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From the perspective of life insurance companies, it obviously makes a huge difference what level of health their policyholders are in when they sign up for coverage. That's why a simple medical exam and health history check is built into the underwriting process. But there are also companies that offer term life without requiring a medical exam, and sometimes, such a policy is highly desirable.
There are a number of different reasons why people seek to avoid a medical exam, including the hassle, potential embarrassment, and the fear (whether or not unfounded) that they might not pass the exam. The terms and premiums of no-exam insurance may sometimes be less optimal than for life insurance that requires an exam, but this is not always the case.
Here are the 4 major types of life insurance you can apply for without having to go through a medical exam:
1. Guaranteed Issue
Guaranteed issue is a kind of scaled down whole life policy that is offered to elderly people who have no other life insurance and just want to make sure funerary and other final expenses are taken care of when they pass away. Younger applicants who may not qualify for other types of policies also often seek a guaranteed-issue policy.
As the name implies, there are no "rules". You just apply and your automatically accepted for the coverage. There's no medical exam, no health questions, and no underwriting process. Simply sign up and pay your premiums to guarantee the benefit.
2. Simplified Issue
Simplified issue is available as term or whole life. A medical exam is not required, but there will be a process of asking health questions on the application and of researching your medical history. Approval is not guaranteed, but it's not that hard to get either.
The coverage amount is usually small with simplified issue and you have to pay a little more per unit coverage than with policies requiring a medical exam. But at least the process is quick and easy, and you can still get a reasonable deal - especially if you have life insurance agent to help you compare offers.
3. Instant Approval
This is a form of life insurance that offers "accelerated underwriting" to make it significantly faster and easier to buy a policy. Instant approval policies allow higher coverage amounts than guaranteed issue or simplified issue, and they have competitive premiums compared to policies requiring a exam (which they don't).
You may have to answer a few more health questions than with simplified issue, and it will likely include an over-the-phone interview. Plus, approval is less certain than with simplified issue, though not particularly difficult to obtain.
4. Group Life Insurance
If you're lucky enough to have a life insurance policy available through your employer - or if you can get one through the AARP or other memberships, you won't have to answer health questions or take a medical exam to get approved. The rates are determined for the group as a whole, so this simplifies the sign-up process and often gives you a sizable discount.
To learn more about which type of life insurance policy might be right for you, with or without a medical exam, feel free to contact Summerlin Benefits Consulting today for a free consultation. An experienced insurance agent can help you make an informed decision.