During the life insurance underwriting process, the insurer requires you to undergo a medical exam to assess the risk of insuring you. If you have an underlying condition such as hypertension, diabetes, or cancer, the insurance provider may deny you coverage due to the high risk, unless your policy is employer-based, according to the U.S. Department of Health and Human Services (HHS). In case they give you coverage, you will most likely pay high premiums on your life insurance policy. Thankfully, you can opt for the no medical exam life insurance plan, which allows you coverage without undergoing medical tests. Here’s a look at some of the main pros and cons of the no medical exam life insurance coverage.
Pros
Depending on your situation, no medical exam life insurance may or may not be suitable for you and your situation. This means that you should evaluate yourself first before choosing this plan. In case you opt for this type of policy, here are the pros you get to enjoy:
- Guaranteed Coverage Irrespective of Your Health Status – It is natural for an insurance company to deny coverage when the risk is too high. For instance, if you have a terminal illness, the insurer considers you a high-risk policyholder, and you may have low chances of getting life insurance coverage. The good news is that the no medical exam life insurance plan guarantees you coverage even if you have a pre-existing condition.
- Quick Approval – The standard life insurance policy underwriting process usually takes at least a month. By comparison, the no medical exam policy underwriting usually takes about a week at most and therefore saves a considerable amount of time.
- Easy and Painless Underwriting – When undergoing a medical exam, the doctor will prick you to draw blood samples for testing. Depending on how many blood samples will be drawn, you may feel a lot of pain. You may also have to give your urine and stool samples, and this is both time-consuming and uncomfortable. Luckily, the no-medical-exam plan saves you from all these, considering you will only have to answer a few questions.
Cons
While this may be a quick fix for your life insurance needs, the no medical exam life insurance plan also comes with some trade-offs, such as the following:
- It Is Costly – To determine the amount of premiums on your life insurance policy, the insurance company assesses your medical history, health status, age, and lifestyle habits. This means that if you are young, healthy, and live a healthy lifestyle, you may be able to save on your life insurance because you are considered to be low risk. However, since the insurance company won’t know your health status in the no medical exam plan, you will have to pay higher premiums to cover the unforeseeable risk.
- Provides Lower Coverage Limits – The Insurance Information Institute (III) recommends choosing a life insurance coverage amount based on the number of dependents you have and any outstanding debts. This could be 6 to 10 times your annual income. While you can choose any coverage amount with the traditional life insurance plan, the no medical exam life insurance policy has limits, usually $100,000, although they vary from one insurer to another. Of late, insurance companies are increasing their limits, and you may get $1 million worth of coverage if you conduct adequate market research.
These are some of the pros and cons of no medical exam life insurance coverage that should help you make the right decision when buying life insurance. To find the right life insurance coverage for your needs, contact the experts at Donald Weiss Insurance Services. Our dedicated team is ready to assist you with all your insurance needs.