undergo a medical test.
- There is doubt in you that your application for life insurance through physical exam might be rejected,
- You don’t need a huge coverage and you don’t care about the costs.
Which Are the Best No Exam Life Insurance Companies?
When you have found yourself in one of the situations mentioned above, the next most important question is — which are the best no medical exam life insurance companies out there?
With a view to assisting you, we have picked up the following 6 companies that bear A+ rating from Better Business Bureau (BBB):
1) American Amicable
2) Assurity Life Insurance
3) Banner Life
4) Fidelity Life Association
5) North American
American-Amicable Life Insurance Company of Texas
American-Amicable Life Insurance Company of Texas sells both guaranteed issue or final expense and simplified issue life insurance policies.
Features of Final Expense Life Insurance
American Amicable’s final expense life insurance bears the following features:
- Unlike most of their competitors, American Amicable does not sell this policy to people aged between only 40-85. Their widest age bracket covers people between 0 days to 85 years.
- There are multiple death benefit plans qualifying for which depends on age and health reports of an applicant. As a result, it is quite possible to larger amount of coverage which many insurers may not offer.
- Rates do not vary for change of health status.
- The coverage does not go down for any reason.
- Being of whole life insurance genre, you can borrow from your policy if there is any cash value accumulation.
Non-Medical Term Insurance
Non-medical term insurance by this one of the A+ rated no exam life insurance companies offers you up to $250,000 without you having to undergo any paramedic test. The minimum is $25,000.
Association Term Life Insurance
Association Term also comes to you without medical exams. But you need to be a first responders job doer (like fire extinguisher or policeman) or government employee to qualify for this policy. For applying for this policy, you need to be between 18-65 years of age. This, in fact, is a group life insurance that comes to you through your employer. The policy is a 10-year renewable policy.
Term Made Simple
Term Made Simple comes in 10, 15, 20 and 30-year level term plans with coverage between $50,000 to $400,000. Issue age is 18-65 while coverage may continue up to age 95 upon renewal. At age 75, you can buy no exam life insurance for a 10-year period.
An added benefit of this policy is you can enjoy the following 3 rider benefits without additional costs:
1) Terminal Illness Accelerated Benefit Rider that guarantees 100% of the face value if you are diagnosed with one of the terminal illnesses.
- Accelerated Benefit Confined Care Rider pays you 2.5% of the coverage (not exceeding $5000) if you are confined to a nursing home for a minimum of a month.
- Chronic Illness Accelerated Benefit Rider offers you early withdrawal of part of your coverage upon certification of your doctor that you are unable to perform at least of two daily activities.
Besides, you can customize this policy by purchasing of one or more of the riders that are available:
1) Accidental Death Benefit Rider
2) Children Benefit Rider
3) Disability Income Rider
4) Waiver of Premium Rider
5) Waiver of Premium for Unemployment Rider
American Amicable also allows conversion of the policy to whole insurance so long as it is in force. Also, you can renew this policy up to age 95 with guaranteed annual renewability.
Return of Premium Term Insurance
Amicable sells Return of Premium (ROP) term life insurance that returns all your premiums if you outlive the policy. They sell this policy without medical exam.
Universal Life Insurance
Sale of universal whole insurance without medical exam is quite a rarity. The coverage they offer ranges between $25,000 to $500,000. This type of policy by default is premium and benefit flexible, meaning you can adjust your premiums and coverage to suit to your need and capacity.
American Amicable perhaps tops the list of our best no exam life insurance companies not only in alphabetic order but also for the wide range of choices they offer to their customers.
Assurity Life Insurance Company
Assurity does not have as many varieties as American Amicable does. The 2 policies they sell without medical exam life insurance are: LifeScape Non-Med Term Insurance 350 and LifeScape Term 350 Plus.
LifeScape Non-Med Term Insurance 350 is a hassle-free option for you when you seek mortgage life insurance (also known as Decreasing Term Insurance). The policy is available in 10, 15, 20 and 30 years with a maximum coverage of $350,000 that leans over time in tune with your mortgage loan.
For added benefits, this policy offers two essential riders which you often have to buy with additional payment from others. The free Accelerated Benefit rider allows you to withdraw benefit in advance if you are diagnosed with a terminal illness. On the other hand, their free Conversion Rider allows you to convert part or whole of the policy to a permanent life insurance policy.
Besides, you can buy any of the following riders that suits your need:
- Other Insured Term Rider
- Disability Waiver of Premium Rider
- Critical Illness Rider
- Monthly Disability Income Rider
This policy provides you no exam level term insurance for 10, 15, 20 and 30 years and offers coverage up to $350,000. One rare feature of this policy is if you meet ‘certain health guidelines’, they offer discounted rates for you.
Like few of their competitors, they also offer cost free conversion rider that enables you to turn your policy to permanent insurance.
You can buy and add one of these 7 riders to your this policy:
1) Other Insured Term Rider
2) Disability Waiver of Premium Rider
3) Monthly Disability Income Rider
4) Accident-Only Disability Rider
5) Critical Illness Rider
6) Children’s Term Insurance Rider
7) Return of Premium Rider
Banner Life Insurance Company
Banner Life’s (a Legal and General company) no medical exam life insurance Appcelerate is an automated underwriting program which makes them a standalone company. The policy is known as OpTerm and you can by it in 15, 20, 25 and 30-year periods.
They offer the highest coverage which is up to $1 million dollars to their clients and the coverage comes in age-bands in the following way:
20-40: Amount $100,000 – $1 million
41-45: Amount $100,000 – $750,000
46- 50: Amount $100,000 – $500,000
Banner Life does not offer any riders.
