You’ve probably heard that you need to undergo a medical exam to get life insurance. If you have health issues or a history of health issues, this may concern you. Even if you’re healthy as a horse (so to speak), this may still give you some anxiety. Did you know that you can get life insurance without a medical exam? No medical exam life insurance almost always guarantees that you’ll get the coverage you need.
Below we will discuss a couple of common reasons people opt out of medical exams for traditional policies and explore alternative policies that will allow you to find insurance that fits your life.
Why do life insurance companies need to do medical exams?
Applying for life insurance is fairly similar to applying for a loan. Lenders do not want to give money to borrowers who present a significant credit risk. If a lender exhibits a poor history of repayment on debt obligations, there’s a chance they’ll default again. The same is true for unhealthy subscribers with life insurance. Someone with a serious chronic illness is not a good candidate for traditional life insurance (from the insurance provider’s perspective) because their odds of having to award a benefit are higher. For this business model to be statistically profitable, life insurance companies need to make sure the customers with coverage are healthy.
2 Common Reasons People Want No Medical Exam Life Insurance
Ongoing Health Problems
Controlled diabetes, GI issues (like irritable bowel syndrome), anxiety, depression, obesity, and high cholesterol are some of the most common chronic conditions that complicate getting life insurance. Though these conditions are not considered terminal or debilitating, they still send a red flag to insurers. Why?
This is because they could signify underlying issues. For instance, obesity could lead to heart disease or gout, GI issues could signal the potential for cancer, and so on. For these reasons, insurers want to play it safe. This isn’t to say that you’ll never be able to get life insurance if you have health issues, it just means that you might be denied if you have to undergo a standard medical exam.
They Don’t Have the Time to Get an Exam
Medical exams, and the process of having those exams performed, can be a real hassle and typically take a few weeks to complete. Usually, insurance companies pay for the medical exam and often send a technician to your house to perform it. The exam often takes less than 30 minutes and includes a non-invasive collection of data like
- Height and weight
- BMI (body mass index)
- Pulse and blood pressure
- Urine and blood samples
- EKG (for applicants over 50)
Even though the actual exam is quick and non-invasive, the entire process is something that many would like to avoid. Not only is it time-consuming, but if anything appears as a red flag, then the process can be further extended. If you are shopping for an insurance policy that you can choose and be approved for on the same day, then you’ll need to get life insurance without a medical exam.
2 Types of No Medical Exam Life Insurance Policies
If any of the above issues resonate with you, you should consider no medical exam life insurance. As implied, these policies require no medical exam. Because life insurance companies cannot afford to take on risky insurees at standard rates, no medical exam life insurance typically has higher premiums and lower coverage.
Simplified Issue Policy No Medical Life Insurance
One type of life insurance with no medical exam is a simplified issue policy. With this type of policy, applicants have to
- Fill out a questionnaire about their medical history and their family’s medical history and
- Provide access to their medical records.
At the end of the day, however, they won’t have to undergo a medical exam or follow up with issues that the exam brings up, as they would when applying for traditional life insurance.
No Medical Term Life Insurance and Permanent Life Insurance
There are two types of simplified issue life insurance.
- Permanent (also known as whole life policies) – it lasts your entire lifetime, as long as the premiums are paid
- Term Life – it lasts for a specified period such as 5-, 10-, 15-, 20- year increments
While no medical term life insurance offers more affordable coverage, a permanent simplified issue policy may have higher premiums. The major advantage of permanent policies is you only have to go through the health screening once. On the other hand, applicants for term life will have to reapply for an insurance policy each time the term expires. At that point, you should consider that age and changes in your health status could have a significant effect on your premiums.
Guaranteed Issue No Medical Life Insurance
Guaranteed issue life insurance policies are a go-to for most because they offer almost certain approval, especially if you struggle to qualify for traditional or simplified issue insurance. Because there is less in-depth health screening and no medical exam, premiums can be a little higher compared to simplified issue life insurance. Additionally, death benefits tend to be capped at around $25,000 or less, which is often enough to cover final arrangements and burial expenses.
This type of no exam life insurance might be good for someone with a terminal illness who cannot get coverage but still wants to help cover the costs of final arrangements.
How to Get Life Insurance
Ultimately, it is important to remember that you must disclose whatever is required of your medical history in good faith. Whether you get a policy that requires a full medical exam, or a policy that requires you to answer a few simple questions, you cannot lie about your personal health when getting coverage. If you die and something is discovered that the insurer deems you to have knowingly hidden, they can find good cause to avoid paying out the death benefit – which is why you signed up for insurance in the first place.
While medical exams could save you money in the long term — there is no one-size-fits-all answer when it comes to life insurance. Your best bet for getting the right life insurance is to discuss costs with an insurance broker here at Principled Life. We work for you – not the insurance companies – and we can help you weigh your options.
