Life insurance is an important piece of most people’s overall financial plan. Having life insurance can help you to ensure that those whom you love and care about will be able to carry on financially – even in the event of the unexpected.
Many people feel that the only people who need life insurance coverage are those who have children and / or other dependents who rely on them for their financial support – and, in most instances, this primarily includes those who are young, as well as those who may be in their peak earning years.
This, however, is not necessarily the case.
There are many reasons, for instance, why those who are age 50 or over may need life insurance coverage.
Yet, as a person gets older, it can be more likely that they will contract an adverse health condition.
This is why considering life insurance after age 50 with no medical exam could provide the answer to getting the coverage that you need, even if you aren’t in prime health.
Types of Life Insurance Available to People Over Age 50
If you are over age 50, there are still many life insurance options that can be open to you. These can include term and permanent coverage.
With term life insurance, you will have death benefit coverage for a certain amount of time, such as 10 years, 20 years, 25 years, or possibly even for 30 years.
With a level term life insurance policy, the amount of the death benefit coverage, as well as the amount of the premium, will usually remain fixed and guaranteed.
On the other hand, permanent life insurance includes a death benefit, as well as a cash value component.
In this case, depending on the type of permanent life insurance that you choose, you could have your premium and your death benefit amount locked in for the remainder of your lifetime (provided that the premium is regularly paid).
In most instances, you will be required to complete an application for coverage in order to qualify for traditional life insurance coverage. T
his type of coverage will also usually require you to undergo a medical examination.
If you do choose to apply for coverage where a medical exam is required here is what to expect.
During this exam, you will meet with a paramedical professional who will ask you some additional health-related questions. This is usually done at your home or place of business.
He or she will also take a heart rate and a blood pressure reading, as well as a blood and a urine sample.
With some applicants for life insurance coverage, the insurance company’s underwriters will also request your medical records for review.
These may come from your primary care doctor, any medical specialist that you see – or all of these.
Factors to Consider with a No Medical Exam Life Insurance Policy
When purchasing a no medical exam life insurance policy, there are several key factors that are important to consider.
For example, because many people who purchase no medical exam life insurance are over age 50, it is likely that these applicants are riskier to a life insurance company – and because of that, the premium that is charged for no medical exam coverage is typically more than that of a comparable medically underwritten plan.
However, there are a few advantages to not having to complete a medical exam as a part of the application process.
The first is the convenience factor.
You have to make the time to complete the exam.
Also, you will need to fast for typically 8 hours. For people leading busy lives it becomes one more thing that gets put on the to do list.
The next is that it typically takes quite bit longer to go through the application process when applying for a policy that requires a medical exam.
Therefore, you need to be patient when going this route because it does take quite a bit of time.
On average it will take about 4 to 6 weeks.
The reason it takes quite a while is because often times if a company want to you to complete a medical exam, they will also want to obtain your medical records as well as a part of the underwriting process.
The third reason you may want to go with a no medical exam option is if you haven’t been to your doctor or had any labs done in the last couple of years.
Often times people find out that maybe their cholesterol was higher than they had realized for example.
As a result they may still be able to still get approved, but at rate that is quite a bit higher than they had anticipated.
Obtaining no medical exam life insurance can usually be done much faster than obtaining life insurance that does require a medical exam.
Keep this in mind when comparing no exam life insurance quotes with life insurance options where a physical is required.
There are several companies that are embracing an accelerated process where often times you can be approved in just a matter of days.
Sometimes we’ve even seen approvals happen in a matters of hours.
There are a couple of disadvantages though to going with a no exam option.
First, the cost is typically going to be higher and second the coverage will be limited with most companies to between $250,000 and $500,000.
Here’s an example of 3 different options a 50 year old healthy non smoking female would have.
50 Year Old Healthy Female - $250,000 - 10 year term - Sample Rates
|Medical Exam Required?||Medical Records Needed?||Time to Process Application||Monthly Premium|
|Option #1||Yes||Usually||Approximately 4-6 weeks||$25|
|Option #2||No||Usually||Approximately 3-5 weeks||$28|
|Option #3||No||No||A few days, possibly a few hours||$37|
For all of these reasons, it is important that you have a good understanding of how these no exam policies work, as well as the pros and cons of going with an exam or going without an exam.
There are some people that think that because a company doesn’t require a medical exam as a part of the underwriting process that they will be able to get approved easier if they have a know preexisting condition.
However, this is not the case.
If you apply for a no exam policy the insurance company is still going to do thoroughly evaluate your risk. You are still going to have to answer all the health questions on the application.
Not only that but the insurance company is going to run a prescription drug check and check, MIB file, and depending the insurance company they may also want to obtain your medical records.
As mentioned above a no exam policy should be considered primarily because of the convenience factor, the speed of completing the underwriting process faster, and to avoid any surprises from your labs from your medical exam particularly if you haven’t been to the doctor in a while.
In addition, having no medical exam requirements to review by the life insurance underwriters can allow a no medical exam policy to be approved and issued more quickly than a traditionally underwritten policy.
In some instances, these plans could be issued within just days of applying for the coverage – or possibly even much sooner.
What If You Don’t Qualify for Life Insurance Coverage?
If you are unable to qualify for traditional coverage and are declined for coverage, it does not mean that you have to go without life insurance altogether.
In this case, you could apply for a guaranteed issue life insurance policy.
For instance, if you are currently battling cancer a guaranteed insurance coverage would be your best option option.
As its name suggests, guarantee issue life insurance coverage does not require an individual to undergo a medical examination in order to qualify for the policy.
And, in most cases, this type of life insurance coverage won’t even require you to answer any medical related questions on the application at all.
Because there is no medical exam, and no health questions asked, this is a way to provide someone who has adverse health to still qualify for a policy – and in turn, to have the peace of mind that you want in case of the unthinkable.
Of course there are drawbacks to this type of policy.
First is that you’re limited in how much coverage you are able to buy. Typically, the most an insurance company will offer is about $25,000.
The other disadvantage to these plans is that you aren’t fully covered for the first 2 years.
If you were to pass away within the first 2 years full death benefit would not be paid. However, the premiums paid plus some interest would be paid to the beneficiaries.
Where to Get the Best Rates on No Medical Exam Life Insurance If You Are 50 or Over
If you are shopping for the best premium rates on no medical exam life insurance coverage, I can help.
I work with many of the best life insurance carriers in the industry today, and can provide you with all of the details that you need.
In fact, I will let you know your options both with taking an exam and without similar to the options show in the chart above for the healthy 50 year female looking for a $250,000 10 year term policy.
To proceed, just take a brief moment to fill out the quote form on the side of this page.
If you have any additional questions about purchasing a no medical exam policy for those who are over 50, please feel free to give me a call. I’m here to help.