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No matter who you are, like it or not, life insurance should be part of your plan. Sure, it might seem like those annoying medical checks get in our way, but did you know that there are some types of insurance that ignore this part completely?

This is what you need to know. . .

What Is No Medical Exam Life Insurance?

No Trial Insurance is a life insurance policy that does not require the insured person to undergo a medical examination before agreeing to purchase the policy.

At first glance, this type of insurance may appeal to you. Many people have a real fear of doctors and everything medical. Others fear being rejected due to a pre-existing condition. When it comes to the whole thing, fear seems to be the main reason people go for a policy like this.

We want to give you an alert here: You will need to disclose any conditions you have on medical questionnaires. If the insurance company discovers that you have hidden something in your application and you end up dying, the beneficiaries will likely not receive the death benefit. And the. . . That's the reason you got insurance in the first place, right?

How does life insurance work without a medical exam?

In many ways, the process of not taking a test is the same as the process of normal life insurance. Once coverage is approved, you can simply pay a monthly premium for life insurance protection. And in the event of death with the current policy, the beneficiary will receive the amount of coverage. The obvious difference is the lack of an examination process.

But that's a big difference!

The job of the insurance company is to rate your insurance risks without a medical exam. They should carefully check your other documents with a fine tooth comb. Without the exam, they wouldn't know much about you and your health, so they have to cover their bases by charging more in insurance premiums. Sure, the no-test policy may be a bit quicker, but it costs more, sometimes up to twice as much as the test policy! Sheesh! We will talk more about that later.

What are the types of no exam life insurance?

Now we get to the essentials! Here are three types of life insurance without a medical exam.

Simplified version of life insurance

When applying for this type of insurance, you do not need to undergo a medical examination, but insurance companies will ask you a number of medical questions. The questions generally relate to your medical history, any recent hospitalizations, your height, weight, and drug and alcohol use. They can also search for other information about you, such as your car history or past life insurance applications.

If you want to get insurance quickly, you may be tempted to go the simplified issue route, but you will find that coverage is generally limited to $ 500,000 or less. If you make more than $ 50,000 a year, this is not enough insurance, because we recommend coverage of at least 10-12 times your salary. Also, you are not guaranteed approval. And the price of the coverage you get is very high!

Some companies have started offering accelerated underwriting (also called express approval insurance), which is similar to simplified issuance insurance. An expedited subscription replaces a medical exam with your own questionnaire.

To see if you qualify or not, the insurance company uses other data sources to get a better overall picture of your health without taking a test. It's very nifty, so they will check all available public records. These include property titles, criminal court records, bankruptcy documents, professional licenses, tax returns, and many more. But it is as expensive as it is simplified, if not more.

 

Guaranteed issue of life insurance

This type of insurance is really the last resort if you cannot find any other insurance due to a pre-existing condition. It is expensive because the insurance company does not even see your medical records. So from their point of view, it is very dangerous to be sure. And get this: Although it is called "secured" version insurance, it is not guaranteed. They have some "critical questions" on the application that will remove you from your eligibility for the program. The first strike!

A guaranteed issue policy is always a small policy for seniors (ages 50 to 85) for life. And when we say small, we really mean small! Your death benefits range from as little as $ 1,000 to an exceptional maximum of $ 25,000. Multiply two!

Plus, they have what they call the "gradual death benefit." This meant that the full death benefit was not paid even within the first two years of this policy. So if you can't get it, don't die too soon!

Group life insurance

Sometimes your employer will offer you a small life insurance policy. You do not need to answer any questions or take an exam, so it is a no exam policy. Your company offers this as an additional business benefit to the employee. An insurance company sets rates by looking at a representative sample of your company's employees. Typically, the business owner pays all or at least most of the premiums.

In most cases, this policy alone will not cover you completely. Dave Ramsay recommends obtaining insurance on your own. But if you can get it for free, it's a good deal. We love free! Just keep in mind that if your policy payment exceeds $ 50,000, any premiums the company pays is considered income and you will have to pay taxes on it. Also, the policy is not transferable if you change jobs.

How much coverage can you buy?

As you can see above, coverage without life insurance is lower than that of conventional insurance products, up to a maximum of $ 500,000 or less. And, as we will see below, they have a higher cost. The differences between the policies depend on your age, medical history, and income.

Dave recommends receiving 10 to 12 times your annual salary from life insurance. So if you make more than $ 50,000 a year, you probably need additional insurance because the $ 500,000 limit will not lower it. But if there are no other insurance options available for your specific case, then an insurance option without an exam may be the way to go. After all, some are better than none!

The cost of not having a life insurance medical exam

Insurance companies must make business decisions to ensure they make a profit. The insurance business, after all, is a business. To make sound decisions, they must collect as much information as possible. Risk is the main factor and, as Dave Ramsay says, insurance is about transferring risk. All the information that insurance companies collect helps determine the risk of being insured.

Once you complete your application with them, the insurance company enters all of your information into their little magic medical math machine. This not only determines your insurability, but also how much you will charge for your policy.

You see, the cost of not having life insurance during exams is usually higher than that of health insurance policies, because without your medical information, companies have to make an informed assumption about life expectancy. With these guesses, they take more risk for their insurance, so they have to compensate by increasing their rate.

Shouldn't I have a life insurance medical exam?

Let's face it: when you compare how much coverage you can get and what it pays for, having full conventional insurance with a medical exam always wins! Except in the stressful circumstances of an uninsurable medical condition, you should go ahead and get regular health insurance. The little annoyances will make the exam worthwhile in the end.

Don't be like most people and wait for the medical emergency to arise to realize that life insurance is a must. Take time now for your family to be cared for later. Once you have your conventional insurance, you will be happy to do so