The Intricacies of the No-Exam Life Insurance Policy
Few people want to go through medical examination. For this reason, the No-exam life insurance is quite popular with many insurance clients. If you are squeamish about needles and getting poked and prodded, you can still purchase some much-needed insurance without the inconvenience.
That said, No-Exam insurance policies are also available for those who need the insurance fast. Medical examinations and the waiting period for the results can take a lot of time. These policies are also available for those who do not require a large coverage.
What about Limitations?
You may erroneously think that No-Exam policies offer very limited coverage since they typically offer smaller covers. This is not necessarily true. The insurance companies that offer this coverage take these into consideration:
- Your present age
- Your health history
- Your income
You can therefore be considered for a larger than usual amount if you meet certain specifications. The following is a list of the requirements for a No-Exam insurance cover:
- The Price
The price of this cover varies. You might find that the premium you pay goes up to 40%. This is the worst case scenario though. Most of the time, the increments will be below 40%. The price may vary with a few dollars added every month.
- Types of No-Exam Insurance
There are at least six types of this type of coverage. Opting out of a medical exam therefore does not leave you without options. When you talk to an agent about the covers available, ask about the No-Exam coverage policies. Once you understand what all the covers involve, you will be able to make a choice.
Also, ensure that you do not get the ‘accidental death’ option. A policy such as this one will only pay if your death is ruled as an accident.
- A No-Exam Life Insurance Comes with Guaranteed Coverage
This is the biggest advantage you have with this type of policy; coverage is guaranteed. When you opt for a medical exam, you run the risk of rejection. The company may consider you too huge a risk depending on what the doctors find. It will not be pleasant having considered yourself health personified, only to be told that you are too sick to be considered for insurance coverage!
However, when you go for the No-Exam option, no such surprises await you.
- Insurance Companies Will Still Require to Check Your Medical History
Opting out of a medical exam does not mean your medical history remains a secret. Your company of choice will still require to check your history. You will also undergo a phone interview with an underwriter to ascertain your insurability once you have completed a written medical questionnaire. The company takes on a huge risk covering someone who opts out of a medical examination, so they need to cover all bases.
When filling in your medical questionnaire, ensure that the information you give is truthful.
- Approval is Fast
When you take the medical examination option, there is a waiting period as you have to wait for the medical results to be availed. The insurance company then has to peruse the results before they decide if you are worth the risk or not. With the No-Exam, approval can be as fast as fifteen minutes. In fact, you can be approved immediately.
Approval does depend on the type of policy and how large it is. However, if your health is not in question, then it should take the least time possible to give your application the green light.
- A Pre-Existing Condition can be Overlooked
Sometimes a prospective client is reluctant to admit to a pre-existing condition because they think they will be rejected. Surprisingly, not all pre-existing conditions warrant a decline. The company grants you a waiting period to see if the condition is under control. The following conditions may not cause your application to be declined:
- Type 2 diabetes: You will be given a one-year waiting period from when you were diagnosed.
- Internal cancer: You get a five-year waiting period from diagnosis.
- External cancer: This one depends on the type, and how severe it is. You will get a waiting period anywhere from zero to three years.
- Heart disease: If it requires specialized treatment, you will get a five-year waiting period from the end of treatment.
Guaranteed Issue Life Insurance
No health questions asked here, so anyone qualifies for a cover. The downside is that it is quite pricey and has comparatively smaller death benefits. The upside is, you can qualify even if you have any of the following conditions:
- Alzheimer’s disease
- Hodgkin’s disease
- Connective tissue disorder
- Chronic hepatitis B, C and D
- ALS (Amyotrophic Lateral Disease)
- Parkinson's disease
- Heart, respiratory and brain conditions
- Systematic lupus
You cannot apply for life insurance on behalf of anyone else but yourself. Anyone that is over eighteen years of age is eligible for life insurance, but they must fill in the insurance application themselves. This includes interviews conducted verbally. You can receive the quotations for the party to be insured, but the company will want to engage the person one on one.
What are the advantages of going for the No-Exam life insurance option?
- You can skip having your blood drawn.
- The approval time is faster.
- It is more convenient as you will not need to go searching for a doctor and go through the time-consuming process.
- There is less scrutiny and no unpleasant surprises that you are not prepped up for.
- The amount of coverage may be too small.
- There is a possible waiting period before you can be considered for full coverage.
- The policy is more expensive than the medical options.
- A riskier payout in the first two years of the
Getting the relevant details is easy as all you have to do is search online for a company like Blue Cross Moncton or other companies so that you can be well informed about the options you have, even as you sit down with your agent for a discussion.