Through the years, life insurance has seen a lot of changes. Once upon a time, insurance was a pretty straightforward purchase.
Now, it’s not as simple.
Just about every insurance carrier (and there are about 6,000 of them) has a dozen life insurance options.
No exam life insurance is becoming more and more popular every year. Some customers are deciding to skip the exam and get life insurance quicker. For some people, it’s the perfect solution.
If you’re looking at your different options, you need to consider both no exam policies and traditional underwritten plans.
To help you along the search, we’ve detailed some of the benefits of each kind of plan.
Life Insurance and Medical Underwriting
During the medical exam, the paramedic will ask you a few basic questions about your health or family history, and then they will take your weight, blood pressure, and get a urine and blood sample.
If you want low price life insurance, we can help you find the coverage you deserve.
Each insurance company is going to have different underwriting for their policies. Some are more relaxed, while others are much stricter about what they allow and the rates that they will give for their policies.
For example, some insurance companies will automatically give an occasional cigar smoker “smoker’s rates,” while others have wiggle room in their underwriting to give the celebratory cigar smoker standard rates.
The quotes you get are going to be wildly different. This is especially true if you have any pre-existing conditions, like diabetes or heart conditions.
With some companies, a preexisting will mean being declined automatically, with others you could receive very affordable rates for your coverage. We can help you learn more about life insurance for someone with pre-existing conditions.
The Advantages of Medically Underwritten Policies
The best advantage is that the insurance company gets more information on your health, and they will give you better rates for your plans.
The more information that the insurance company has, the more affordable rates that you’ll get. Without getting the information and running your results through their underwriting, they aren’t going to give you cheap coverage.
Another advantage of the fully underwritten policies is that you can purchase as much coverage as you want. If you choose to go with a no exam plan, you’ll be severely limited on how much life insurance that you can buy for your family. They are going to restrict how much insurance you can buy for your family. There are almost no limits on how much you can buy.
An underwritten policy is MUCH cheaper than a no exam policy. The more info the insurance carrier gets, the cheaper it is. Without the medical exam, your premiums are going to be two or three times more expensive.
Life Insurance WITHOUT the Underwriting
With most no exam plans, you’ll only be able to buy up to $250,000 of life insurance with your plans. For most applicants, this isn’t enough money for the debts and final expenses that you will leave behind if you were to pass away. We can locate a final expense policy to suit your individual needs.
There are also some advantages that you find in a medically underwritten plan. The first one is that you can get accepted for coverage drastically quicker than with the other life insurance options. Because these plans don’t require that you take the medical exam or that your results have to go through the underwriting, you’ll be able to purchase a plan in a matter of day versus the several weeks that it takes with a normal plan.
The obvious advantage is that anyone can be accepted for one of these plans. You won’t be hindered by poor health you have. Because life insurance is so important, it’s vital that everyone can get coverage, regardless of your health or any severe health complications that you have.
Underwritten vs. No Exam
You’ll have to decide between the different kinds of policies and find a company that offers the best prices for your life insurance. You should only use the no medical exam plans as a last resort for your insurance needs. Unless you can’t be accepted for coverage, or you need life insurance very quickly, it’s always better to find a plan that has the medical underwriting requirements.
If you’re still wondering about the difference or which plan will fit your budget and needs, go ahead and contact us.
As insurance professionals, we’ve helped thousands of customers get connected with quality policies. We’ve answered hundreds and hundreds of questions about both underwritten and no exam policies.
If you want to compare prices for both kinds of policies, the easiest way is by calling us. We can bring all the numbers together and make it simple for you to compare head-to-head.