Interested in purchasing a life insurance policy, but don’t want to have to take a medical exam or answer any medical questions?
If so, you’re in luck, because there have never been more options out there for someone who wants to buy a life insurance policy with no medical questions asked!
But just because…
These types of life insurance policies exist, doesn’t mean that you should IMMEDIATELY run out and buy one.
After all, when you sit down and think about it, it makes “sense” that any of the top no exam life insurance companies would want to ask an insurance applicant a bunch of questions about their health before offering them a life insurance policy.
We should “assume” that if you’re applying for a life insurance policy that DOESN’T require you to take a medical exam or answer any medical questions, there’s probably going to be a “catch” somewhere.
This is why we wanted to take a moment and answer some of the most common questions we get from folks who are considering purchasing a No Medical Question Life Insurance Policy.
No Medical Question Life Insurance Policy
Questions which will be addressed within this article will include:
- What are No Medical Question Life Insurance Policies, and how do they work?
- Why wouldn’t everyone want to buy a No Medical Question Life Insurance Policy?
- When are No Medical Question Life Insurance Policies a good choice for someone?
- What can I do to help improve my chances of qualifying for the “best” life insurance policy?
So, let’s dive right in!
What are No Medical Question Life Insurance Policies
(and how do they work?)
No Medical Question Life Insurance Policies are exactly that!
They are small whole life insurance policies that don’t require someone to answer any health-related medical questions or take a medical exam for you to qualify for them.
This is why they’ll often be referred to as Guaranteed Issue Life Insurance Policies because as long as you meet their minimum requirements (which have nothing to do with one’s health), you will be approved!
Which means that…
If you have been denied a traditional life insurance policy, whether it be because some kind of health issue (a pre-existing medical condition) or because of some kind of “lifestyle” choice you have made, you should still be able to qualify for a No Medical Question Life Insurance policy or Guaranteed Issue Life Insurance Policy, assuming you live in a state where they are offered and you meet the minimum age requirements.
Which should sound…
Pretty great to those who have already been previously denied coverage.
However, it’s important to understand that these “types” of life insurance policies will have their unique disadvantages, which may make you want to reconsider purchasing a Guaranteed Issue Life Insurance Policy if other options are available to you.
Why wouldn’t everyone want to buy a No Medical Question Life Insurance Policy?
Now up until this point of our article, all we’ve talked about is how easy it can be to qualify for a No Medical Question Life Insurance policy and how most people will be eligible for them provided they meet the minimum age requirements.
We haven’t yet described how these “types” of life insurance policies aren’t going to be a “perfect” fit for everyone. In fact, sometimes these “types” of policies aren’t going to be a good fit at all!
For this reason, we want to turn our attention to what we feel are the 4 Biggest Disadvantages of purchasing a No Medical Question Life Insurance policy.
The first major disadvantage of most No Medical Question Life Insurance Policies or Guaranteed Issue Life Insurance Policies is that they will only provide a limited amount of life insurance coverage.
In fact, most No Medical Question Life Insurance policies will only provide up to around $25,000 in coverage.
This is why these “types” of life insurance policies are commonly referred to as Burial Life Insurance Policies and/or Final Expense Insurance Policies.
So, if you’re looking for a life insurance policy that’s going to help you:
- Replace lost income in the event of your death,
- Cover the cost of a mortgage,
- Insure a child’s education,
- Or provide more financial protection than 25,000 dollars in coverage can provide,
chances are a No Medical Question Life Insurance Policy isn’t going to be a good fit for you.
It is possible to purchase several different No Medical Question Life Insurance Policies from a variety of different life insurance companies.
However, doing so could become a bit complicated and expensive, which brings us to the next problem that we have with these “types” of life insurance policies.
The second major problem that we have with No Medical Question Life Insurance Policies is that they can tend to be a bit “pricey”, given the amount of coverage that you’re receiving.
Now, this isn’t to say that a No Medical Question Life Insurance Policy can’t be affordable, because the truth is, they often can be.
All we’re saying is that in some cases, simply answering a few questions or taking a medical exam can often allow someone to receive much more life insurance coverage right around the same price.
