At IUL Advisors people frequently contact us looking to purchase a “no medical exam” life insurance policy. We help those with pre-existing conditions and health issues find life insurance that meet their needs. We represent several no medical exam companies that can get you approved for life insurance fast. No physical exam life insurance coverage is ideal for those looking to get life insurance quickly (in cases to cover pre-existing conditions such as high-blood pressure, or to avoid the application process of having a medical examiner come to their home or business to perform an exam. There are several advantages of choosing no exam versus exam life insurance.
What Exactly Is No Medical Exam Life Insurance?
No medical exam policies are exactly what their name implies: You don’t have to take a medical exam for this type of policy like you do with a traditional life insurance policy. Yet they provide the same guaranteed coverage as those that do require a medical exam. But, no medical exam policies — also called “simplified issue” policies — are typically limited to lower coverage amounts. And, most of the time they are still fully underwritten with a complete medical questionnaire. Your background review could include the following:
- Pharmacy report, which lists all medications you’ve been prescribed over the last 5–10 years
- Motor Vehicle Department report
- Medical Insurance Bureau report (to see if you’ve applied for or have been denied life insurance in the past)
- Credit history (only a few insurance companies check this)
No Exam Life Insurance Quick Facts
Pro’s
No exam life insurance gives you the ability to get covered fast at affordable rates. You no longer have to wait up to 30 days to be accepted by a Life Carrier.
Con’s
Monthly premiums are slightly higher since the insurance company is going to give you accelerated life insurance with no exam.
Who Is It For
Buying life insurance without a medical exam is best for people who don’t want to deal with a medical exam or longer waiting periods and who are in good health.
2017 LIMRA (Life Insurance and Market Research Association) Facts
- The biggest myth about the cost of life insurance is that it’s too expensive.
- A recent study from LIMRA found that 63% of people said they wouldn’t get life insurance coverage because of its cost.
- However, the same study found that life insurance policy quotes are only 80% of what people thought they were.
- Life insurance income replacement has declined to 3.4 years. In general, industry experts recommend individuals have enough life insurance to replace 7 – 10 years of income.
- More than 4 in 10 consumers say they haven’t purchased life insurance because they don’t know how much they need or what type to buy.
- More than a quarter of Americans believe they would not qualify for insurance.
- 40 percent of Americans say they wish their spouse or partner had more life insurance coverage.
- Insufficient coverage has grave consequences for countless families. More than half of consumers say they would have immediate or near immediate trouble paying living expenses if their primary wage earner died.
How Long Does It Take to Get a Policy?
In many cases you can apply for a no medical exam insurance policy and have your policy issued the same day you apply. If your application needs to be reviewed more closely by an underwriter it could take from 2 to 10 days for your policy to be issued.
Some of the red flags that might keep your application from being approved right away? A long list of prescription medications, a criminal conviction, a current bankruptcy, a history of substance or alcohol use or abuse, or a recent trip to a dangerous part of the world are all things that might cause an underwriter to take more time to review your information.
How Much Does It Cost?
The increasing popularity of these plans has made them more competitively priced. A few decades ago, it would have been difficult to find an insurance company that would let you apply without the physical. These days, though, more and more insurers are getting on board. That means you have more competitive options than ever before, and we’re here to help you sift through the best insurance companies out there.
While a no exam life insurance plan has some clear advantages for you, it means higher risk for the insurer. When insurance companies issue a policy without conducting a medical examination, they are really rolling the dice. One way that insurance companies cover their risk is by limiting the amount of coverage available with no exam policies.
The cost you will pay for no medical exam life insurance will vary, of course, depending on the information you provide. Let’s use a healthy 40-year-old man as an example. As long as he isn’t a smoker and his health history checks out favorably, he could get a 20-year guaranteed level term policy with $200,000 worth of coverage for somewhere between $35 and $65 per month, depending on the insurance company he chooses.
That said, it’s good to keep in mind that there are a few factors that could raise this rate. A history of poor health, for instance, is a difficult thing for insurance companies to accept. What some people don’t realize is that habits like smoking cigarettes or drinking to excess could double their rate. Even a history of mental illness, as documented in a pharmacy report, could make things a bit more expensive.