Life insurance companies have been jumping on the no exam train. Companies like MetLife and Principal have decided to join Sagicor, Fidelity and the like in the no exam market. I also suspect there are more to come. Well what is no medical exam life insurance and why it so popular? Let’s weigh out it’s pros and cons.
No medical exam life insurance is what the name suggests it is. It’s getting life insurance without the exam. Now what that means for you is that the application and underwriting process will be a little faster. A traditional term life insurance policy will require a medical exam to take place at your house that is similar to a standard physical, which is then followed by 8 weeks of underwriting. With no exam it’s possible to get approved as quick as instant, to 3 days and with worst case scenario being 30 days with some companies. Also did i mention no needles!
Now I know the whole time you were wondering why wouldn’t every body do this? Well because it more expensive. By not doing the exam the life insurance company is taking on a bigger risk by insuring you so the premium can be higher than a standard policy for the same amount. Another downfall is that the coverage is capped. Most no medical exam plan will offer a capped coverage from 100,000 to 399,999 depending on which company you choose. Also not all no exam companies come with an option to convert the policy once the term expires. WIth standard term you can have the option to prolong your coverage or turn it to a permanent coverage once the term ends.
No medical exam life insurance is really for those that are looking to get life insurance fast or looking to get extra coverage on top of what they already have. The important thing to note is that while there is no exam there is still underwriting for a no medical exam life insurance policy. So the company will check your records to see if you are eligible. No exam is best for those who are fairly healthy, especially if you are looking to get coverage within a couple of days. It’s fast, convenient but has it’s limits.