There is often a big misunderstanding amongst customers about no medical exam life insurance. The truth is, they aren’t all what they sound like and can mean very different things from company to company and policy to policy. So let’s quickly summarize the gist of each type and then dive into detail.
Basically there are 4 types of no exam life insurance. And they are as follows:
- Simplified Issue – this is the one typically called no exam life insurance. It has strict underwriting, which means you have to be healthy to qualify.
- Guaranteed issue – this is the type of life insurance that has no exam, no questions, and is issued on a guaranteed basis. Meaning anyone(in a certain age bracket) can qualify.
- Graded Death Benefit – this policy provides a graded protection. This means that the full death benefit doesn’t get paid out in the first few years, rather it gradually increases over time.
- Level Final Expense – This is a whole life insurance burial policy. You will pay a set premium for the rest of your life to cover any final expenses. This usually involves a lenient health questionnaire but no exam.
That’s the short of it, if you want to compare simplified issue rates you can use the quoter on the right or go here. If you want to compare guaranteed issue or final expense quotes, click here. Otherwise, let’s dive into detail about each of these products.
Simplified Issue
This product is the no exam life insurance for those looking to skip out on the needle and speed up the underwriting process. As mentioned, the simplified issue companies are more strict than traditional life insurance policies when it comes to background checks. It’s actually the only no exam product that’s harder to get, in terms of underwriting, than a traditional coverage. They will go through your personal and medical history to see if you’re in good shape. Underwriting can take a couple of days to a couple of weeks, depending on the company.
Most of these policies cap at $250,000 to $400,000 in coverage while one company will offer an exception for the ultra-healthy at $1,000,000. These policies can be more expensive due to the company taking on a bigger risk by not administrating the exam. This is also the reason the coverage is capped. To learn more about which company offers these products and their cost, compare no exam quotes here. If you’re looking for no medical exam life insurance over 50, then you may want to seek other options if you’re less than healthy.
Guaranteed Issue
This is the last resort life insurance coverage. You don’t want to head the guaranteed issue route unless you have exhausted all other options. This is life insurance for those that are uninsurable. First you want to make sure that you actually are uninsurable. This can be done by working with an independent agency that’s familiar with high-risk cases(that’s us). You can learn more about whether or not you’re uninsurable here.
Guaranteed issue life insurance is no exam, no questions asked. It’s usually capped at $10,000 to $25,000 depending on the company. It will also be more expensive than traditional life insurance for the same coverage amount. With a GI policy, you can expect a 2 year waiting period. This means that if you were to pass away in the first two years, your beneficiaries will only receive the premiums you paid in up to that point. Anything after two years is a full death benefit payout. To compare quotes with all the companies go here.
Graded Death Benefit
Graded death benefit life insurance is also for those who couldn’t get traditional life insurance but it isn’t absolutely guaranteed. To get a graded policy you would have to answer a few basic health questions to qualify, otherwise, there is no exam, and no strict underwriting. This policy is called “graded” because it doesn’t immediately provide the full death benefit coverage. It simply grows in increments, so for example it will only pay out 15% in the first year, 30% in the second, etc. This will go on for 2 to 3 years depending on the company and policy. The coverage for a graded policy is usually capped at $50,000.
Level Final Expense
This is a no exam product that has a questionnaire that if you could answer favorably to, will get you covered. This product will NOT have any kind of waiting period but you will have to qualify. These final expense policies are usually done for those looking to cover their final expenses which usually include burial costs, medical expenses, any legal fees, and anything else that will be associated with the passing. These policies usually cap coverage at $50,000 to $100,000 depending, again, on the company.
So here is a bulleted summary to make you life easier.
Simplified Issue
- Strict Underwriting
- Capped Coverage at $250,000 to $400,000
- More expensive than traditional
Guaranteed Issue
- No underwriting
- 2 year waiting period
- Capped coverage at $25,000
Graded Death Benefit
- No Underwriting
- Lenient Health Questionnaire
- Capped Coverage at $50,000
- Death benefit increases annually until reaches cap
Level Final Expense
- Health Questions
- No waiting period
- Capped $50,000 to $100,000
Which One Should I Get?
That will depend on a few factors. These include:
- You Health
- Your Budget
- Your Need
My advice is to let us do all the work for you in determining what type of coverage you need. You can browse our website and compare quotes with no personal information required. Once you feel you’ve seen enough feel free to call us at 888-492-1967 or chat us up with any questions if it’s not too late.
