Most people know that life insurance is important. That doesn't always ensure that they'll take action and buy a policy early in life. That's a shame because life insurance is cheaper and pays off if you buy it in your 20s. With a very good policy, you may even be able to retire early.
If you are considering life insurance without getting a medical exam, be sure to consider these 5 things and discuss your options with your local, independent insurance agent.
1. What Is No Medical Exam Life Insurance?
As the name implies, "no medical exam" life insurance is a policy you can get without taking a medical exam.
With traditional life insurance, you are required to divulge your personal and health information to the prospective life insurer before they agree to insure you. You also need to pass a medical exam so the insurer can assess whether you are eligible for coverage.
A life insurance plan without a medical exam lets you bypass that process. Instead, you'll answer some basic questions about your health information. Then the insurer will determine your coverage based on your answers.
2. No Medical Exam Policies Offer Certain Advantages
Do you want your life insurance policy coverage in days rather than weeks? Do you prefer not to go to a physician because you have some concerns about medical tests? Do you want to apply for coverage online or over the phone?
If you answered yes to those questions, then a no medical exam life insurance could be the ideal policy for you. However, that may be the extent of the advantages that these types of policies offer when compared to other types of policies.
3. It's Not Without Disadvantages
Now at this point, you could be thinking that a life insurance with no medical exam sounds too good to be true. And you're right. That's because life insurance policies without a medical exam tend to cost more.
What that means is you'll pay higher premiums when compared to a life insurance with full medical underwriting. If your premium is not higher, you will likely get limited coverage, meaning that your policy will pay less at your death.
Consider what a no exam life insurance plan means for an insurer. For them, it means a higher risk. A complete medical exam gives insurers confidence that you are a healthy applicant.
4. It's Not a Way for You to Hide Your Health Status
Can you get no medical exam life insurance even if you don't have a pristine medical record? Probably not. If you lie on the health questionnaire to hide your less-than-ideal health, the insurance company will likely find out anyway. There are ways for insurers to cross-check your answers.
Underwriters can check your pharmacy reports and motor vehicle records. They can also check with the Medical Information Bureau, which is a nationwide database that contains basic information for insurers.
5. An Independent Insurance Agent Can Help You
Be sure to do your research and talk to an independent insurance agent who can help you compare quotes from different insurance companies, and may be able to find you a policy that meets your needs. Independent insurance agents already work with several insurance companies, not just one, and can help you determine whether a no medical exam policy would be right for you and your family. An independent insurance agent can also find you options that fit your budget and financial needs for the future.
Don't be afraid to ask questions and shop around to find out whether a life insurance policy without a medical exam may be right for you, and then to find the best policy from a reputable company.