Life Insurance No Medical Exam
The most common reason people look for life insurance no medical exam is because they have health issues they believe may cause their application to get turned down.
Life insurance companies are quite aware of why people are looking for life insurance no medical exam policies and they know there is a market for them. You will find these policies promoted under names like "guaranteed issue" or "simplified issue" or "quick issue" policies.
The life insurance companies offset these high risk situations by setting conditions that applicants must meet to qualify. They often limit such policies to small face amounts. The rates are usually high and, in fact, you may pay more in premiums than the face amount of the policy.
They may add further conditions about paying benefits within the first, second or even third year the policy is in effect. There may be a waiting period before the policy pays benefits. Some of these policies are sold to anyone who applies and pays the premium. Others ask a few medical questions. Remember, sometimes it's a "no exam" policy, and sometimes it's a "no question" policy. The less information you are asked to provide, generally the lower the face amount and the higher the premium. This type of policy can be offered as an employee benefit, especially in large organizations where the risk is spread over a big enough group to make the premiums affordable. You might even be able to add more coverage to such a policy without medical exam or questions. If you find yourself in this situation, ask if you can convert the group policy into an individual one if you leave the company. Other groups such as unions, trade associations and so on may also have group policies that don't require any medical exam. On the plus side, assuming you have been honest in answering their application questions, they cannot cancel your policy if you develop health problems later so long as you continue to pay the premiums. The wisdom of the industry seems to be that you should not choose a no medical exam life insurance policy if you are healthy. You can often find better coverage at better rates by looking at other types of policies that do require you to provide proof of insurability. It can be worth your while to at least look at the questions on a simple application. They may not even ask about the health issues you are worried will cause you to be turned down. If you do decide to answer the questions on a simple application form, it is extremely important that you give honest answers to the questions because incorrect information could lead to a refused claim. Be sure you understand all the conditions and limitations before opting in. If you can't find a life insurance no exam offer to fit your needs, you may qualify for mortgage life insurance or credit life insurance that does not require a medical exam. At least these specific debts could be paid off and provide some relief for your beneficiaries. By taking the time to investigate no medical life insurance, you may find yourself eligible to get some life insurance coverage when you had thought it was impossible to get coverage at all. As always, once you have done your homework, it will pay to shop around for the best rates.
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