I remember my life insurance medical exam. It was relatively painless, but if it would have taken more than Half an hour or required me to sit inside a waiting room, I might not have gotten the policy I needed. What can I say? I know myself.
The need to take a medical exam can understandably encourage people to push “buy an existence insurance policy” further down their to-do list. The health exam itself is not a problem, but it is a hurdle that takes break of the day. It gets personal. And frankly, nobody likes needles.
These days, there are many possibilities for purchasing term life insurance online. Some online life insurance providers have made progress in making use of sophisticated underwriting algorithms to get rid of the requirement for a health check among certain qualified applicants. Other digital options ask minimal health questions online and adjust premiums because of the ambiguity inside your health. And still others do not require you to definitely answer any health questions whatsoever.
If you are in the market for life insurance coverage and wish to know whether you should think about buying a no-exam policy, you need to do a little bit of research to ensure you're obtaining the cost effective for your money while also being honest on your own about whether you're prepared to take time from your day for any health check. To help you pick the right kind of policy for your requirements, and know very well what your options are, here are a few key questions to consider when thinking about no health check life insurance.
What would be the tradeoffs with no-exam life insurance?
So you're considering no health check life insurance, but they're probably wondering the obvious question: What's the catch? Well, it's how much you are prepared to pay for life insurance. If you wish to pay less, you should consider a fully medically underwritten policy. Medically underwritten or individually underwritten coverage is usually less expensive than a completely no-exam life insurance policy, particularly if you're already fairly healthy, but that means obtaining a life insurance health check oftentimes. These medical examinations are relatively short, only taking about 20 minutes to operate through various medical questions and basic tests (together with a blood draw). This is all a part of the underwriting process. The upside is that, because you're providing the most accurate portrait of your overall health and medical history, the life insurance provider can offer you the best possible rate for your life insurance coverage. The other upside is the fact that in some instances you won't absolutely need a health check for medically underwritten coverage (more on that later).
If you are in the market for life insurance coverage and know you won't want to have a health check, do a research session to make sure you're getting the cost effective for your money-and to improve your health. Or, that you're comfortable with the tradeoffs.
How much life insurance can you get without an exam?
Ultimately, life insurance coverage companies and agencies have been in the risk-management business. Because of that, they will limit how much coverage you will get without an exam, just like a way of protecting themselves. We aren't implying you'd lie on the medical questionnaire; it's just which you may possess a condition you're not even conscious of (like high blood pressure) that would affect your rates if discovered inside a health check. Your insurer will element in the unknowns when assigning a rate for no-exam coverage.
The coverage limits will vary depending on the kind of policy you purchase. For example, at Haven Life, should you qualify, you can buy a medically underwritten Haven Term policy with no health check for approximately $1 million. If you were to opt for Haven Simple, a simplified issue (aka no medical exam) product, coverage is available as much as $500,000.
What type of life insurance does not require an exam?
There are a few kinds of life policies that don't always require a health check. Medically underwritten life insurance coverage allows you to skip test in some situations. Simplified issue life insurance coverage and guaranteed issue life insurance never need a medical exam. Find out more about these kinds of policies:
Medically underwritten life insurance
This is usually the most cost effective kind of coverage. Why is that? Because whomever is issuing the insurance plan knows the most about you. Your age, your lifestyle choices, your individual and family health history – these types of factors in determining both your eligibility and the rates or premiums you'll pay. In short, it's personalized. You'll also possess the best set of coverage options, from $100,000 to several million dollars.
And here is a little bonus: Some qualified applicants might still be able to skip the exam, thanks to innovations in underwriting at places like Haven Life. Instead, you'll submit your application and be notified instantly whether skipping test is an choice for you. Again, being honest when answering questions regarding your wellbeing is of paramount importance. If you're not truthful in hopes of skipping the exam, you run the risk of passing up on the policy or payment of advantages.
And here's the corollary to what we said earlier: The more some insurance company knows about you, the more affordable coverage can be. That's certainly the case with medically underwritten term life, as you can tell from these types of the cost of coverage for nonsmokers in excellent health for a Haven Term policy, from MassMutual.
