Life Insurance With No Medical Exam
An essential part of financial planning involves having enough life insurance coverage to provide for beneficiaries in the event of a policyholder’s death. Someone with a health condition that could prevent them from taking out a policy may wonder if life insurance with no medical exam is worth pursuing. For most people, the answer is yes. Here we conduct a quick life insurance review of the best no-exam policies.
Life Insurance With No Medical Exam
Ascent’s best life insurance with no medical exam
- Haven Life: Best for low rates
- Ethos: Best for older applicants
- USAA: Best for military families
- Ari: Best for quick coverage
- John Hancock: Best for high coverage amounts
Bottom Line
Haven Life is backed and wholly owned by MassMutual, a company that’s been around for more than 160 years. Although most insurers offer both term and whole life policies, Haven’s only life insurance with no-exam policy is term life. However, the company’s term life insurance policies come with some of the lowest rates in the industry.
For example, here are the rates for four different people, each in excellent health and seeking a 15-year policy with a $500,000 death benefit (the maximum allowed through a Haven no-exam policy).
Why is a medical exam typically needed with a life insurance policy?
A medical exam helps insurers figure out how likely it is they will need to pay a life insurance claim anytime soon. For life insurance companies, it’s all about risks. The higher the statistical risk of a claim, the higher the policyholder’s premium. There’s no crystal ball that can predict the future, but an examination gives the insurer an idea of how healthy (or unhealthy) a person applying for life insurance is.
life insurance policy
What are the pros and cons of a no-exam life insurance policy?
Like other financial products, life insurance with no medical exam has pros and cons. Here are the big ones to be aware of.
Pros
- Someone who might not otherwise qualify can get a policy.
- An applicant might learn the status of their application more quickly than an applicant who gets an exam.
Cons
- Costs more than a traditionally underwritten life insurance policy.
- May not be convertible to another policy type as the policyholder ages.
- Companies typically cap the death benefit, so applicants may not get as much insurance as they want.
- Some policies come with graded death benefits. If the policyholder dies within the first two or three years after the policy is issued, beneficiaries only receive an amount equal to the premiums they paid plus interest.
What does a no medical exam policy typically cost?
The cost of a no medical exam policy varies by:
- The insurance carrier
- The applicant’s age
- The amount of the death benefit
Due to the additional risk taken by an insurance company in writing a no-exam policy, the premiums are always more expensive than they would be for a policy of the same size but medically underwritten. Again, how much higher depends on the type of policy.
For a $500,000 no-exam policy with a 20-year term, the typical cost for a 35-year-old, nonsmoking man ranges from $21 to $60 per month. The same policy with a medical exam and medical underwriting is likely to be $21 per month.
Word of warning: Insurance companies advertise their lowest possible premiums. The example above represents an “ideal” applicant. In other words, few will qualify for the lowest rates. When it comes to no-exam policies, it’s better to look at the rates on the higher end of the scale to get a sense of how much coverage is likely to cost.
Some insurance companies offer term life insurance policies only, while others will only underwrite a no-exam policy if it’s a permanent, whole life policy. Learning the difference between term vs. whole life insurance can help a policy hunter make a better decision.
For a relatively healthy person, giving an insurance company access to medical records and undergoing a life insurance medical exam can lead to less expensive and sometimes even cheap life insurance options. Still, when a person needs insurance coverage but has a medical condition that would make it difficult to pass a medical exam, a no-exam policy offers an alternative that can give them peace of mind.
Here are the rates for four different people with Haven Life, each in excellent health and seeking a 15-year policy with a $500,000 death benefit (the maximum allowed through a Haven no-exam policy).
| GENDER | AGE | MONTHLY PREMIUM |
|---|---|---|
| Male | 35 | $26 |
| Female | 35 | $21 |
| Male | 50 | $100 |
| Female | 50 | $66 |
The following table offers an idea of Ethos rates based on people seeking a 15-year policy with a $500,000 death benefit.
| GENDER | AGE | MONTHLY PREMIUM |
|---|---|---|
| Male | 35 | $23–$40 |
| Female | 35 | $19–$32 |
| Male | 50 | $78–$146 |
| Female | 50 | $57–$105 |
General Term Insurance Plans Without Medical Test in India
Medical Test in India
Some of the term insurance plans that do not require medical examination are listed below:
ICICI Pru ICare Term Plan: The plan includes low premiums and two payment options: Regular Pay and Single Pay. ICICI Pru ICare Term Plan does not require medical checkup.
Met Life Term Insurance Plan: MetLife provides term insurance plans that do not require applicants to undergo a medical exam up to a certain point.
Future Generali Smart Life: This is a standard term insurance plan in which the sum assured is paid to the nominee if the policyholder dies within the policy term. For sum assured up to 30 lakhs, this policy does not require medical checkup till the age of 45 years.
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How to choose term life insurance that does not require medical test?
By doing a basic survey of the many term life insurance plans available in the market, you can choose a term life insurance plan that does not require a medical exam. So take your time and shop around to see which term insurance plans do not require a medical exam.
Things to keep in mind while buying a term plan without taking a medical test
If you buy term insurance without a medical exam, make sure you don’t hide any health problems or bad habits from the insurance company. This information is kept private and will not be shared with anyone. It is important that you tell the insurance company about any illnesses or habits you have. If something bad happens to you in the future due to a hidden disease, your family cannot file a death claim.
Things to Keep in Mind When You Buy Term Insurance without a Medical Test
Before you head out to purchase a term plan sans a medical test, there are certain things that you should consider. Wondering what they are? Let’s take a quick glimpse of a few of the factors.
- Choose the amount of coverage that you need under the term plan only after carefully considering the needs and future financial goals of your family.
- Always make sure to compare different term insurance plans to ensure that you choose one that fits your needs.
- Make it a point to disclose all health conditions at the time of purchase itself to prevent claim rejections in the future.
- If you have any lifestyle habits like smoking or drinking alcohol, the premiums that you would have to pay for your term plan may likely be higher.
How to File a Claim?
All that you need to do to file a term insurance claim is follow the below mentioned steps. The entire process is easy and can be completed within a few minutes.
- The first step is to notify the insurance provider of the policyholder’s death.
- Once you’ve notified the insurer, the next step is to register the claim online.
- Visit your insurance provider’s website and lodge the claim by filling up the claim application form.
- Once you’ve filled the form up, you will be asked to attach certain supporting documents like the death certificate of the policyholder and the policy document, among others.
- Upon attaching all the necessary documents, submit the application form online.
- The claim will be verified by the insurer and upon successful verification, the sum assured will be paid out to you.
Conclusion
Although many life insurers offer term life insurance with no medical exam, there are a few of them who still require you to take a medical test. Therefore, before you go ahead and apply for one, make sure to read through the terms and conditions laid out by the insurers.
Alternatively, you can also visit the Finserv MARKETS website to get to know about all the different kinds of term life insurance without medical exams. You can also compare the various plans to help you determine the one that fits your requirements.
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