Figuring out if not having a doctor’s visit is the best bang for your buck.
When deciding what life insurance policy to buy, many factors come into play. First and foremost, you want to make sure that the policy you choose will be able to protect your family and the assets you left behind. Then you have to figure out what kind of insurance you want, whether it be term or whole life, is the most beneficial for your loved ones. Most people opt for term life insurance, so you’d also have to fill out a term life insurance online application. There’s definitely a lot to think about!
One part of the process for many companies is to ask questions to determine your life risk, which is called insurance underwriting. It is basically them wanting to know how much it will cost to insure you. Part of that process can include the potential customer providing results from a medical exam.
That all can seem very invasive and even intimidating. The good news is many life insurance companies offer term life insurance quotes with no medical exam. But is it less expensive to get a policy that requires a medical exam vs. one that doesn’t?
The Wyshbox Blog
- To needle or not to needle?
- So, will your term life insurance rate be more expensive or not?
- What about trust?
- In conclusion
To needle or not to needle?
As mentioned before, the reason life insurance companies have traditionally required a medical exam is to determine if you will be kicking the bucket sooner rather than later. If your results are unfavorable, then your premiums will typically be higher. This can make potential customers nervous depending on what the insurance companies decide post the exam.
However, in the past decade or so more companies have started eliminating the need for a medical exam. Although mostly done for convenience, costs can also be lowered because the companies cover the bill for the medical exam. Since they no longer have to cover the physical it reduces the cost of the underwriting expense and your term life insurance rate will also be lower. Cha-ching! However, it’s important to note that the biggest factor in determining if you will indeed be insured at all is your medical history and at what rate you will pay your premium, despite not having an exam.
If you choose to buy a policy from a company that does not require a medical exam it doesn’t mean that you won’t have to provide medical information. In fact, many of the medical requirements, like a thorough evaluation, prescriptions, lab results, will be asked despite not having to take a trip to your doctor’s office.
So, will your term life insurance rate be more expensive or not?
Despite premium costs being higher once a person goes in for an exam it doesn’t necessarily mean that choosing a plan where no medical exam is required will be less expensive. Traditional term life insurance rates are not necessarily more expensive than the no-medical exam counterpart. The advantage of getting a term life plan without the physical requirement is that the waiting period is much faster.
What about trust?
Since companies are relaxing their medical exam requirements you might be asking yourself if these companies are sketchy. The truth is the companies that allow potential customers to skip the exam are credible, though the application process is still very thorough in order to get a term life insurance quotes with no medical exam.
Most term policies are available for people aged 18-60, with no history of smoking so put that cigarette out if you want to be able to get a good rate. They also conduct phone interviews where the questions range from your driving history to what meds you take. If there are no red flags and you’re considered a desirable candidate you can be approved within minutes.
In this case they might ask for:
- Previous physicals and labs
- Pharmacy records
- Prior diagnoses and procedures
- Medical billing records
- Credit history
- Driving history
- Relevant public information such as criminal history or bankruptcy
If you’re unable to get coverage due to age or health complications there are other options such as guaranteed life insurance which is basically a person guaranteeing they will pay their premium, which tends to be very expensive with a low death-benefit pay out.
Group life insurance is another option, usually offered by an employer. However, the amount of coverage offered is usually low and if you leave your job you will no longer be covered.
Simplified life insurance are plans that are created for you by life insurance companies but because of limited information the plans and premiums tend to be real pricey.
The bottom line is if you’re nervous about taking a medical exam to receive term life insurance rates and eventually get covered, there are many options out there where you don’t have to go that route. The key is to stay as healthy as possible and make sure to tell the truth on your questionnaire because if they find out you deceived them, your family could be denied the death benefit pay out. Getting a policy from reliable companies without having to go through a physical will definitely ease the process of protecting yourself and your loved ones.