Term life insurance with no medical exam

Life insurance is not something people like to think about. But for anyone with family, loved ones, dependents and any type of debts, a life insurance policy can make things a whole lot smoother after you pass on. It is therefore important to learn as much as you can about the different types of life insurance available and the pros and cons of each kind. One such kind of insurance that you might see advertised everywhere is No Exam Life Insurance. Also referred to as Simplified or Guaranteed Life Insurance, this kind of policy does not require any medical exam. At a glance, the advantages of a term life insurance policy with no exam are:

No medical exam or investigation of medical history is required. Easy to qualify for with no waiting period or follow up required. The application process is fast and simple and the underwriting process is instant. Coverage is available immediately and there is normally a 30-day money back guarantee. Rates are guaranteed and flexible payments are available. Terms are possible for periods of 10 to 30 years. Policy can also be renewed at the end of the term.

A term life insurance policy with no medical exam offers the same benefits as a policy that requires a medical exam does. However, if you are suffering from any serious health problems such as cancer, diabetes, heart disease, stroke, liver disease, mental or nervous disorders, you may not qualify for this type of insurance.

If you are planning to take out a no exam life insurance policy, be aware that the laws that govern life insurance companies vary from state to state, so check with your agent or insurance provider about any restrictions applicable to such policies in relation to various health conditions in your state / locality.

In short, companies issuing such policies have decided to offer the option of no exam insurance to those people who prefer not to have a medical exam but still opt for a term life policy. The company will in this case slightly lower the coverage of the holder as compared to what he or she would have been normally covered for, if a medical exam had been conducted. The amount that your family will finally receive after your death will be thus significantly less than the death benefits from a normal policy. Since no medical exam is required, the insurance company is also taking a greater risk, so the premiums of such policies are higher as well.

In the event that you have withheld a medical condition or lied about any information in order to qualify for a no exam policy, any claim with be considered immediately invalid. The company is then fully within its rights to not payout and change the terms without your approval or knowledge. Be wary of this type of policy being offered by financial institutions whose primary business is not the provision of insurance services. Finally, always make sure that the insurance company has been accredited by the Better Business Bureau to ensure quality and reliability.

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