Does life insurance without medical exams come with a catch?

While there are many reasons people give for putting off life insurance, one of the most common ones is unwillingness to complete a medical examination.  If this is why you have procrastinated on life insurance, then policies that do not require a medical exam might seem like the perfect solution for you.  But are these policies really worth it?  Here’s what you need to know.

  • Underwriting Process for Standard Life Insurance

When you secure a regular term life insurance policy, you will have to complete a medical questionnaire, provide statements from your physicians, complete a medical exam, and submit lab tests.  While these steps seem tedious, they allow the insurer to get the best understanding of your health.  As a result of this extensive research, your insurer tends to offer you more affordable insurance rates.

  • No-Exam Life Insurance

No-exam life insurance goes by many names.  For instance, insurers may call it simplified-issue, accelerated, or algorithmic insurance.  During the underwriting process for no-exam life insurance, third-party partners will verify your medical and prescription history, financial history, driving history, and so on.

However, what no-exam life insurance providers don’t tell you is that you may still need to complete a medical exam to secure coverage.  If your medical and prescription history raises concerns about your state of health, then the insurance company may make you undergo a health exam anyway.

  • Is No-Exam Life Insurance Worth It?

Some people find that no-exam life insurance is worth it because the application process is faster, and you can usually secure a policy completely online.  However, you must also weigh the cons of this coverage.  For starters, the stricter underwriting makes it harder for people to qualify for this coverage.  Additionally, the amount of coverage you can secure is limited, and these types of policies tend to be more expensive than standard term life policies.

This is what you need to know about no-exam term life insurance.  Do you have additional questions about your life insurance coverage?  If so, then contact the experts at Randy Jones Insurance Services in Pleasanton, California.  We are ready to get you the coverage that you need today.