No exam life insurance is becoming increasingly popular among millennials and Gen X-ers who live busy lives. Traditional life insurance applications require a medical exam and a lengthy medical questionnaire, and then it takes 1-2 months to get an answer. With no exam life insurance, the application process is short and sweet. Some no exam policies include a short health questionnaire while others don’t ask any health questions! And of course, you get to skip the medical exam, which makes the entire process much more convenient.
What is No Exam Life Insurance?
No exam life insurance is exactly what it sounds like — life insurance that you can get without the need to undergo a medical exam. Otherwise, it offers covers just like regular life insurance policies and requires the payment of monthly premiums in order to maintain that coverage.
However, one common misconception is that no exam life insurance doesn’t require any health information, and that’s not the case. There are several types of no exam life insurance — some require health information, while others don’t. All allow you to skip the medical exam.
Types of No Exam Life Insurance
There are several types of no exam life insurance. Some are more suited to millennials and Gen-Xers, while others are better suited for seniors. Read on to find out what type of policy would be best for you.
Simplified Issue Life Insurance
Simplified issue is term life insurance that requires applicants to answer some health questions. Additionally, some insurance companies collect information about applicants from previous insurance applications, pharmacies, and the DMV (with permission, of course). Simplified issue is the hardest type of no exam policy to qualify for because there is a certain amount of underwriting involved.
For people who have serious medical issues, this may be a problem. For people who are relatively healthy or have minor health issues, this works to their advantage. The underwriting allows the insurance company to get an accurate assessment of how risky it will be to offer you coverage. Statistically, people who are younger and in good health are not a big risk at all. Millennials and Gen X-ers often fall into this category. The lower the risk you pose, the lower your rates will be.
So while approval isn’t guaranteed, if you are approved, you are likely to get competitive rates. Get a free quote here.
Guaranteed Issue Life Insurance
Guaranteed issue is a type of whole life insurance that offers guaranteed approval to anyone under the age limit, usually 80 or 85. Absolutely no health questions are asked on the application and approval is granted immediately.
Of course, with a policy that’s so accepting, there are a few catches. First of all, coverage only goes up to $25,000. Second, monthly premiums are very expensive. And finally, guaranteed issue policies often come with a two-year waiting period. This means that if the policyholder dies within two years of policy purchase, the beneficiaries don’t get the death benefit. All they get is a refund of the premiums plus interest.
Due to the way guaranteed issue works, it’s best for older people with serious health conditions who wouldn’t be able to qualify for any other policy. The only case it would be good for millennials or Gen X-ers is if they too have a serious medical condition that prevents them from getting a different type of coverage.
Group Life Insurance Through Work
Group life insurance is offered by many employers and it doesn’t require a medical exam. If you work for a company, chances are you already have this kind of life insurance. However, because coverage is relatively low and coverage is contingent on you working at the same employer, many millennials and Gen X-ers use this as a backup insurance policy while buying an additional policy that offers better coverage. The benefit of group life insurance is that employers typically cover all or part of the monthly premiums.
Why Buy No Exam Life Insurance?
While no policy is perfect, there are several reasons why millennials and Gen X-ers choose no exam life insurance.
- Convenience – In today’s busy world, no exam life insurance is easy to get
- Skip the exam – No need to waste valuable time or force yourself take a blood test if you’re scared of needles
- Fast – Approval ranges from immediate to a few weeks. Traditional life insurance approval ranges from 1 to 2 months
- Competitive rates – Simplified issue policies can over rates that are fairly similar to those of traditional policies
If no exam life insurance sounds right for you, don’t delay any further. The younger you are when you buy life insurance, the better your rates are likely to be.
