5 Misconceptions about No Exam Life Insurance

Ross Quade | Life Insurance | 17 Jul, 2015 | No Comments

Life Insurance

There is a growing trend in the life insurance world to obtain no exam life insurance. Many people that are too busy or just do not want to be bothered with the medical component of obtaining life insurance are opting for this type of insurance despite its higher cost. Even though it might seem like a more convenient option, there are many misconceptions surrounding this insurance that need to be ironed out in order to fully understand what you are getting yourself into.


1. Everyone Can Qualify


It seems to make sense, if you do not have to take a medical exam, why would you not qualify for no exam life insurance? The truth is that even though an actual physical exam is not performed in order to obtain the insurance, there is still a bit of investigation that occurs regarding your health. One of the first things you do when you apply for the insurance is to answer questions regarding your health. If you do not pass this portion of the screening for life insurance, you will not get approved for no exam life insurance. The insurance company uses this screening as a way to find any red flags. If it turns out that you have any of these red flags you can still qualify for life insurance that is considered a “graded death benefit.” This basically means that you have a waiting period before your benefits kick in, but you still get the coverage eventually.


2. You Can Hide an Illness


Many people mistakenly think that an insurance company will not find out if they have been diagnosed with an illness if they opt for the more expensive no exam life insurance. This is the case for those with cancer, diabetes, or any other serious illness. Even though you are not having a medical exam performed in order to obtain the life insurance policy, however, the company will still know about it. They consult with the Medical Information Bureau to see your past medical history. Any information pertaining to your illness that has been reported to insurance will show up on this report, which means the life insurance company will know. The good news is that you are not automatically denied as a result; you just might pay higher premiums.


3. There is Only One Option


No exam life insurance is very similar to standard life insurance even though it does not require a medical exam. You still have many options when it comes to the type of coverage that you want. What will differ are the premiums and the terms of the coverage, but that is it. In the end, it is you that needs to decide what type of coverage is best for your family, whether you are looking for final burial coverage or you want a policy that will care for your loved ones’ finances for many years to come.


4.  No Exam Life Insurance is Unaffordable


Many people mistakenly think that because there is no medical exam, this type of life insurance is astronomically expensive. While the premiums are higher in order to make up for the riskiness of not having a medical exam tied to the insurance, they are not unaffordable for most. In general, you can expect to pay around 20 percent more than a standard policy. If there are good reasons for you forgoing the medical exam, however, that 20 percent could be well worth it to you. Not every insurance carrier is going to charge a much higher premium for the convenience of not having an exam – it all comes down to the specifics of your application. If you have a blemished medical history or are currently ill, you might end up paying more than someone that is in perfect health and never had any problems before, but that would be the same case with standard life insurance too.


5. Not Many Carries Provide this Insurance


The truth is that no medical life insurance is becoming more and more common and many carriers are offering it. The industry as a whole realized that there was a large gap in coverage because of the need of the no exam policies being neglected. This has caused many carriers to begin providing this type of policy. Of course, every carrier has a different technique for providing this type of coverage as well as varying costs. If you are in need of a policy that does not require a medical exam, it is best to shop around to find the best rates rather than settling for the insurance policy that you are offered first.


No medical exam life insurance is available with many different insurance companies and at affordable rates. If you have a reason to want this type of insurance, it is worth it to shop around. Don’t let the misconceptions following this type of coverage scare you – there are many policies out there available for consumers. Just make sure to have all of your ducks in a row – you will need to answer a multitude of questions and have your medical history examined in order to qualify. Just like any other type of insurance, you will need to qualify, but once you do, you will be able to have the coverage that you need at a price that you can afford.


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