The third disadvantage that we’ll commonly encounter when dealing with these “types” of life insurance policies is that most carriers that offer them will only offer them to individuals over between the ages of 50 and 85.
This means that if you’re younger than 50 or older than 85 you may find it difficult to find an insurance company willing to approve you.
Here at IBUSA, we work with a few companies that are willing to insure individuals younger than 50.
Unfortunately, these carriers are not offered in all 50 states so some folks may not be able to qualify for these policies simply due to their current geographical location.
The last disadvantage of a No Medical Question Life Insurance Policy or Guaranteed Issue Life Insurance Policy is the fact that these “types” of life insurance policies will contain a provision within the policy which is designed to prevent people from purchasing a No Medical Question Life Insurance Policy immediately before they believe they are going to die from some type of “natural cause”.
Graded Death Benefit Defined:
Graded Death Benefits are “clauses” written into most (if not all) Guaranteed Issue Life Insurance Policies wouldn’t begin to cover an individual from “natural causes” of death until a certain waiting period has elapsed.
This “waiting period” will usually last 2 to 3 years and is designed to make sure that someone who knows that they are very close to death from being able to purchase these “types” of life insurance policies.
This may seem incredibly unfair; it’s important to remember that a No Medical Question Life Insurance Policy isn’t going to require you to take a medical exam or answer any health-related questions.
So, at the end of the day, a graded death benefit really is the only thing that allows insurance companies to be able to offer one of these “types” of life insurance policies.
The good news is…
That while you may have to wait for 2 to 3 years for a Guaranteed Issue Life Insurance policy to provide you true life insurance protection, these “types” of life insurance policies will provide immediate coverage for any “accidental causes” of death.
When are No Medical Question Life Insurance Policies a good choice for someone?
OK, now that we’ve talked everyone out of ever wanting to purchase a No Medical Question Life Insurance policy, let’s now take a moment and describe a few situations were buying one of these “types” of life insurance policies might be a good idea.
You can’t qualify for any other “type” of life insurance policy.
Folks in this situation may have already been DENIED when applying for a traditional or no medical exam life insurance policy, or several different life insurance agents have simply told them that they won’t be able to qualify for a insurance policy that will use one’s health as a determinant for who will and won’t be able to qualify.
In other words, if a No Medical Question Life Insurance Policy is all that you can qualify for, sometimes “something” is better than “nothing”.
Individuals looking to purchase a small life insurance policy on another person such as a parent or sibling may find purchasing a No Medical Question Life Insurance policy their best option is given the ease of applying, getting approved.
The reason for this is because sometimes the individual who is being “insured” is “OK” with the whole process of allowing someone else to purchase a life insurance policy on them provided that it’s not too much of an “inconvenience” to them personally.
Sometimes a small life insurance policy that is guaranteed to last one’s entire lifetime that won’t change in price or coverage amount is just what someone is looking for. And sure, they would prefer the policy to cover “natural causes” of death right away, but since they aren’t sick and don’t anticipate dying from natural causes in the next two or three years, this isn’t a problem for them.
Three genuine situations where a No Medical Question Life Insurance Policy could be a perfect fit for someone which brings us to our next topic, which is…
What can I do to help improve my chances at qualifying for the “best” life insurance policy for me?
In our experiences here at IBUSA, we’ve found that usually, the “best” approach in helping someone find the “best” life insurance policy for them is to first:
Fully understand what an individual is trying to achieve by purchasing their life insurance policy.
Are you looking to:
- Cover the cost of a mortgage?
- Replace lost wages?
- Protect a child or spouse?
- Or just cover one’s final expenses?
Our goal is to provide you with plenty of options to choose from so that you’re not limited to just one or two different options.
This is why…
We here at IBUSA choose to work with so many different life insurance companies so that when it comes time to help you decide “which” life insurance company is going to be the best for you, we don’t have to apply a…
“One Size Fits All Approach”
Instead, we can make dozens of different life insurance companies compete for your business.
So what are you waiting for? Give us a call today and experience the IBUSA difference.