Term Life No Exam – The Options

Term Life No Exam insurance policy with no medical exam requirement usually guarantees cover. There could be some circumstances, based on the health and lifestyle habits of the applicant, which makes the insurer reject the application. There are two ways of buying life insurance without the need to medical checkup. The two options are:

  • Simplified term life insurance
  • Group term life insurance

Here is an elucidation of these two kinds of policies.

Simplified Term Life Insurance No Exam

A simplified insurance is one of the easiest policies to buy because it does not require medical examination and very few questions are asked. This is a kind of basic life cover meant to assure that people with preexisting conditions, especially children, can have a decent cover.

In term of costs, these policies are costlier than term policies that require medical examination. However, the costs are lower for children’s life cover policies.

In terms of coverage, simplified insurance provides an upper coverage limit of $300,000 and you can buy coverage for as low as $5000 as well.

The main advantage of these Term Life no exam policies is that they can be easily accessed by everybody, including those who are heavy smokers, obese and suffer from hepatitis. Some of the providers offer these policies over phone. So, the entire process is actually very simplified and very quick. You need to furnish only basic information about your health such as major diseases, surgeries and hospital stays. Details about family history are usually not required.

Group Term Life Insurance

Group insurance is purchased by a group of people, usually offered by employers. These group term life no exam policies do not require medical examination in most of the cases. In employer sponsored policies, the employer pays the entire amount or a part of the amount. You are required to shell out the remaining part. Group policies are cheaper than individual policies that require medical examination, although they are more expensive than those offered with medical tests. Under employer’s policy, you could receive tax deductions on premiums for coverage of up to $50,000.

If you have another life cover or sufficient assets so that your family does not have to depend on the group coverage amount in case you happen to be victimized by a tragedy, group insurance is a great option. However, if your family does not have another source of income, group insurance is insufficient.

Also, you cannot depend entirely on this policy because it covers you only as long as you are employed in that particular company. If you change jobs, you remain without cover until the new employer can cover you. The coverage amount is low as well.

Group policies can also be purchased by a group of friends or communities. In such cases, you can decide on an amount and share it amongst yourselves. This way, the coverage and benefits you receive are higher.

Although these policies do not require medical test, you will be required to answer questions and furnish basic information.

Benefits of Term Life No Exam Coverage

The main benefit of the policy is that it is very quick. You can have a life cover within a few days. Secondly, these policies are great for people who do not qualify under policies that need medical exam. People above 55 years of age are also offered a guaranteed policy with no medical test.

The drawback is its high costs. Moreover, premiums could increase as you age.

Before you decide on a term life policy with no exam, consider the type that is suitable for you so that you can receive high benefits.