Life Insurance Without a Medical Exam – How Much Is Enough?
Are you worried that because of your lack of life insurance you won’t be able to take care of your family or business’ future? Is worrying about medicals holding you back? Rest easy! There is a solution designed just for you.
How much life insurance do you require?
The well-being of your family or business is a priority, so you will want to put the right amount of life insurance in place no matter your health.
The first thing you should determine is the amount of coverage you will need to make sure your family or your business can succeed even when you are no longer around. Determining how much life insurance you’ll need during a sit down with a trained insurance professional is going to be your first step.
For the protection of your family, you have to estimate the costs for yourself, your funeral, as well as any income you would want your family provided with, and any legacies you would like to leave to your choice of charities. Optionally, you may want to leave an emergency fund or education funds to your loved ones and help eliminate debts. When doing your analysis, make sure to take into consideration the eroding power of inflation over time. You will be able to find online tools to help calculate your life insurance needs, but a professional broker is the best way to get the advice you need.
As a business owner, to determine the life insurance needs you have, you’ll need to estimate the value of your portion of the business if you are in a partnership or a shareholder position. Using a professional will help you determine the fair market value of your business and ensure you have the right amount of life insurance in place. Don’t forget to also consider the potential future growth of the business.
With the right amount of life insurance in place, other shareholders will be able to buy out your portion of the business, making it simpler for family and your partners and helping to ensure the business continues to flourish if you pass away. Should you have very specialized expertise in the business, your business may want to purchase key person life insurance to assist in finding a suitable replacement for when you are gone.
One you have decided on the amount of life insurance you require to protect your family or business, you need to decide whether you will apply for a life insurance with or without medical checks. If you prefer without, then you have a few options to consider.
Factors that influence no medical life insurance rates
When selecting a no medical policy, the insurance companies will have much less information to base rates on, so premiums will usually be higher compared to a traditional life insurance policy. What also affects life insurance rates are metrics such as age, sex, whether you smoke, and how much coverage you choose.
Your premiums will also be affected by your answers to a medical questionnaire if you decide on purchasing simplified issue life insurance.
Can I be denied for No-Medical life insurance?
Due to the lack of medical testing in a no medical life insurance policy, you cannot be denied coverage for most types. However, in some cases, your age and health may prevent you from qualifying for coverage (some coverages are not offered if you are 75 or older). For guaranteed instant issue life insurance, you are almost certain to be approved.
In addition to life insurance coverage, some no-medical companies will also offer additional riders or extended coverage:
- If you happen to contract a critical illness while you own a no medical policy
- Accidental death coverage that pays out should you die from an accident
As well, some no medical insurance companies stop payments for no medical policies at a certain age, such as 95.
To ensure you have determined the right amount of coverage you need to ensure the well-being of your family or business in the event of your passing, arrange an appointment with a trained life insurance professional today.
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.