Term Life Insurance with No Exam are types of policies that do not require you to have an exam to get formal offer from the carrier.The process is you will fill out an application and answer fairly typical health questions.

The underwriters will base their decision off your application as well as checking the MIB (medical information bureau) for any adverse history of insurance underwriting.When you decide to buy this type of plan you get very quick approval and the underwriting can take less than half hour to issue your policy.The bad part is or course that you in most cases will pay quite a bit more in premiums for the coverage.

Advantage’s vs. Dis-Advantage of No Exam Term Life Policies

Advantages:

  • Policy could be issued in under half an hour
  • No Para Medical Exam is needed for completion
  • Great if you have slight health impairments (like arthritis)
  • If you have MIB hits that other insurance companies have submitted you’ll know quickly

Disadvantages:

  • Premiums will be higher than fully underwritten policy
  • Face Amounts are limited, some carriers will go as high as $300,000
  • You don’t get a free exam paid by the life insurance carrier

These are just a few of the advantage and disadvantages of these types of policies.  Personally I purchased one of these plans a number of years ago and it fit my needs at that time quite nicely.

Talk to your life insurance broker or agent and make sure they know exactly what you need the policy for in your planning.  Also get quotes from a number of different top carriers for comparison.  Get quotes for a fully underwritten policy and then get the no exam term life insurance policy quotes.

Get both plans side by side then decide if the ease of obtaining the no exam policy out weighs the time it takes for a completely underwritten plan.Waiting for a couple of months and applying for a fully underwritten plan could save you around thirty to forty percent in premiums.

The cousin policy to no exam life insurance is the guaranteed issue life insurance policy or sometimes referred to as graded premium life.  This type of plan you would seek out if you have serious health issues and have been declined by the traditional life insurance carriers.  Premiums are high and the death benefit is graded, meaning the longer you live you obtain a higher death benefit.

 

 

 

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