Remember the days of dial-up AOL? Surely no one misses those sounds anymore, or the waiting. Today, everything operates at breakneck speed. Connection happens within milliseconds, not minutes. We expect next-day delivery from Amazon, immediate results from Google, and waiting a few seconds for a website to load is just unacceptable. With technology speeding up the way we live our daily lives, it’s no surprise that people expect the same speed when buying life insurance.
The problem is that most life insurance policies cannot be “delivered” in 24 hours. It can take weeks, or even months, for an application to be approved once it’s submitted. And that’s not counting the time it takes to fill it out and undergo a medical exam.
Fortunately, there is a solution to slow-moving traditional life insurance policies. These are no exam policies, which can be applied for entirely online, can be approved immediately or within a few days, and don’t require a medical exam.
Sound too good to be true?
It’s not. Read on to find out more about no exam life insurance.
What is No Medical Exam Term Life Insurance?
No exam life insurance is exactly what it sounds like: life insurance that doesn’t require a medical exam. There are different types of no exam policies, so you may hear the term used interchangeably with other terms, such as:
- Nonmedical term life insurance
- Simplified issue term life insurance
- Rapid issue term life insurance
- Express term life insurance
All of these are types of no exam life insurance, and while they differ in detail, the one thing they do have in common is that none require a medical exam.
Term Versus No Exam Term
No exam term life insurance is similar to its traditional term counterpart in that you purchase it for a certain period of time. The term can be 5 years, 10, 15, 20, etc. and the length you choose will depend on your specific needs. While you don’t want the term to be too short, you also don’t want it to be too long. The longer the term, the higher the premiums will be. If the policyholder dies during the term, the death benefit will go to the listed beneficiary. Once the term is over, the coverage is no longer valid, though some insurers do give the option to renew.
The Advantages of Term No Exam Life Insurance include:
- No exam policies are approved faster – Usually within 24-48 hours, you can have your answer. The application process, including signatures, are done electronically, and the underwriting process is streamlined so you can get an answer quickly.
- Convenience – No exam policies don’t require you to undergo a medical exam, be poked and prodded by a healthcare professional, etc. They don’t even require you to print anything, since the entire application can be done from your desktop or mobile device.
- No exam – Whether you have needle phobia or don’t have time to wait for an doctor’s appointment, skipping the medical exam is a big selling point of no exam insurance.
The Disadvantages of Term No Exam Life Insurance Include:
- More expensive – No exam term policies tend to be more expensive than traditional term. This isn’t because you’re paying for the convenience, but rather, because without a medical exam, the insurer assumes more risk. Even insurers that gather information from pharmaceutical and Motor Vehicles reports still don’t have as much information as they would get from a medical exam.
- Coverage is limited – Most term life insurance coverage goes up to $500,000 or $1 million, depending on the insurer. That may be enough for your needs, but if it’s not, then it can be a problem.
If cost if the only thing holding you back from buying a no exam policy, the best thing to do is get a free quote. Then you can see the numbers for yourself and decide immediately whether it’s in your price range or not. Many websites offer free quotes, but Sproutt.com is one of the best.
In the past, the selection of term no exam policies was very limited, but today, due to the high demand, many insurers offer multiple types of no exam policies, which means that you don’t have to settle for high rates unnecessarily. It also means that you may be able to get a really good deal on no exam life insurance. As more insurers offer these kinds of policies, rates are lowered due to the competition. Therefore, it pays to do your due diligence, get quotes, and take your time deciding which policy is right for you.