Term Life Insurance No Medical
Term life insurance with no medical exam is an ideal solution for those with health conditions that make it difficult to pass a traditional medical exam. Most policies feature an easy application process that takes only minutes to complete.
These policies also offer a conversion option that lets you convert all or part of your term-life coverage to permanent whole-life coverage at any time.
Cost
The cost of term life insurance with no medical component varies based on the policy type and amount covered. For instance, a simplified issue policy from Haven Life with a 20-year term and $100,000 in coverage could cost as little as $10 per month for a 31-year-old nonsmoker in good health.
Guaranteed-issue policies require no medical exam and simply ask a few basic questions about your health, making them simpler to get approved for. Unfortunately, they're also more costly than traditional term life policies.
Level-term policies tend to be less expensive than guaranteed issue policies because they take into account other risk factors like your occupation and lifestyle choices. They're also an attractive option if you wish to accumulate cash value within your policy over time.
Finding the ideal life insurance policy requires taking into account your requirements and comparing different options. An insurance agent can help assess what you require, then suggest a policy that fits within your budget and meets your expectations.
Coverage
Term life insurance with no medical exam is one of the simplest types of life coverage you can acquire. These policies last a fixed amount of time (usually several years) and pay out a lump sum to your beneficiaries upon death.
These policies tend to be cheaper than fully underwritten term policies, but they come with certain restrictions. Most no-medical-exam life insurance policies have maximum coverage amounts that are limited to $500,000 or less.
Typically, these services are only available to applicants under the age of 65; however, some companies provide them to older clients as well.
MoneyGeek's Verdict: AIG's Trendsetter LB and Super Series products offer up to $2 million of guaranteed issue life insurance without a medical exam. Furthermore, these policies include an accelerated death benefit for terminal illnesses.
The company provides permanent no-medical-exam life insurance with several riders you can customize, such as a living benefits rider that reduces your policy's death benefit in case of death and child term coverage.
Underwriting
Term life insurance no medical is a type of life insurance that doesn't require you to undergo a physical exam for eligibility. However, you must still answer some health questions in order to be approved.
According to your policy, you may still need to provide information about your family's medical history and current medications. Furthermore, some insurers may request access to past medical records.
These policies can be an attractive option for healthy applicants who don't mind skipping interviews and tests. Unfortunately, they tend to be more costly than other life insurance options and typically provide lower coverage amounts.
Companies providing no-medical-exam life insurance use big data and sophisticated algorithms to determine if you qualify for their policy. They then ask minimal health questions online and adjust your premiums based on their findings.
Benefits
Term life insurance is a contract between you and an insurer that promises to pay out a lump sum death benefit in cash to those designated by you (known as your beneficiaries) upon your passing. These policies can be purchased for any term (usually 10-30 years) at lower costs than whole-life insurance policies.
Before an insurer will provide you with a policy, they typically need to assess how much risk you present. This may involve performing a medical exam as well as asking questions about your lifestyle and occupation.
Technology can help some insurers assess your answers more accurately, which could enable them to approve you without needing the exam itself. If you need coverage quickly and don't want the hassle of taking a physical, this may be an ideal option for you.
