Life insurance is an important piece of most people’s overall financial plan. Having life insurance can help you 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. This 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.
The process of getting life insurance can be lengthy, but a no medical exam policy finds a way of shortening it by omitting some of the steps. Simplified issue coverage tries to offer a policy that will help in catering for funeral costs, medical bills and debts. It can also go as far as to help in getting approval for a loan.
A simplified issue life insurance policy presents you a health questionnaire instead of performing a medical exam. The questions are simple and straight to the point which requires a yes or no.
Within the confines of the questionnaire most insurers will ask for details such as your alcohol and drug use. Height and weight too may be asked by some companies.
Simplified issue is not a complicated life insurance product. So many life insurance companies take part in providing the policy to individuals nation wide.
Coverage always differs from one insurer to the other. The amount is lower compared to the regular life policy. For this policy the companies usually pay out less amounts because the risk at hand is very high.The range of this coverage might be from 5,000 dollars to 500,000 dollars, and only in some cases can you get more.
The premiums for the simplified issue are automatically costly than for the traditional life insurance. The insurer has a limited information about the health of the insured, therefore this turns out to be riskier. The high premium is to cater for high risk.
In addition the amount payable for premium is affected by the age of the insured. If you are younger it might cost you less, when you are deemed older when getting the policy, you are going to have to pay a higher premium.
The process of getting simplified issue life coverage
With traditional life insurance coverage, the process always demands for medical exam, which gives a well detailed idea of your health status. A physician will take vital information, like height, blood pressure, urine sample and weight. Questions about your family and personal medical history are also asked.
For the simplified issue life insurance, because no exams are done, the insurers use different methods to verify you are qualified for the policy.
After filling and returning the health questionnaire they take their time to cross check your answers with the Medical Information Bureau and pull information from the DMV and pharmacy records. After that, they will pull info from the national statistics available they will try to estimate how long you will live in reference to your sex and age.
Though the information may not be that detailed, the insurers will use it to decide how much of a risk you are to be placed under insurance.
The questionnaire that is provided is easy making the process shorter compared to the lengthy medical examination. The questionnaire can also be easily filled online with most companies.
This comes about by the fact that no examiner will come over to your place to take a medical exam.
Simplified issue insurance is available for anyone starting from the age of 18 and above. The price for the coverage stats from as low as 5000 dollars. All this depends solely on the provider.
Price of no-exam policies
Between the two no exam policies, simplified issue life insurance is very cheap compared to the guaranteed issue life insurance.
Full benefit payment
In the case of death, the insured get a full benefit paid out.
Ease in pay
Payment of monthly, semi annual or yearly premiums is easy through deductions made by insurers from checking accounts or credit cards.
While no exam can be a good option, it can have its disadvantages.
The premiums are costly compared to traditional policies. This is brought about by the fact that the insurer is taking on great risk by not going deep into your medical information.
The coverage amount will usually be capped at a certain level due to increase risk of not running a medical exam.
Regardless of your health condition you will be covered and you can not be denied a policy. For this cover the death benefits are low and the premiums are very expensive.
The basic benefits for this product are that no medical examination is undertaken, no question regarding your health is asked and you are not requried to be of perfect health to get policy.
Everyone has his or her own reasons as to why they choose to get guaranteed issue life insurance policy, regardless of this, it is always great to at least seek out the best quote from a few reputable life insurance companies before making a decision.
These are some of the insurance companies that offer a great deal on guaranteed issue life insurance.
They work greatly with people with illnesses that are long term. They will also listen to your needs and ensure you get premiums that are reasonable.
Its life insurance policies have accelerated benefit riders that ensures policyholders pay for long term care. It can also be viewed as a retirement account.
The company serves mainly the middle class Americans and ensures that the families interests are safeguarded. Their policies and services are easy to understand and straightforward. The age for the individuals eligible for their policy is 50 to 80 years.
A graded death benefit is offered for the first two years. The benefit works in such a way if the applicant dies from any other reason rather than an accident the premium will be paid by the insurer.
The age for an individual seeking a guaranteed issue insurance is between 50 to 80 years. Riders for chronic illness and terminal illness are also included in the policy. It also offers graded death benefit with a ten percent interest.
The truth is there are a few companies out there that can get you covered. Speak with an agent today to learn your options, it won’t cost you a thing to get more information.
Something to know about graded benefit
Apart from the charging of higher premiums, the greatest disadvantage of a guaranteed issue life insurance is that the beneficiaries of the insured will not get to enjoy a full death benefit until the policy has been in place for a particular duration. In most cases it is from one to two years, this varies from one insurer to the other.
Let’s say you pass away within the first few years of the coverage, a great number of insurance companies will offer a refund on the premium paid to the beneficiaries instead of the precise death benefit. This act is carried out so as to avoid immediate large payouts for persons will critical ailments, who wish to get a policy at a later time so as to be able to give their family a privilege of receiving a death benefit.
The process of getting a guaranteed issue life insurance is simple. The reason is because no examinations are undertaken. What you might want to consider is the best company to choose for your policy. Here is a guide for doing so.
Start off by comparing the rates from different companies that offer the policy. Take into consideration the face value amount as marched with the age. For most companies they offer a death benefit of 2500 dollars for applicants at the age of 50.
Ensure that the company that you want to join is financially stable and its capable to pay claims. Check for its reputation when it comes to paying the claims.
Also take your time to understand the graded benefit on your policy. Take this benefit as a great factor in selecting a policy.
Always try to use an insurance broker before making your final decision. The broker will help you get a great plan and also give you better ideas on what to look for. New products do come up because plans always change, the broker will really help in keeping you updated and you will benefit from his vast understanding of the subject.
Finally, if you are taking guaranteed issue life insurance so as to cater for the burial fee, then you can opt not to take the insurance by being “self insured”. By putting aside some of your savings(assuming you got it) to cater for your burial fee.
No exam life insurance has plenty of advnatages that make it an appealing option no matter your age.
No health examination is conducted nor are medical questions presented to the applicant. Due to this, the process is short and timely. In addition to that, if you keep paying for policy every month without seizing , it can never expire.
It is a simple type of policy to get compared to other policies. Its good for people who would be classified as ones who can’t be insured and won’t be able to get a term life insurance because of their ailment. No condition is considered non insurable. Anyone who applies for this policy will eventually get covered.
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.
Wrapping it up…
As a reminder, Guaranteed issue life insurance policy should never be taken to be the first choice as you decide to get a life coverage. The infamous graded benefit that is put in place by the insurance companies is not a great provision, as it can really put a burden on you loved ones. The guaranteed issue life insurance is only to be taken up as the last option after long and witty exploration of available suggestions.
Also, don’t assume that your health condition is impossible to insure. Being denied by one company doesn’t mean they all will do the same. Underwriting differs from one company to another.
Finally, do not jump into conclusion that the health situation that you are in is far from the protective hands of an insurance company. Getting turned down by one insurance provider is not the end, because they are all not the same. There is always something for you out there which is why its improtant to work with a pro. Give us a call today!