Everything you Need to Know about No Medical Life Insurance:
Imagine if there was a life insurance product that allowed you to leave money to your loved ones without having to jump through hoops like completing a medical exam! Well it’s time to stop imagining because it exists! No-medical insurance offers a wide range of options for a wide range of people. Whether you are young or old, in poor or great health, you can find the no medical life insurance that is right for you.
What is no medical life insurance?
Unlike other life insurance products, no medical life insurance doesn’t require you to go through a standard medical exam. If you have health issues, a busy schedule, or would prefer not to be analyzed by a nurse, this is the option for you. While in some cases, no medical life insurance coverage can cost a little more than standard insurance, the convenience it provides can’t be priced.
How does no medical life insurance work?
No medical life insurance comes in four main forms: simplified issue, guaranteed instant issue, and group coverage.
Simplified issue life insurance is easy to apply for as it does not require any medical testing, just a short and easy questionnaire to gain a better understanding of your health including any former serious illnesses or hospitalization. Don’t worry, you can still apply for simplified life, whole life, or term insurance if you have been hospitalized for any disease or previously been rejected on a standard life insurance application; however, approval is not guaranteed. Coverage levels are typically $500,00 or less.
The application process for guaranteed issue life insurance is even easier because there is no questionnaire. Why? Because the coverage is quite limited. If your death is not accidental, you can receive up to $25,000; however, if you die within the first two years of the policy your beneficiary only receives an amount equal to your payments. This is a great insurance option if you are looking for a quick application process, but younger, healthier applicants will pay a higher premium than they would for standard life insurance.
They don’t call it guaranteed instant issue life insurance for just any old reason. The application process is accelerated and can be completed online or over the phone with an advisor. It includes a few health questions to gather some simple information about your driving record, prescription drug history, and any previous experience with life insurance applications. To determine if you qualify, insurance companies use intelligent computer programs. However, you may go through underwriting and will not know if you qualify automatically. Some companies offer up to $1 million in coverage without any medical tests, but this is usually only available for younger, healthier folks.
Group life insurance is accessible through your company’s group plan, and will only end if you are fired or leave your job. The premium you pay for this coverage is based on a group of people, and most of the time it is paid for in whole or in part by your employer. This means the application process does not involve any medical underwriting or health questions, unless you are given the opportunity to apply for additional coverage. In this case, the questions are less comprehensive than some other no-medical applications. Group life insurance is easy to get but is usually only one to two times your salary. If you have a young family this coverage may not be enough. Additional coverage may be more expensive than another type of life insurance if you are a young, healthy individual.
Alex Saltykov has a broad experience in advising insurance clients both in North America and Europe while he was working for one of the leading management consulting companies. His areas of expertise are insurance, innovation, IT, and operations.
If you’re too busy to deal with medical tests, or would rather just avoid them altogether, no medical life insurance is for you! Contact us and we’ll help you determine what policy bests suits your needs.