No Medical Exam Life Insurance Options for High Risk
Article by Angela Rosas
It is true that most people can easily find insurance coverage from the most popular options. While they provide coverage to most, not all, however will qualify. Some people will have to look towards different variations due to life circumstances that will prevent them from qualifying from common products.
Issues such as health problems or old age can cause a person to be denied coverage. However, those who are in this position are not at a lost, there are policy options which do not require a medical exam, and individuals having trouble qualifying may want to consider one of the policy types featured in this article.
When applying for most policies, insurers follow a basic application process, one that usually requires a medical examination. The purpose of the examination is to assess the risk of the person the carrier is to insure. This serves as proof of insurability. However, there are life insurance products that require no exam or proof of insurability and there are some no-exam policies in which you cannot be turned down from.
Policy varieties, which do not require medical exams, are popular amongst those individuals who carry a high risk that hinders their insurability.
-Simplified issue life insurance: a variety of a no-exam term life policy. However, it is possible to be denied coverage from this type of policy. Although there is no medical exam, the risk of the applicant is evaluated through the underwriting process. This achieved by asking a variety of medical questions and reviewing medical records, instead of an exam.
-Guaranteed acceptance/Guaranteed issue life insurance: also, a no-exam term policy; however, it does not include an underwriting process. For this policy variation, you cannot be turned down, because there are no medical exams or inquiries. Keep in mind though, because of its guaranteed acceptance, if it a pricey option.
-Graded benefit life insurance: this no-exam, whole life policy is designed to last the remainder of the insured’s life. Graded benefit requires no medical exam or health questions; however, it does have both minimum and maximum age restrictions. This policy is expensive, and does not pay out a full benefit if the insured dies during the first two years of coverage. If this does happen, the insurer will refund the premiums that had been paid.
When considering a no-exam product it is crucial to understand both the pros as well as the cons. First, it is going to be more expensive than an ordinary term of whole life product. Second, ordinary life insurance policies will have a larger death benefit.
Because of this, even if you have been denied coverage in the past, a no-exam life insurance policy should be your last resort. Contact a life insurance agent who specializes in attaining life insurance coverage for high-risk applicants. They will be able to help you review you options and figure out if a no-exam policy is best for your particular needs and situation.
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