Life insurance can be a tedious process when done the old fashioned way. A traditional term life insurance policy can take up to 8 weeks to obtain post application. That’s a fairly long time and most of the time, the best case scenario. Because of this no exam life insurance has been growing tremendously in popularity.
Many of the best life insurance companies are starting to roll out their own version of no medical exam life insurance products and this has made convenience seeking customers very happy. Of course we recommend that you look over all your options first, we offer several company reviews, one being Globe Life Insurance, that helps you better understand the pros and cons of each company and what they have to offer. No exam life insurance is a product that does exactly what its name implies: provides life insurance without having to take the medical exam. While you may find may “Pros and Cons” lists out there for no exam coverage, let’s take this opportunity to discuss the top 5 reasons to buy no exam life insurance.
In summary, here are the top 5 reasons at a glance.
1. You need life insurance fast
2. You seek convenience
3. You haven’t been to the doctor in a long time.
4. You have a phobia
5. You’re young, healthy, and don’t need that much coverage.
Those are the top 5 in a nutshell, if you want to compare quotes you’re at the right place! Otherwise let’s dive into reasons to get a no exam life insurance policy.
Reason #1: You Need Coverage Fast
If the traditional 6 to 8-week approval process isn’t something you fancy, then you are better off going with a no exam policy. Often times you may be required to get coverage in place in less than a months’ time. Whether it be coverage for a loan approval or court ordered settlement, you will be asked for proof of life insurance coverage. If you don’t already have something in place, then a no medical exam policy is the best way to go. Depending on the company, you can get approved for coverage in as little as minutes to a couple days, with the longest approval times ranging at about a month.
Companies like Sagicor can provide same day approvals with the longest wait time being 72 hours. The longest approval time comes from companies like American National and Assurity with UP TO 30-day underwriting. Other companies like Fidelity boast guaranteed 48-hour approval and new products like InsQuik by SBLI can provide coverage in as little as 10 minutes. Here is a bulleted breakdown of some no exam carriers and their underwriting lengths.
1. InsQuik – Instant to 10 minutes
2. Fidelity – 48 hours
3. Sagcior – Instant to 72 hour
4. American National – 2 to 4 weeks
5. Assurity – Up to 30 days
Reason #2: You Seek Convenience
Many of our clients opt to pay a little more for no exam coverage to simply avoid the hassle of the underwriting process. With a traditional policy you will be required have a nurse come to your home and perform a typical physical along with a blood and urine sample. The nurse will check your height, weight, blood pressure, and ask you a few medical questions. You will have to fast prior to the exam and make sure to not eat anything to elevate your levels prior to it. The whole process takes between 30 to 45 minutes and includes needles(ouch).
Most people wouldn’t want to deal with that if they didn’t have to and with no exam life insurance, you don’t. You don’t have to clean up your diet for a few days or find an ideal time to schedule it. The process is fairly simply, you apply for coverage and wait for underwriters to come back with a decision. For the faster companies this usually just involves a quick computer check into your medical history. If all looks good, you’re approved!
Reason #3: You Haven’t Been to the Doctor in a While
This may sound strange but if it’s been some time since your last doctors visit then it may be a better idea to head the no exam life insurance route first. Even if your last doctors visit provided you with a clean bill of health you can’t be sure it stayed that way. By avoiding the medical exam, you avoid the potential of getting rated up for something you did not you know you had. If you secure a coverage at a good rate with a no exam policy first, you can pursue the traditional coverage after if you still need more, or cheaper coverage.
It’s happened often to our clients that they had an amazing last doctors visit but their health took a slight turn since and caused them to get put into a lesser health class, which is always more expensive. For example, life insurance for smokers is more expensive than non-smokers. This is a scenario where a no exam policy can be less expensive, if pursued first. Something as simple as a high blood pressure reading can cause your rate to increase. So if you’re just not sure, opt to skip the exam initially.
Reason #4: You Have a Phobia
If you don’t have any of the phobia’s associated with a medical exam, then you may scoff at this. However, if you do, then this is a very real problem and we have come across many clients who have had this issue. So what kind of phobias? Here are a few that are the most common.
White Coat Syndrome – many people are inflicted with this and it’s the simple result of increased anxiety in the presence of doctors or nurses. This can cause your blood pressure level to skyrocket to the point of hypertension even if you don’t have it. This can result as a problem on your life insurance application if not documented in the past.
Hemophobia – this is, in lament terms, the fear of blood. Many people that have Hemophobia can experience panic attacks when seeing blood, sometimes to the point of feinting.
Trypanophobia – if yo’are afraid of needles, you’re not the only one. Close to 20% of people have some level of Trypanophobia which prevents them from getting their routine tests done. Some people experience more severe levels of anxiety than others, but a fear of needles is a very common reason most of our clients seek no medical exam life insurance coverage. If you have any of these, or other phobias associated with medical exams, then it is yet another good reason to consider a life insurance policy that allows you to skip seeing the nurse.
Reason #5: You’re Young, Healthy, and Don’t Need That Much Coverage
A lot of times no exam life insurance can cost a little more than traditional life insurance coverage. The older you are in age the more of difference in cost you see. This is due the fact that the life insurance company is taking on a bigger risk by providing you coverage with no exam at an older age. However, when you are young and healthy, the difference in cost for a traditional vs no exam coverage can be minimal. As minimal as $1 to $2 a month. No exam becomes a good option especially if you need less than $400,000 in coverage because this opens up the pool of no exam companies that are available to you. The cost for coverage will be just about the same, except you get the benefit of fast approval and no needles. If you have questions or want to learn more about term life insurance for seniors, we can certainly assist you in this process. We are happy to help you!
A Few Things to Keep in Mind
While no exam life insurance policies bring tremendous value, they do have some pitfalls that I’ve touched on briefly. Let’s break them down a little more specifically.
1. The coverage is capped – most no exam companies cap the coverage. It’s hard to get anything over a million in life insurance with no exam unless you stack a couple policies from different carriers.
2. It can cost more - this isn’t always the case but for the most part a no exam policy will cost you more. Unless you’re young or haven’t been to your physician in a long time, then traditional coverage may provide more savings
3. There is still underwriting – you do get to skip the medical exam but the life insurance companies will still look into your records in the Medical Information Bureau(MIB) to verify that what you’ve said on the application is true. They will also look into your past history to determine what rate you qualify for.
Why? This is all for the simple reasons that you’re considered a higher risk when you forego the medical exam. The life insurance companies don’t have your medical exam results to go off of so they cover all their bases with these little tricks. However, with advances in technology, we can expect more life insurance companies to head the no exam route and make life insurance buying more efficient down the line.
The good news is you’re at the right place. RootFin.com is an independent life insurance agency that works with all of the no medical exam life insurance companies on the market. We shop around for you to get you the best rate and have a team of experts to recommend the best options for you. Contact us today if you have any questions!