As its name suggests, no medical exam life insurance is a type of policy that does not require you to undergo a medical examination (which typically includes providing a blood and urine sample) as a part of the underwriting and approval process.
Because there is no medical exam required, these policies can oftentimes be approved and issued much more quickly than a traditionally underwritten plan - and in some cases, no exam life insurance policies may even be issued on the same day it is applied for.
In many ways, a no medical exam insurance policy will work the same way that a fully underwritten life insurance plan operates. For instance, in return for a premium payment, the insured is covered with a certain amount of death benefit protection. Depending on the specific policy, though, it may be that only a percentage of the benefit will be paid out if the insured passes away within the first two years of purchasing the coverage. (And in some cases, the beneficiary may just receive the amount of the premiums that were paid in). If, however, the insured survives beyond the set time period, the policy's beneficiary will receive the full amount of stated benefit.
There are actually several types of no medical exam life insurance policies. These can include:
- Simplified Issue - A simplified issue life insurance policy will require the applicant for coverage to answer at least some health-related questions. The insurance carrier may also review the applicant's past health history and / or other parameters such as his or her driving record, and prescription medications being taken.
- Guaranteed Issue - With a guaranteed issue life insurance policy, there are generally no health questions on the application for coverage. Therefore, provided that the premium is paid, the coverage will be issued and it will stay in force.
Prior to making a commitment on a no medical exam life insurance policy, it is important to compare your available options. That is because coverage may differ from one insurance carrier to another.
One of the best ways to review the policy alternatives that you may be eligible for is to meet with an independent insurance agent who can show you plans - and premium quotes - from a number of different life insurance carriers. This can help you with narrowing down which one may be right for you.
Term Life Insurance
Term life insurance offers an affordable way to obtain the protection that you need for a set period of time. This type of insurance coverage can provide way to ensure that the balance of a home mortgage is paid for survivors, and / or that other financial needs are met in case of the unexpected.
Whole Life Insurance
Whole life insurance is a form of permanent life insurance coverage that offers a fixed
amount of protection, as well as a cash value component where the funds inside the
policy can grow and compound on a tax-deferred basis.
No Medical Exam Life Insurance
If you have certain medical issues, or you work in an occupation that is considered to be "risky," then a no medical exam life insurance policy may provide you with an avenue to obtain the protection you need for loved ones, but without having to undergo many of the traditional life insurance underwriting parameters.
Children's Life Insurance
While nobody ever wants to consider the passing of a child, unfortunately unanticipated accidents and illness can occur. Children's life insurance can provide financial protection during an already difficult time. But this type of coverage can also be used in
other ways, too.
Universal Life Insurance
Universal life insurance offers financial protection for loved ones and survivors, as well as a way to build up cash value. These policies are considered to be quite flexible, as the policy holder can typically alter the timing and the amount of the premium payment to meet their personal needs.
A guaranteed issue life insurance policy can provide those who have certain health
issues - including some serious conditions - to obtain the protection that they
need...even if they have been turned down in the past for traditionally underwritten