Is There a Catch to No-Exam Life Insurance?

Is There a Catch to No-Exam Life Insurance?

Should you try to secure life insurance with no medical exam requirements?

While most adults understand the importance of having life insurance, research shows that almost half of Americans do not carry this coverage.  While there are many excuses that people give for not having coverage, one of the most common is an unwillingness to take a life insurance medical exam.  To address this concern, some insurance providers offer the ability to secure life insurance without having to complete a medical exam.  But are these policies really worth it?  Here’s what you need to know about no-exam life insurance.

  • What is No-Exam Life Insurance?

No-exam life insurance goes by many names.  For instance, insurers may call it simplified-issue, accelerated, or algorithmic insurance.  During the underwriting process for no-exam life insurance, third-party partners will verify your medical and prescription history, financial history, driving history, and so on.  However, what no-exam life insurance providers don’t tell you is that you may still need to complete a medical exam to secure coverage.  If your medical and prescription history raises concerns about your state of health, then the insurance company may make you undergo a health exam anyway.

  • Weighing the Positives and Negatives

Some people prefer no-exam life insurance because the underwriting process is faster, and they are able to secure coverage online.  No-exam life insurance is best suited for people who do not have pre-existing conditions, who are relatively young, and who do not need a lot of life insurance coverage.

However, it’s important to understand that the stricter underwriting criteria makes it harder for many people to qualify for no-exam life insurance.  If you do have health issues or are older than 50, then you are better off securing a traditional life insurance policy.  Additionally, if you are looking to secure over a million dollars of life insurance coverage, then no-exam policies will not offer adequate coverage.  Once again, you will be better off securing a standard life insurance policy.

This is what you need to know about no-exam term life insurance.  Do you have additional questions about your life insurance coverage?  If so, then contact the experts at Steve Wilke Insurance.  Check out our new office today at 310 S Main Street, Suite C, Lombard, IL 60148.