The Pros and Cons of No Medical Life Insurance
No medical life insurance is a blanket term used to refer to several types of life insurance policies that don't require the recipient to complete a medical exam prior to obtaining coverage. While no medical life insurance can be enticing for any number of reasons (a checkered health history, busy schedules, instant coverage, and anxiety over taking medical exams generally top the list), the higher premiums you'll have to pay in order bypass a routine medical exam can make these policies tough to justify. That being the case, it's very important that you understand the different types of no medical life insurance policies that are out there, as well as their limitations, before you make the leap and sign on the dotted line.
The Wrong Reason to Get No Medical Life Insurance
Since some of the most oft cited reasons for seeking out no medical life insurance don't hold up under scrutiny, it's important to address some common misconceptions about life insurance no medical from the get-go:
- No medical insurance won't save you money --Even if your medical exam raises a red flag or two, an underwritten policy is almost always less expensive than one that doesn't require an exam at all.
- No medical insurance is not a guaranteed fallback if you've already been denied coverage --Insurance companies share medical exam results and reported histories of applicants with a national database, whether you're granted coverage or not. In other words, if you've previously applied for life insurance and been denied, your information is already out there for the taking.
- No medical insurance is not a way to cover up health problems and circumvent the system --Even without a medical exam, you still need to be honest about your health, past and present. If your provider finds that you falsified your answers on an application in order to obtain coverage, they can --and will --use those revelations as grounds to deny your heirs compensation.
That said, life insurance without a medical exam does serve a purpose, and it is still a valuable investment for those who understand what they're signing up for and stand to benefit from the specialized coverages that these policies provide.
"Guaranteed Issue" and "Quick Issue" Life Insurance
Tarzan say: "life insurance no medical exam!" Insurance professionals, on the other hand, have more eloquent names for these specialized policies, referring to them as "guaranteed issue" and "simplified issue" policies. Though neither policy requires a medical exam, they each serve vastly different purposes.
- Guaranteed Issue Life Insurance No Medical Exam --A guaranteed issue policy is exactly what it sounds like: you will not be turned down for coverage regardless of your health status, age, or other factors. There is a catch, however. First of all, these policies are the most expensive in the business since there is almost no underwriting involved. Second, providers who specialize in guaranteed issue life insurance deal almost exclusively in short term policies with low face values. Industry leader Globe Life Insurance, for example, only offers policies in the amounts of $5,000, $10,000, $20,000, $30,000, and $50,000 to their clients. Those amounts might seem inconsequential in an industry where $1,000,000 policies are commonplace, but they make sense when you look more closely at what those payouts are used for. Guaranteed issue policies are almost universally purchased to settle debts, pay off accrued medical expenses, and/or pay for funeral and cemetery costs when the insured passes away.
- Simplified Issue Life Insurance No Medical Exam --The other, more popular, no medical life insurance coverage is what's referred to as "quick issue" or "simplified issue" life insurance. While these policies do not require a medical exam to procure coverage, they're not guaranteed. Applicants still have to fill out a detailed health questionnaire which is used to determine premiums and eligibility. On the other hand, these policies are generally more forgiving about who they accept than standard life insurance policies, a fact that is reflected in their higher than average premiums. If you're seriously concerned that the results of a medical exam will preclude you from obtaining life insurance elsewhere, going this route might land you insurance coverage that would otherwise be denied. The main reason for the success of simplified issue policies, however, is convenience. You can hop on your computer, fill out an application, wait for approval, and pay for your new coverage all in one easy sitting.
Getting the Best Rates for Life Insurance No Medical Exam
Considering the higher average rates of these policies, it's even more important that you shop around and compare premiums before you buy, and online insurance quote services like NetQuote.com allow you to do just that. These insurance quote warehouses provide you with a host of quotes at the click of a button so that you can compare rates, coverages, and evaluate the services offered by different providers on route to obtaining the best possible no medical life insurance for you, your family, and your specific insurance needs.