No Exam Life Insurance Pros and Cons

Jeff Root Jeff Root
Posted in Advice

When purchasing life insurance, you need to understand how lengthy of a process it can be. It isn’t as fast as you might think. The average policy takes approximately 6 weeks to receive an approval. These policies require a medical exam and your past medical records may need to be ordered as well from your doctor. This lengthy process is a major factor why people opt for no medical exam life insurance plans. This post will provide the “No Exam Life Insurance Pros and Cons” so you can make an informed decision on your life insurance needs.

What Advantages do No Medical Exam Life Insurance provide?

Time is just one advantage of a no medical exam policy. Since life insurance isn’t like buying a phone, TV, or other item. It’s a unique purchase which provides several reasons why you may want to opt for the non med life insurance option.

Get Life Insurance even if you have Health Issues

When you have had a serious preexisting condition, it can limit the affordable companies that are available. It can be quite costly if you apply with the wrong company. This is a primary reason why many want to select a life insurance policy that doesn’t require an exam. With that said, you still have to complete an application that has health related questions.  You must answer these questions honestly and accurately in order to maintain and qualify for coverage. You can be denied if you lie on the application or the company can deny a future claim by your life insurance beneficiary.

The Speed of No Exam Life Insurance!

Many people do not have the luxury of time when trying to get life insurance. Some need coverage quickly due to personal reasons or business requirements. Some of the non med life insurance companies can approve your policy in less than 48 hours. Some are even instant.

This is extremely beneficial for some shoppers. For example, you will have coverage if something happens unexpectedly.  This life insurance coverage provides your loved ones with a safety net if something were to happen to you.  It is so important that you have coverage and protection just in case the worst were to occur.

Some require life insurance coverage quickly because they will be going on a vacation. If you are going overseas or feel uneasy before leaving on a trip, this is a quick way to get insured. Collateral for business loans is often needed quickly. A fully underwritten policy that requires a medical exam will most likely take too long. If a business deal is looming, a non med exam option can help you secure your approval for your business loan.

Disadvantages of No Medical Exam Life Insurance

When it comes to non medical exam life insurance, there are some disadvantages.

It isn’t as popular as your traditional term life insurance policy that requires a medical exam.  Let’s find out the disadvantages and why it might not be the best option for you.

Non Medical Exam Life Insurance Costs More Money

When you buy a traditional term life insurance policy (or a Whole Life insurance policy), you will need to undergo a medical exam. This medical exam is similar to a yearly checkup with your doctor.

When this medical exam is completed, the results will sent to the life insurance company that you applied with.

Once they complete their analysis of the information, they will decide on your outcome. Your outcome can go a few different ways. You can be approved as applied. You can be approved other than applied. You can be declined.

The life insurance company’s analysis is solely for the purpose of evaluating how risky you are for them to offer a policy.

What does any of this have to do with the COST?

Your risk level is directly related to the cost of your policy, but how much is life insurance going to cost you?

Since a Non Medical exam life insurance policy doesn’t provide the life insurance company key information that helps them evaluate their risk.  – They charge you more for the non medical exam policy. It’s more of a risk on their part and you pay for this higher risk.

You’re better off buying a fully underwritten life insurance policy if the cost of a life insurance is your number one factor and primary concern for you.

Non Med Policies Have Lower Coverage Amounts

Non Medical Exam life insurance policies are easy and approved quickly. However, there are maximums on the benefit coverage amount that you can select. Life insurance companies don’t offer the same benefit amounts that fully underwritten policies have. Each company is different, but the total life insurance coverage can vary.  You can typically find companies that range in benefit amounts from $100,000 up to $500,000. If the life insurance is linked to your mortgage, the coverage amount might be a bit more.

If you are in need of more life insurance coverage, you can shop policies from multiple life insurance companies. You can “stack” policies from multiple insurance providers. The alternative is to apply with a traditional term life insurance policy with a medical exam.

Is A No Medical Exam Life Insurance Policy Right For You?

No exam life insurance policies are ideal for young adults who do not need a lot of coverage. The fees for traditional life insurance for young people are about the same for no medical exam policies, so it makes sense for them to get their policy as fast and easy as possible without the exam. Or if you need a policy quickly or are just too busy to do an exam, then no medical life insurance is the way to go. In all other instances, it is advisable to get traditional term life or permanent life insurance.

Buying a non medical exam term life insurance policy is ideal for many. They are a great choice for young buyers who will not need a life insurance policy with a huge benefit amount. It makes a lot of sense for young people to purchase their policy quickly and easily without an exam.

One reason is that the fees for a traditional life insurance policy with a medical exam are pretty much the same as the non medical exam life policy. If you are an extremely busy person and do not have the luxury of time – a non med policy may be the best option to secure coverage. It is the way to go when time isn’t on your side.

For a good percentage of our clients, a fear of needles is a huge factor. Some people just can’t stand the idea of getting blood drawn and want any other option that will eliminate needles.

If you don’t fall into any of these categories, then a traditional life insurance policy would be advisable.

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