No Medical Whole Life Insurance
It is possible to get whole life insurance without having to take a medical exam – this is known as “No Medical” whole life insurance. This form of insurance makes the purchase process faster and easier for the policyholder. No medical whole life insurance is a good option for people at any age who are in generally good health.
One limitation of this type of insurance is that the coverage amounts are often lower than a standard policy that comes with a medical exam, and premium rates are often higher. Insurance companies have to manage their risks when issuing insurance without a medical exam, and they do this by limiting the amount of money paid out in the event of a death, or by charging higher rates for the coverage.
No Medical Whole Life – How Does it Work
Instead of taking a medical exam and going through a weeks-long approval process, people can buy no medical whole life insurance by going through an application process, often online, and answering a few simple questions about their health and medical histories.
It is crucial to answer all of these health questions completely and accurately. The insurance company makes its decision to offer coverage – and decides the premium pricing and coverage level – based on the policyholder’s answers to these health questions.
Life insurance companies have to make sure that they’re not giving coverage to people who are at high risk of death, which is why it’s important to answer the health questions truthfully. If people are not honest about their health – for example, if someone says that he has never had a heart attack, when in fact he’s had two – and then dies soon after getting insurance, that person’s life insurance claim might be denied.
It does your family no favors to be dishonest on a life insurance application, and it is still possible to get life insurance even after having significant health problems. Most insurance companies will offer some level of coverage for people with challenging medical histories, even if the price is higher or if there are certain limitations to the policy.
Who Should Buy No Medical Whole Life Insurance
The best candidates to buy this type of insurance are people who are too busy to get a medical exam or who feel that they are better off not getting a medical exam.
Life insurance is a big commitment, and it can often take a few weeks to go through the process of applying, getting a medical exam, and waiting for the insurance company to make a decision and issue a policy. This lengthy process can be discouraging to some people, especially those who work long hours or who cannot easily get away from work. For these people, it might be better to sign up for a no medical policy, rather than risk going without life insurance.
With no medical life insurance, it’s much faster and easier: just fill out an online form, answer a few questions, and if all goes well you can be quickly approved.
Some people might feel that it is to their advantage not to take a medical exam – that depending on their health history, they might be able to get a better policy or a better rate if they only have to answer health questions, rather than get a blood test and medical screening.
People who are generally in good health should consider getting life insurance that requires a medical exam, as they can often get a better rate on premiums or more generous coverage. With no medical life insurance, policyholders are effectively paying extra for convenience.
Drawbacks of No Medical Whole Life Insurance
In general, this type of insurance is more costly per $1,000 of death benefit than insurance that requires a medical exam. The reason is that insurance companies tend to view “no medical” policyholders as being a higher risk.
Since the insurance company’s money is at risk whenever a policyholder dies, and the “no medical” life insurance policyholders got their coverage by simply answering a questionnaire, the insurance company assigns higher premium prices to these policies to compensate for the risk.
Another drawback is that the amount of death benefit coverage is usually lower for no medical whole life than it is for policies that require a medical exam. No medical policies often have their death benefits capped at a certain level – for example, $50,000 – which is lower than the ones available for regular policies.
For people who are in good health, it is often to their advantage to take a medical exam and get a standard insurance policy, which will usually offer lower premium prices and higher death benefits. No medical whole life is a good option for those seeking convenience or who might not be in optimum health, and who are willing to pay the difference.
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