Buying term life insurance online should be like ordering a book. Or a movie. Okay, maybe not that easy, but it should certainly be easier than the purchase of a car.
Sadly, it’s not. Not even close. Sure, it’s easy to get term life insurance quotes online. There’s no shortage of websites offering them. But that’s the easy part. There’s a whole application process that comes after the quote. And that process can take 4-6 weeks to complete. Some people can wait that long, either because they have other coverage or want to save money by going through underwriting. But others can’t wait. They need it now. For a trip, bank loan, or just because they’ve put it off for too long already. No medical exam term life insurance was made for this select group. It was also made for people who simply do not want to complete an in-home medical exam.
How No Medical Exam Term Life Insurance Works
These are the most important things to know:
No medical exam required — No exam means no blood or urine samples. And no examiner visiting your home.
It’s faster — Way faster, like a cheetah racing an elephant faster.
Coverage is limited — $1 Million is the current maximum. But you can buy more than one policy from different companies.
There are age limits — Age restrictions vary by company and amount. The maximum age ranges from 60 to 70.
It may cost more — Depending on your age, the coverage amount and other factors, you may end up paying more for a no medical exam term life insurance policy. But not always. It’s worth the time to take a look. And remember, with a no medical exam policy you’re paying for speed and convenience. You’ll need to decide how much that’s worth to you.
You may not qualify — Some no medical exam term life insurance policies are tougher to qualify for. Without the exam, the company has less information to go on. If you have specific medical conditions or history, the company may ask you to complete an exam or even decline your application.
Many term life insurance carriers require a medical exam when you apply. Some don’t. Here’s a look at the impact of having an exam or not.
Term Life Insurance With No Medical Exam
Term Life Insurance with no medical exam has a tendency to be more expensive than medically underwritten policies. That’s because, generally speaking, the carriers average out everyone’s risk and charge accordingly. So, if you are in good health but choose to purchase term life insurance that does not require a medical exam, you may end up paying a higher premium than necessary.
Most of the life insurance carriers that do not require a medical exam will still inquire about your medical history and lifestyle. Based on your answers, they might set the premium rates higher or lower.
Some companies issue policies without asking any questions about medical history. This increases the risk to them, so they tend to charge higher premiums and set lower coverage amounts.
Term Life Insurance with a Medical Exam
It might seem inconvenient (or even unpleasant) to get a medical exam, but it can benefit you.
The insurance carriers that offer term life insurance with a medical exam, require an exam to get an accurate idea of your health situation. It helps them to rule out health problems, identifying conditions that might increase your risk of dying. Once they know about your health, they can assign you an appropriate rate based on risk. If you’re healthy and your risk of dying seems low, you’re likely to get a lower rate than someone with health issues.
The medical exam is usually performed by a paramedical professional or nurse. For your convenience, you can schedule it at your home or place of work. It usually takes about 30 minutes or less. The exam consists of basics such as checking vital signs, a blood test and urinalysis. In some cases, the carrier may want additional tests, such as an EKG/ECG.
While having a medical exam isn’t usually something to be concerned about, be aware that it can reveal a health condition you weren’t aware of. Also, if you are declined term life insurance based on what the exam reveals, it could impact your ability to become insured elsewhere.
Term Life Insurance With a Conditional Medical Exam
Some term life insurance carriers require a medical exam only if it seems warranted after asking health and lifestyle questions. For example, if they find out that you are a smoker, had a serious illness or want a high coverage amount, they might require an exam.
To learn more about term life insurance and the application process, contact AIG Direct today. Our licensed professionals can help you decide if having a medical exam as part of the application process makes sense for you or not.