Keep your stomach empty. Stay away from making use of urinal. And wait till the paramedic arrives. Then, you go through the tests: blood, urine, saliva, blood pressure check and the like. You also answer a series of questions which can be quite lengthy and boring. On top of this, there is the waiting for weeks to know if your application gets approval and what the rate is. This is how you get your life insurance in the traditional way. If, like many others do, you wish there were an alternative way, good news is insurers have come up with no medical exam life insurance policies for you.
That is to say, insurance companies have made the buying of life insurance simpler for you. The process being simple, this mode of buying life insurance is also known as simplified life insurance. You can purchase a regular term life insurance without having to go through the paramedic hassle. Some companies also sell whole life insurance without a physical check-up done.
While simplified life insurance or no physical exam life insurance may sound to be the very thing you wish for, it does not come without its pitfalls. So, whether you should go for it or not needs scrutiny.
Reasons Medical Tests Are Taken
In the traditional way, in the medical-test-inclusive life insurance, the insurer has you undergo medical tests to determine two things:
Whether or not you are eligible for the purchase.
And if the outcome is positive, what your rate will be.
That is to say, your overall health is the biggest determinant factor in life insurance policy sign-up. If the insurer finds you to be of vulnerable health, you are likely to get a disapproval. On the other hand, on approval, life insurers determine your rate on the basis of your health status.
A Safe Route for You?
So, if you have fears your application might not get approval, you would find no medical exam life insurance to be a safe route for your application. Or, if you have reasons to skip the medical test method, you might as well think it to be a good fit for you.
But it might not be as rosy as you may think of.
This is why you need to know well of the way no medical test life insurance works.
As you have already known, your health status plays a crucial role in the purchasing of your life insurance. Therefore, you might feel tempted to think that life insurance without medical tests has nothing to do with your health status. Contrary to the belief that the concept develops, your health plays the same crucial role in the singing up of your life insurance without medical test.
Difference Between Test-Inclusive and Test-Inclusive Approaches
The difference that the two approaches make lies in the fact that in the traditional way you undergo the physical test physically; but in the no medical exam life insurance, you do not undergo it physically. In the latter approach, the insurers ask you to provide them necessary questions about your health. They may view your answers to be true accounts of your current health and decide your insurance fate on the basis of it. Again, they may have the information you provide them checked from available sources. For example, they will likely have your prescription information checked from the Medical Information Bureau.
The questions that they ask you about your health vary no way from the way they want to get informed about you when you apply for life insurance through physical exam.
Hopefully you understand that if you have serious health issues, your application for no medical life insurance will receive a decline. That means if you have diabetes type 1 or HIV or any other critical health conditions, getting insurance protection for your family members via no physical test method might be impossible.
That means no medical exam life insurance is not truly what it sounds like.
To know about how to get life insurance when you have diabetes or HIV, we recommend the following articles:
There Are Pitfalls
As we have already said, no physical test life insurance has its pitfalls. First, if you we are approved your cost for the insurance will go a lot higher in comparison with a test-inclusive life policy. It so happens because when they take your statements granted to be prima facie true, they assume they run more risk on your insurance. That is why they want to rate it high so that it can be compensatory for them.
Secondly, no medical test life insurance policies are not universal in character. They come in age bands. If you are not of certain age band, you are likely to miss the insurance-train.
Thirdly, no medical life test life insurance policies have coverage limitations. If you want to have a huge coverage, no physical exam life insurance will disappoint you.
Fourthly, you are most likely to have a waiting period of two years when you buy life insurance policy without medical test. That is to say, if you die within the first two years, your coverage will not convert. However, this is a company-specific issue and even test-inclusive products have waiting period features.
And finally, you already know there is the possibility of decline of your application here as well.
What You Can Buy
You can buy both whole life and term life insurance without you requiring to undergo medical tests.
The products come in two ways:
the insurer asks you health-related questions. You will have seen advertisements of this type of life insurance with tags like ‘No physical test. Just a few simple questions.” If you want to buy regular term life insurance for your family, you can avail of this approach. In other words, your life insurance will work the same way it does in the test-inclusive insurance.
In the other,
the insurer does not ask you any health questions. “No health questions,” is the catchphrase for this product. This sales approach brings you opportunity to buy whole life insurance.
But the whole life insurance that you can buy without paramedic test is not the traditional one. This version of the whole life insurance without paramedic test is also known as final expense life insurance or guaranteed acceptance life insurance . The reason for the latter name is no matter what your health status is, your application will get approval.
This type of whole life insurance offers a very small amount of coverage which typically offers from $3000 to $25000. Few companies go as far as $50000. It is pathetic that the coverage comes in graded amounts. That means the sooner the policyholder passes away, the smaller amount of death benefit he gets. This policy is intended for meeting the policyholder’s funeral costs.
This guaranteed issue policies have age-restriction features that vary company-specifically. For example, Colonial Penn’s offer is valid for people between 40 to 75 while Mutual of Omaha’s offer goes for people between 45 and 85.
While whole life insurance without medical exam is restrictive in nature, term life stands quite in contrast with it. It works the same way any regular term life insurance product does. However, it stands at variance with physical test-inclusive insurance with regard to coverage and age restrictions.
For example, most companies are not generous with regard to coverage amount in their no medical exam term insurance offers. While some go up to $500,000 amount, others can be as low as $50,000. Thus, MetLife’s Rapid Term coverage has offers up to half a million dollars. They get you covered for 10, 15, 20, 25 and 30 years. On the other hand, State Farm’s Instant Answer Term Insurance offers you only $50,000. While MetLife does not follow any age-band rule, State Farm does. They cover people between 16 and 45 with coverage to age 50 or 10 years after the policy issue or whichever comes later.
The bottom-line is term life insurance without medical tests has two limitations. If you want to buy a huge amount, you are going to be disappointed. And most companies have their age band policies when it comes to no exam term life insurance.
The Advantages of No Medical Exam Life Insurance
Despite the pitfalls that no medical exam life insurance involves, there are aspects that you might find positive.
Hypothetically speaking, if you have reasons to hate paramedic tests, you might love it.
If you do not need a lot of money for insurance coverage, life insurance without medical test can be a choice for you.
As the process of approval of no medical exam life insurance is rather straightforward and short, buying life insurance in this non-traditional way can be the best fit for you. Your application may be granted from instant to hours company-specifically.
You can buy your insurance hassle-free staying back at home. The principal marketplace for life insurance without physical test is the internet. So, buying your policy online goes in your favor.
Also, when you buy the guaranteed issue life insurance you have access to cash value. That is to say, upon being willing to pay interest, you can borrow from your insurance. (However, it is good to note that this can prove to be suicidal decision. On one hand, you have to pay interest on the loan. On the other hand, any impending loan will be taken off from the scanty coverage that comes in graded forms.)
You might wonder what if you lie to the insurer about your health status? Well, we have already mentioned, the life insurance company you deal with collects all the necessary information from different sources. So, being honest with the insurer is of utmost importance. Even if you get your coverage for now, any contrary-to-fact data will simply backfire in the end.
And you know all’s well that ends well.
What Life Insurance Mentors Say
We do not differ with what most insurance experts say about no medical exam life insurance. Unless you are circumstantially obliged, buying your term life insurance in the traditional way is the best approach. But buying guaranteed issue without no physical test is alright.
However, we would suggest that if you go for no medical exam life insurance, you had better shop around. By this, you can have the best rates. Your life insurance premiums are likely to go down when you do so. For shopping around for affordable no exam life insurance companies, we recommend that you take a look at our article 6 A+ No Exam Life Insurance Companies.