Life insurance can be an excellent investment for your family. Yet, buying coverage is not always simple if you have a health diagnosis. It might lead to a policy denial. Some companies offer no-health-exam coverage. Could this help to meet your qualifications to get a policy? Before you decide, be sure to consider all of your options. Here is a better look at what to think about before buying.
Insurance Companies Need to Focus on Risk
If a life insurance company requests a medical exam, realize that this is a common, routine situation. Insurance companies need to determine how much risk you are to them. Will you die within a few months of getting coverage? Are you young and healthy and therefore, a low risk to cover? Health exams help to show this information. They give insurers an idea of what your life expectancy is.
How Can Some Companies Offer No Medical Exam Life Insurance?
Not all life insurance companies offer this. Those that offer a life insurance policy without a health exam may offer very limited coverage. They might charge you more for your coverage, also. Some may not require a medical exam, but may still ask health questions. If you fail to answer those questions accurately, your policy could be void.
Many companies offering no-medical-exam policies will provide you with coverage, but a lower amount than what you could get if you were to have a health exam that showed you were healthy. Sometimes, insurance companies refer to this type of policy as a guaranteed issue or a simplified issue policy.
Is It Right for You?
Here are a few things to think about before choosing this form of life insurance:
- Do you have any type of medical diagnosis, or do you fear that you may have conditions like high blood pressure, high BMI, or high cholesterol? If you fall in any of these areas, a no medical exam policy may be a good choice for you.
- These policies may offer a lower death benefit. Be sure that is enough for you.
- Most of these policies are a type of term life insurance policy. They remain in place for only a set number of years. That means you might have to reapply later.
When comparing options for life insurance, factor in the costs associated with each type of plan. If you are healthy, a no-medical-exam policy may not be worth it. With a health exam, you could qualify for lower costs and better coverage overall if you are, in fact, healthy.
Also Read: Can You be Denied Life Insurance?