The Convenience of No Exam Life Insurance
In today’s world, we can get virtually anything we want instantly. The internet has made it possible to go shopping online, order food, get customer support, and connect with people from around the world. Social media keeps us up-to-date — in real-time — about everything that’s going on in our immediate social circles and everything that’s going on in the world. Next-day shipping is the norm. No one has the patience to wait for anything anymore.
How strange, then, that life insurance companies have been slow to adapt to this new normal. Most traditional life insurance policies require a lengthy application process, including a medical exam, and the approval process takes 4-8 weeks. Many people don’t have the patience for the long endeavor and simply don’t buy life insurance. Fortunately, life insurance companies have noted the changing times and now offer an alternative to traditional life insurance. A quicker, more convenient alternative: no exam life insurance.
No exam life insurance is a type of policy that’s designed to meet the demands of the modern consumer. The application process can be done entirely online or over the phone in a matter of minutes. And no medical exam is required, which means you don’t need to wait to schedule the exam and don’t need to spend 30 minutes undergoing the exam. Once you submit your application, underwriters review your policy quickly. In some cases, you can get approved immediately. In the “worst-case” scenario, it can take a few weeks to get your answer.
Types of No Exam Policies
Just as there are different types of traditional life insurance policies, there are also different types of no exam ones. Some of the most popular are:
- Simplified issue
- Accelerated underwriting
- Guaranteed issue
The simplified issue can be term or whole life insurance, but the main point is that no medical exam is required. The application process includes a short health questionnaire and, in some cases, a phone interview. While simplified issue policies are not fully medically underwritten, there is some underwriting involved. It involves comparing the health information that you do submit, and in some cases, insurers collect information from third-party sources like pharmacy, driving, and credit records. This way, underwriters can get a clearer idea of the level of risk you pose.
Accelerated underwriting policies are also underwritten, but the process is accelerated. This means that insurers have dedicated teams or internal processes designed to speed up the entire underwriting process. Approval can be granted immediately or within a few days. In some cases, underwriters may feel that they don’t have enough information to make a final decision. In these cases, the applicant will be asked to undergo a medical exam.
Guaranteed issue is a type of whole life insurance that grants approval to anyone who is below the age limit. You don’t need to disclose any health information on the application, and of course, there is no medical exam. Guaranteed issue is often considered a last resort because rates can be extremely high and the coverage only goes up to $50,000. To get a free quote, click here.
Other Reasons to Buy No Exam Life Insurance
In addition to the sheer convenience, there are several reasons why people choose to buy no exam life insurance. These include:
- They need life insurance fast – People who are going through a divorce or need a small business loan might be hard-pressed to secure life insurance fast. No exam life insurance fits the bill.
- They’re scared of needles – Fear of needles is classified in the DSM-IV (Diagnostic and Statistical Manual of Mental Disorders) as a specific phobia. No exam life insurance lets people with this phobia skip the exam, and the required blood test.
- They won’t qualify for a traditional policy – Someone who has health complications may not qualify for a traditional life insurance policy, but they can qualify for a no exam policy.
Pros and Cons of No Exam Life Insurance
Sure, no exam life insurance has a lot of benefits, like convenience, speed, and easier approval. To be fair, it’s important to note that there are some cons as well:
- Can cost more – In some cases, no exam life insurance can cost more. This is because insurers have less information about you than they would from a typical life insurance application. The higher rates help cover the insurer’s risk.
- Fewer options – There are usually more options for traditional life insurance policies.
- Limited coverage – The guaranteed issue is limited to $25,000 or $50,000 in coverage, while simplified issue and accelerated underwriting can go up to $1 million.
Only you can decide whether the pros of no exam life insurance outweigh the cons. There are so many factors that go into making a decision regarding life insurance, and no two people are in the exact same situation. However, the general guidelines are that if you don’t have the patience to wait 4-8 weeks for approval if you need life insurance quickly, or if you don’t want to undergo a blood test, no exam life insurance can be a good option for you.