Business Partner
Life insurance is one of the most important purchases you can make in your adult life. It not only ensures that your loved ones will be protected financially in case you die, but it provides peace of mind, which is priceless. The question is, why do so many people put off getting life insurance? You may think that the cost is the number one reason, but actually, many people simply don’t have time for the long application process.
Traditional life insurance companies require applicants to undergo a medical exam as part of the application process. The exam can greatly lengthen the amount of time it takes to get approved, which means you’re looking at a 4-8 week waiting period. In today’s world of instant consumer gratification and being able to purchase anything online immediately, having to wait such a long time seems unacceptable.
That’s why many insurers offer no exam life insurance, an alternative to traditional life insurance that allows you to skip the medical exam and get approval from the insurance company much faster. In some cases, approval is immediate while in other cases, it can take a few weeks. Either way is quicker than the timeframe offered for traditional policies, plus, you don’t have to take time out of your busy day to have a medical exam.
Disadvantages of No Exam Life Insurance
The main disadvantage of no exam life insurance is that it can sometimes be pricier than traditional policies. The cost, however, depends on several factors, including:
- Age
- Gender
- Smoker/non-smoker
- Health
- How long your policy is (if you buy term insurance)
- How much coverage you want
- The type of no exam policy you choose
To see what kind of monthly premiums you can expect in your particular situation, you can visit Sproutt.com for a free quote.
Another drawback of no exam life insurance that people cite is that coverage of no exam policies is limited. The good news is, that piece of information is fairly outdated. Today, there are plenty of no exam policies that offer up to $1 million in coverage.
How No Exam Life Insurance Works
The reason no exam life insurance used to have limited coverage was so that insurers could cover their risk. With traditional life insurance, the applicant undergoes a medical exam and the results get sent to insurance underwriters, who assess what kind of risk the applicant poses to the company. Since the details of the medical exam are current, underwriters can accurately assess the state of the person’s health and how big of a risk they pose.
When there is no medical exam to review, underwriters aren’t able to get an accurate view of the applicant’s health. If the insurer agrees to offer coverage, it means they are taking on quite a risk. Hence, coverage is limited and premiums tend to be high.
Today, however, underwriters don’t need a medical exam to get information about applicants. There is so much digital information available, including your previous life insurance applications, driving records, even pharmacy records. It’s completely legal for a life insurance company to request this information about someone who is applying for life insurance. Moreover, the information can be transmitted in seconds, so if you apply for no exam life insurance, you can get an answer immediately.
Benefits of No Exam Life Insurance
Due to the nature of no exam life insurance, there are many benefits. These include:
- Fast approval – As discussed above, no exam life insurance can be obtained on the spot. Traditional policies require a 4-8 week waiting period to just get an answer, and if the answer is no, you’re left without coverage. With no exam life insurance, the approval process is quick.
- Easier approval – In addition to fast approval, it’s also easier to get approved for no exam life insurance. People who have serious medical issues may be denied coverage from a traditional policy. Certain types of no exam life insurance grant coverage to anyone who applies, regardless of health.
- No medical exam hassle – Taking time from your busy schedule to include a medical exam can be difficult. No exam life insurance lets you skip all the hassle and get what you want immediately: life insurance.
- No needles – Additionally, skipping the medical exam means that you don’t have to undergo the blood test that’s included. People who suffer from trypanophobia, extreme fear of needles, can get the coverage they need without having to confront their worst fear.
High Coverage from No Exam Policies
Getting up to $1 million in coverage from a no exam policy is certainly possible, but bear in mind that this amount is usually reserved for people who are in fairly good health. It’s also important to remember that the higher your coverage, the higher your monthly premiums are likely to be. If you need that amount and can qualify for it, a no exam policy is an excellent tool to grant you all the benefits listed above plus the coverage you need.
