When no exam life insurance first came onto the market, it was mainly purchased by elderly people or those with serious health conditions. Today, more and more young, healthy people are buying no exam life insurance because of the sheer convenience of it. Here we’ll discuss the pros and cons of no exam life insurance and whether the higher cost is worth the convenience.
What is no exam life insurance?
No exam life insurance is a life insurance policy that you can get without having to undergo a medical exam. Traditional policies require an exam as part of the application process. That’s how underwriters assess the risk that each applicant poses to the company. Applicants who pose a higher risk (i.e. have various health problems) are given higher monthly premiums. In some cases, their health problems are deemed too risky and they are denied coverage altogether.
With no exam policies, applicants can skip the medical exam. Some policies include partial underwriting while others are not underwritten at all. Either way, the insurance company doesn’t gather as much information about each applicant as they would for a traditional policy. This means the insurer is taking on a greater risk. Therefore, monthly premiums tend to be higher. You can get a free quote here.
The higher cost is basically the price you pay for:
Is the Cost Worth the Benefits?
The question of whether it’s worthwhile to pay a lot of money for a life insurance policy is highly personal. There are many reasons why people choose no example life insurance, but here we’ll discuss the most common ones.
They Need Life Insurance Quickly
Some people find themselves in a situation in which they need life insurance quickly. Traditional policies can take up to 2 months to be approved for, and that’s only after you’ve had your medical exam, which may not be scheduled right away. No exam policies offer immediate approval or approval within a few weeks, which is still much faster than traditional policies. Reasons people may need life insurance quickly can be if they’re applying for a small business loan, they need to finalize a divorce settlement quickly, or if they need to arrange urgent travel plans.
They’ve Been Denied Coverage for Other Policies
Some people have serious medical issues that preclude them from getting coverage from traditional policies. In these cases, no exam life insurance can be a lifesaver. Even a policy of just $25,000 can still provide a small nest egg for loved ones, or at the very least cover final expenses. While not all no exam policies offer guaranteed approval, there is one kind that does: guaranteed issue. Anyone who applies for this kind can be approved, no health questions asked.
They’re Afraid of Needles
Trypanophobia, also known as needle phobia, is a recognized disorder in the Diagnostic and Statistical Manual of Mental Disorders. It affects about 50 million Americans, making it one of the top 10 adult fears. Since the medical exam for life insurance includes a blood test that means people with needle phobia won’t be jumping on the bandwagon. In fact, they’ll be running in the opposite direction. No exam life insurance is a way that people who have this extreme fear of needles can still get the coverage they need.
They’re Too Busy
Applying for life insurance is a long and tedious process, and in today’s busy world, many people simply don’t have the time. No exam life insurance applications can be completed in one go. There aren’t multiple steps like in a traditional application. Just apply online and that’s it. In some cases, approval can be instant. Either way, no exam life insurance takes the tedium out of the life insurance application and allows people to continue with their busy lives.
What About You?
When considering whether no exam life insurance is worth the higher cost, you have to consider why you need life insurance. All of the reasons above are valid, and they can justify paying more in monthly fees. At the same time, you may want to think about whether you might be able to overcome these reasons for the sake of saving money. Those who have mild needle phobia, for example, may learn soothing techniques to allow them to get through the blood test. Those who have travel plans may be able to delay them in the hopes of locking in lower insurance rates.
Whatever your reason is for wanting no example life insurance, only you can decide whether it’s worth the extra expense. If you decide that you do want to get a no exam policy, make sure to shop around for the best rates.