Quotes for Haven Term
Who it may be a great fit for
If you need to pay the least expensive rates (probably), if you have no objection to going for a health check whether it's needed, and/ or you and your loved ones need a policy worth $500,000 or even more, you'll want to consider medically underwritten coverage. And also you never know: You might qualify to skip test, too. Get a quote for that Haven Term policy.
Simplified issue life insurance
True to its name, a simplified issue policy is rather, well, simple. You complete a brief questionnaire about your health. The insurer constitutes a coverage decision. You skip the health check. And boom, you can either have or do not have life insurance coverage. [Keep in mind that issuance of the policy or payment of the benefits may rely on the truthfulness of answers provided within the application.]
What's not simple may be the cost. Here's something to keep in mind when looking for coverage: The less some insurance company is aware of you, the more coverage will typically cost. Case in point: Simplified issue life insurance coverage. Because some insurance company knows less in regards to you – and does not have as detailed information regarding your health history and other relevant lifestyle decisions – you're generally likely to pay more for a simplified issue policy than you would having a medically underwritten one.
One other thing: You might not get as much coverage as you would like or need. Maximum coverage amounts are often restricted to $500,000 or less, and you will be also restricted to term lengths of 20 years or less. With Haven Simple, you can aquire a policy up to $500,000. Here are some examples of the cost of coverage for a Haven Simple policy, issued by MassMutual subsidiary C.M. Life for nonsmokers.
Quotes for Haven Simple
Who it might be a good fit for
If you absolutely, positively, don't want to take a test, a 100% no-medical-exam life insurance policy like Haven Simple is a good option. And a great place to start is by using a totally free quote.
Guaranteed issue life insurance
As you may have guessed, this type of insurance means all applicants are guaranteed coverage – regardless of age or health, no exam required. As you might also provide guessed, guaranteed issue life insurance coverage has some significant limits and caveats.
The first limit is coverage. You're typically limited to a death advantage of $50,000 or less. If you are relatively young and also have small children in the house, that's probably nowhere near your family's (or dependents') long-term needs, which might include a mortgage, education costs, end-of-life expenses and more, as well as replacing the earnings you would've ordinarily brought home. Speaking of end-of-life expenses, that's what guaranteed issue life insurance coverage is usually used for – it's often considered your final expense policy, covering any costs associated with you, well, dying.
There's another important caveat, referred to as a “graded death benefit.” Essentially, this type of policy pays out once a particular number of years (typically two or three) have transpired. This really is to keep people from taking out a policy once they know they may not live much longer. And yes, including deaths because of natural causes. Basically, even if you die unexpectedly during those first three years, your beneficiaries might not receive a full death benefit.
Finally, guaranteed issue coverage is a type of permanent life insurance coverage. That means that, should you keep paying your premiums, your coverage will continue so long as you do. The tradeoff there's that permanent life insurance is usually more costly than term life; as a result, you might end up paying far more for coverage than you'd with one of another policy options outlined above.
Who it may be a great fit for
Guaranteed issue life insurance is a good option if you want to cover end-of-life expenses, like funeral costs, when you pass away. This type of coverage typically sets you back more than a simplified issue or medically underwritten life insurance coverage – and again, many times, it provides $50,000 or less in coverage.
Accidental death insurance
No euphemisms here, folks. You might also know accidental / accident death insurance as accidental / accident death and dismemberment (AD&D) insurance. In short, this policy supplies a lump sum payout for your beneficiaries should you die in an accident (just like a car crash or workplace injury) or perhaps in a homicide. Some (but not all) policies also cover dismemberment, paralysis, or other types of severe injury through some form of living benefit.
What's not covered? Death from illness, including such common causes of death as cancer, heart disease or perhaps a stroke. These limitations can leave your loved ones in a position of financial risk, so be sure you understand the information on this type of policy before you commit. Another thing to think about: Many accidental / accident death insurance plans limit their coverage, with $500,000 being a common cap.