Fidelity Life Association
Right after American Amicable, selling 5 types of no physical life insurance policies make them one of the best no exam life insurance companies in the USA. The policies are brand-named as RAPIDecision®:
You can buy a 10, 15, 20 or 30-year level term policy simply by answering several questions to qualify and stay insured up to age 95. Issuance comes in the following age bands:
You can buy up to $1000,000 depending on your age and nicotine habit.
1) RAPIDecision is unique in the following way:
One part offers level premium death benefit that converts when a policyholder dies of a cause other than mentioned in the policy.
The other part offers additional death benefit in the event of a policyholder’s death by an accident.
2) The policy allows you to improve your health status within the first 6 months so that you may raise your coverage or lower your premiums. No matter your health status worsens than when you signed up, your original coverage does not change.
Rapid Decision Express comes to you through simplified process that takes your MVR and MIB reports into account. You can buy 10, 15, 20 or 30-year level term insurance for coverage ranging between $25,000 to $250,000. Issue age is 18 to 65 and a unisex rate policy is followed.
The policy remains in force up to age 95 upon renewing annually when your level period is over.
Rapid Decision Senior offers 2 types of insurance to you:
Rapid Decision Senior Term
This policy offers no physical exam level term insurance protection to you for 10, 20 or 30 years. People between 50-70 can buy this policy for coverage worth $10,000 to $150,000 which is age-dependent. Coverage converts in 3 years. The death benefit is cut off to 50% at the end of the level period or at 11, 21 or 31st year of the policy.
Rapid Senior Whole
This one is a whole insurance policy that offers death benefit of up to $150,000 and the protection stays in force till you continue the policy. The is for people in between 50 and 85 and protection stretches to 121st anniversary upon payment of premiums that never increases. Benefit converts in 3 years.
RAPIDecision Final Expense
This policy is for people who seek final expense life insurance to meet their last rites costs. Customers who are aged between 50-85 can buy a face value of $5000 to $35,000 that lasts till death upon continuation. Premiums for this final expense life insurance does not increase at any point and protection remains valid till death.
What makes this policy a better choice for final expense insurance is full benefit begins at sign-up. To qualify for this policy, answering health questions are necessary.
RAPIDecision Guaranteed Issue
As its name suggests, this policy comes to you without any physical tests or medical questions asked. The only condition that applies is the buyer has to be between 50-85 years of age. Maximum death benefit for this lifelong insurance is $20,000 which fully comes after the 3rd year. Partial payment is made before this period.
North American Company for Life and Health Insurance
Through simplified underwriting, North American offers their no exam term insurance with brand name LifeVue. This term policy offers $50,000-$500,000 coverage to eligible people aged between 18-50 through simplified underwriting. The term period comes in 10, 15 and 30 years.
An advantage with North American is most of the applicants may expect to get approval as they sell the policy to people of different health classes, both smokers and non-smokers. Like some of their competitors who are in our list of the best no exam life insurance companies, North American also offers accelerated death benefit rider free of cost.
However, once your term period is over, you may require to update your health status for renewal.
Phoenix Life Insurance Company
Safe Harbor Term is the simplified term insurance that brings Phoenix onto our list of the top no exam life insurance companies. They have 2 term insurance policies that they sell through simplified underwriting:
1) Phoenix Safe Harbor Term (Non-Express)
2) Phoenix Safe Harbor Term Express
Phoenix Safe Harbor Term (non-express) is available in 10, 15, 20 and 30 years terms. Depending on your age and tobacco habit, you can buy up to $500,000 coverage without the hassle to undergo medical exam. The age eligibility synchronizes with age and you can buy the policy up to age 80. This is how the issue age works with Phoenix Safe Harbor Term Non-Express:
10 Year: Age 18-80
15 Year: Age 18-70
20 Year: Age 18-65
30 Year: 18-55 for non-tobacco users
18-50 for tobacco users
Coverage also conforms to age in the following way:
|Issue Age||Maximum Coverage|
|18-50||$50,000 – $500,000|
|51-60||$50,000 – $400,000|
|61-70||$50,000 – $300,000|
|71-80||$50,000 – $150,000|
This policy does not require you to go through any medical test. But an Attending Physician’s Statement (APS) is often required.
Phoenix Safe Harbor Term Express
You can buy 10, 15, 20 or 30-year terms in accordance with the age-guidelines for the non-express policy. You are required neither to undergo any paramedic test nor to submit an APS to the insurer. But, coverage on this policy is smaller than in the non-express policy. Here is how the coverage works in Safe Harbor Term Express:
|Issue Age||Maximum Coverage|
|18-50||$25,000 – $400,000|
|51-60||$25,000 – $300,000|
|61-70||$25,000 – $200,000|
|71-80||$25,000 – $100,000|
Safe Harbor offers you 4 useful riders free of cost. They are:
1) Chronic Illness Benefit Rider
2) Critical Illness Benefit Rider
3) Terminal Illness Rider
4) Unemployment Rider
Besides, you may choose to buy Accidental Death Benefit Rider and customize your policy.
6 Tips for No Exam Life Insurance Purchase
1) Unless imperative, try to avoid no exam life insurance companies. Usually, your cost will be higher than when you opt for a medical exam policy.
2) Don’t get allured by the free riders unless you think they may come to use in future. Riders seldom come to use.
3) If you find any rider useful, make sure it is available in your state.
4) Talk to your agent to know more if you like any (of these or any other) policy.
5) Each insurance policy bears a free look period within which you can cancel your policy. If you buy any policy, read between the lines during this period.
6) Do not take any company granted best when it comes to the costs. Get quotes so that you may compare and find the best rates.