For many people, the medical exam is one of the most headache-inducing parts of the life insurance application process. Also called the paramedical exam, this 30-minute physical isn’t difficult — a technician or nurse will accommodate you at your home or office — but it’s still an extra step that many applicants would like to avoid.
It’s possible to avoid it with a no-medical exam life insurance policy. Whether you’re buying term life or whole life insurance, there are options that allow you to skip the medical exam and quickly buy life insurance with almost no waiting period.
What is a life insurance medical exam?
When you apply for life insurance, you’re required to go through the underwriting process, which typically includes:
Medical exam
Attending physician statement
Medical Information Bureau background check
Prescription history
Motor vehicle report
This is known as fully underwritten life insurance.
The insurance company handles most of the process and will arrange the medical exam. During the medical exam, a nurse or technician will take your blood pressure, and your height and weight. You’ll also be asked to give blood and urine samples.
Why do insurance companies make you take a medical exam? Because the cost of life insurance is largely dependent on your health; the more health problems you have, the riskier you are to insure, and the more you’ll pay for your policy. During the underwriting process, life insurance companies try to get a complete picture of your medical history and risk.
How does no-medical exam life insurance work?
No-medical exam life insurance usually comes at a higher cost than fully underwritten life insurance because the insurance company is taking on more risk when they haven’t fully assessed your health.
No medical exam life insurance and coronavirus
During the current COVID-19 pandemic, it’s understandable if you prefer to get a policy that doesn’t require going out and getting a medical exam. While a no medical exam life insurance policy can be costlier and might not always offer optimal coverage, you have a few policy options that don’t necessitate a medical exam:
SBLI, $500,000 through age 60
Pacific Life up to 1 million ages 50-69
Pacific Life, Lincoln National, Protective, Principal and many more 1 million under age 35
It’s important to note that getting a policy that doesn’t require a medical exam still requires recent medical records and doesn’t necessarily shorten the life insurance application process. If you want a faster turnaround time after you apply, you’ll have to get a plan with accelerated underwriting. An accelerated application also doesn’t require a medical exam, but not everyone qualifies and applications can be rejected at random.
Who should get no-exam life insurance?
The price of no-exam life insurance can greatly vary: It may be virtually the same price as a fully underwritten policy, or it may be much more expensive because it’s targeted to unhealthy individuals who pose a higher risk. It all depends on your individual life circumstances.
Here are some examples where no-exam life insurance could make sense:
You’re a 30-year-old male smoker who is otherwise healthy. By skipping the exam, you might get a better rate than with a traditional policy.
You’re young and looking for a low coverage amount. No-exam life insurance caps out around $300,000.
You’re a 55-year-old with moderate risk who doesn’t qualify for traditional life insurance.
You’re a 75-year-old senior with health issues looking to use the death benefit to cover burial expenses.
You don’t have time to complete the underwriting process and want to be covered quickly. Skipping the exam shortens the approval process, but at the cost of higher premiums. Traditional life insurance with the medical exam is almost always cheaper if you’re healthy.
For more information about Life Insurance call JCT Insurance Agency at (626)354-2000 or email jctfinancialsvc@gmail.com