Which reminds us: accidental death insurance coverage is included at no charge with all Haven Simple policies. For policies of $100,000 or less, that benefit is 50% of that face amount. For policies of more than $100,000, that benefit is 25% of the face value. This is all along with your best Haven Simple face/coverage amount. Consider it reassurance ontop of peace of mind. Learn more here.
Who it might be a great fit for
If you've been declined term life due to health reasons, you might want to consider an accidental / accident death policy.
How to find the right policy for you
Here are four scenarios to help you decide whether a no-exam life insurance coverage is a good fit for you:
If you would like: The benefit of the 100% no-exam life insurance policy
Consider: Simplified issue life insurance (Haven Simple)
Here's why: Should you under no circumstances want to take a medical exam, then consider a simplified issue policy first. You'll generally be restricted to a face quantity of $500,000 or less, so make certain that's enough coverage for the family's needs. Use a life insurance coverage calculator to estimate how much coverage you might need. (Remember, life insurance coverage isn't about the medical exam, it's about the people you are financially protecting.)
With a simplified issue policy, you will need to pay higher premiums to pay the insurer for taking on more risk by not fully knowing your health background. However the convenience may be worth paying more.
If you want: More affordable life insurance coverage
Consider: Medically underwritten term life (Haven Term)
Here's why: If you are price-sensitive, then you may want to consider medically underwritten term life. This life insurance policy will most likely become your least expensive option.
Historically, most medically underwritten policies need a medical exam. However, because of recent underwriting innovation in the life insurance industry, it may not be required for qualified applicants to take a medical exam. Haven Life offers the InstantTerm process in which some applicants ages 18 -59 seeking a $1 million death benefit or less might meet the requirements that allows these to finalize coverage without a medical exam, based on the information they provided during the application.
You can complete an application to find out if you qualify to skip test. (Keep in mind that it certainly is necessary for be honest in the application. The issuance from the policy or payment of advantages may rely on the answers succumbed the application as well as their truthfulness.)
Whether you be eligible for a InstantTerm or end up taking the health check, medically underwritten coverage will generally provide you with a wide range of coverage options and pricing than you'd get from a no-exam life insurance coverage.
If you would like: Coverage and you have significant medical conditions
Consider: Guaranteed issue life insurance and accidental death insurance, but begin with a medically underwritten (Haven Term) or simplified issue (Havem Simple) policy if you haven't applied already
Here's why: If you want coverage, but they are worried about your eligibility because of health problems, it might still be worthwhile to try to get a medically underwritten policy first before you think about other available choices.
You don't have to maintain your 20s or super healthy to be eligible for a affordable rates if the coverage needs a health check or some kind of medical underwriting. While it's time-consuming to apply for multiple life insurance policies, remember that the end goal is peace of mind (for you) and financial protection (for family). And, you need to get the most value possible.
If you've got a number of health problems or pre-existing medical conditions – or if you've been turned down for other life insurance policies – guaranteed issue or accidental death coverage could be a valuable financial solution to help all your family members with funeral or other expenses should you perish.
Cost-conscious consumers with medical conditions may also like the generally lower premiums of accidental / accident death insurance compared to term life insurance even though accidental / accident death policies is only going to pay out after an accident. One advantage that accidental death insurance has over guaranteed issue life insurance coverage is perhaps you can find coverage as much as $500,000.
If you want: More than $500,000 of life insurance coverage
Consider: Medically underwritten term life (Haven Term)
Here's why: Medically underwritten policies tend to be the only type of term life that will provide coverage options in excess of $500,000. And again, with a Haven Term policy, certain qualified applicants may be able to finalize up to $1 million in coverage with no health check. Understand your lifetime insurance needs.
Select the policy that meets your requirements and budget
Buying the best coverage need not be complicated. Consider what price fits into your budget as well as what purchasing experience best suits with your lifestyle and expectations.
Most importantly, don't forget the fact that you're doing all this research and purchasing a policy to assist financially protect the most important individuals your life and provide you with reassurance.