If you’ve decided to purchase no exam life insurance, there are two main questions that you need to ask yourself:
- How much coverage do I need?
- How long do I need the policy to last?
These questions are life insurance 101, and if you don’t know the answers, you may end up buying a policy that doesn’t suit your needs.
Rules of Thumb for Coverage and Duration
Now that you know what you should be asking, how can you find the answers? How are you supposed to know exactly how much coverage you need and how long you need it for?
No exam life insurance is the same as standard life insurance. The main difference is that it is life insurance without a medical exam. However, since every other aspect is the same, you’ll want to follow the same guidelines that apply to standard life insurance.
Many people often consider buying no exam life insurance with coverage that is:
- 10 times their income (which may generate enough interest to replace the income)
- 10 times their income + $100,000 per child
- 10 times their living expenses + any outstanding debts
When considering how long to get no exam life insurance for, many people often consider various milestones:
- When they reach retirement age
- When their children have graduated from college
- When their savings reaches a specific amount
- When their mortgage is paid off
Depending on when you purchase the policy and what stage you are in life, those milestones can translate into term life insurance of 10, 15, 20 years or more. If you want your loved ones to be covered no matter what milestones you’ve reached, you probably want to opt for whole life insurance with no medical exam, which is designed to last your entire life.
The Price of Long Terms and High Coverage
In a perfect world, everyone would get the maximum life insurance coverage for the maximum term. However, we don’t live in a perfect world and most people can’t afford to pay the high premiums that come with these two maximums.
If you find yourself in a situation in which you have to choose between life insurance without an exam that has high coverage or a long duration, the insurance advisors at Sproutt recommend choosing higher coverage.
This is because policies with higher coverage and shorter duration tend to offer more protection at a lower price, which means these policies have a higher value. Additionally, it’s important that you have the coverage you need at the present moment — otherwise, you will be underinsured, and that won’t help anyone.
If you’d like to find out more about no exam life insurance and how much coverage you need, you can learn more here.
Main Features of No-Exam Life Insurance
While for most of the insurances, the company will ask you for a medical exam to evaluate the coverage, there is also a method without an exam and all that paperwork. However, no exam policies can offer much smaller value, but you could invest more money in them. During the process of getting this type of insurance, they only might ask you a couple of questions related to your health condition. Also, older people rather choose this type of insurance since it is much easier to get it than a regular one.
Two main types of no exam life insurance are simplified and guaranteed one. If you choose simplified no exam insurance, people from the company will ask you some questions about your health and might request a medical record. There is a chance for you to be rejected in case of some serious medical issues.
On the other side, the main benefit of guaranteed no exam insurance is that the company will not request any sort of medical record or report. In most cases, they will only ask you a couple of questions related to your state, are you a smoker or have any serious disease like cancer, AIDS, etc. However, you have to be aware that this type of insurance can be much more expensive, along with a smaller interest.
In Which Cases to Choose This Type of Insurance?
While it is faster and easier to get no exam insurance, it is not beneficial for anyone. There is no need for you to ask for this kind of insurance if you are younger, healthy, and have a steady job. However, there are cases where no exam is the only solution. For example, if you have some serious disease, heart problems, diabetes, or some other issue, the only option for you is to look for guaranteed no exam life insurance, since the insurance companies most probably won’t give you any other type.
Also, in case you are in a hurry to get life insurance or work under constant risk of getting injured, your first choice should be no exam one. Also, if you like extreme sports, the insurance companies would hardly accept your proposal for any other kind of life insurance. Furthermore, older people or ones with serious conditions often choose this type.
How Much Coverage is Needed?
While many people think that this type of insurance is much more expensive than a regular one, the competition between companies is very big. Therefore, you can find affordable no exam insurance. For example, no exam policy worth of 300,000$ can cost you about 50 dollars a month in 30 years. Most of the companies can offer up to 500,000 dollars, but there are also some with a limit of one million.
The Bottom Line
For average life insurance, you will need to deal with a lot of paperwork, and it is a long and complex process. On the other side, for no-exam one, the company will only ask you to provide a simple medical record and a financial report. The main benefit is that you can skip the process of getting the medical report, and save a lot of time and effort that way. While standard insurance can be much more profitable, no-exam is perfect for people with medical issues.