No medical life insurance also known as simplified issue or guaranteed issue insurance policy is a unique form of insurance. It does not require you to undergo medical exams or lab work. In addition, the application process is not as intensive and lengthy, unlike the ordinary life insurance application. The simplified form of application allows you to apply for cover by providing answers to basic questions about your health. If your answers fit the requirements of the underwriting guidelines for the company offering the policy, you may be eligible for the cover.
Basically, the no medical approach is the way to go if you want life insurance but prefer to avoid paperwork associated with ordinary policies. This type of insurance gives cover even if you have some health issues. In most instances, these policies are marketed to older people who are likely to have medical problems which make it hard to get other types of insurance.
No medical covers are term life insurance policies with little face value. While a typical term life insurance cover is likely to pay a death benefit within the policy term such as 10 or 30 years, a no medical exam policy will have a lower face value but can be bought for larger amounts of money.
No medical insurance versus other types of life insurance policies
So, how does no medical life insurance compare with other types of life insurance policies? A conventional life insurance policy requires that you undergo a medical exam. Most of the time, a medical examiner visits you at home at your expense and take you through various medical tests including taking your height and collecting urine as well as blood sample.
Once the lab results are processed, the life insurance company will offer you a policy based on those results. In some instances, the insurance carrier may require a doctor's statement.
If you are a healthy individual, the policy provider can issue you with insurance cover within 48 hours. However, in ordinary circumstances, it takes 2-4 weeks for the insurance carrier to make an offer. For people deemed as less healthy, the waiting period can extend to 6 weeks or more. Though conventional life insurance takes more time and requires more paperwork, savings can be substantial over the course of a 20-30 year term.
On the other hand, no exam life insurance carries the benefit of quick security, quick application and the option of avoiding medical examinations.
Two types of no exam life insurance
Simplified term life insurance
This policy does not need a medical exam but the insurance company is likely to ask detailed medical questions. In some instances, they may request you to supply them with your medical records. If you have certain medical conditions which do not fit in their policy requirements, they may reject your application.
Final expense life insurance
While few people like to talk about end-of-life matters, it is necessary to plan for death since it is inevitable. Acquiring a good final expense life insurance cover can take care of anxiety that comes with death.
Final expense life insurance is aimed at covering expenses such as caskets, embalming and headstone. This form of insurance is not designed at leaving extra money for the people left behind. Rather it is aimed at relieving them from the burden of incurring funeral and burial costs.
