A substantial factor insurers use in calculating a life insurance applicant’s premiums is their health and medical history. To gather this information, insurers typically require the applicant to schedule and attend a medical exam. During this exam, the medical professional collects a large amount of the applicant’s medical history and current medical data.
This article will explain what prospective policyholders can expect during a life insurance medical exam. Then, it will discuss a few no-medical-exam life insurance policies for people who want to skip an exam.
What happens during a life insurance medical exam?
Medical exams can last as little as 15 minutes, although they may be longer depending on the tests the examiner needs to run. The applicant may be able to take the exam at home or a paramedical service’s exam center. Regardless, the insurer will cover the cost.
Before the exam, the examiner may interview the applicant via phone to gather some medical history details. Then, on exam day, the examiner will review the medical history to ensure everything’s correct and make any necessary changes. After that, the examiner will gather information like height, weight, blood pressure, and pulse.
The applicant may have blood drawn to measure cholesterol or blood sugar in many cases. Additionally, the applicant may have to provide a urine sample to screen for drugs and nicotine. Applicants of certain ages may have to take additional tests. For instance, an applicant 70 and older may be required to take a cognitive exam.
No-medical exam policies that let applicants skip the exam and get coverage
Some applicants who are older or have health issues may not want to take the medical exam to avoid denial or high premiums. Additionally, many applicants in good health may want to get a policy more quickly and not deal with the medical exam. Fortunately, several policies allow applicants to skip the exam and get the coverage they need right away. Here are a few to consider:
1. Final expense insurance
Final expense insurance is a small whole life insurance policy for older adults in good health created to cover medical care, funeral expenses, and other end-of-life costs. The death benefit is low, but premiums are cheap,lasts for life, and has no medical exam.
These policies also come with a cash value growth component. Part of the policyholder’s premiums is placed in this component, which grows tax-deferred at a fixed rate. Policyholders can borrow or withdraw from the cash value when it grows enough. Plus, they get the entire cash value minus surrender charges if they surrender their policy.
2. Guaranteed issue life insurance
Guaranteed issue life insurance is a type of whole life insurance policy designed to guarantee approval, making it a good option for seniors or applicants with health conditions. Like final expense insurance, these policies have low death benefits and cheap premiums. They also come with cash value that works the same as with final expense insurance.
Although these policies don’t require a medical exam, many have a graded death benefit. For example, if the policyholder passes away during the first three years of the policy, their beneficiaries might not get the death benefit, but they may receive any premiums paid.
The bottom line
The medical exam is a critical piece of getting a traditional life insurance policy. It doesn’t take too long, can be done at home in some cases, and is paid for by the insurer. However, older applicants in good health who want to get a policy more quickly or individuals with health conditions may not want to take the medical exam. In those cases, final expense insurance or guaranteed issue life insurance offer no-exam policy options. Whether applicants want traditional or no-exam life insurance, they should get quotes from multiple insurers to get the most life insurance for their budget.