Buying a life insurance policy can be a long and challenging process. Nobody wants to think about his or her own death, but it’s vital that you plan for the things that you can’t avoid. Having enough life insurance plan can give your family the protection that they need, regardless of what happens to you.
When you apply for life insurance, there are several different types of policies that you can choose from to fit your insurance needs. In this article, we will discuss two major types, medically underwritten policies, and no exam plan. Both of them have different advantages and disadvantages that you should be aware of when you’re looking to get insurance coverage for your family.
Before anyone is accepted for life insurance coverage, the insurance company is going to want an overall picture of what your health is. The better that your health is, the less risk you are to insure from the company’s point of view. The way that the insurance company is going to calculate your risk is by asking you dozens of different questions about your health and requiring that you go through a medical exam and then run the results through their medical underwriting to see how you stack up against their rating system and requirements.
When you’re looking to get life insurance, it’s important that you make the best decision for your family, in most cases, it’s always better to choose a fully medically underwritten policy to get your family the protection that they need.
Life Insurance and Medical Underwriting
Before the life insurance company approves your policy, they are going to want to see how much of a risk you are to insure. One way that they will do this is by seeing what type of health you are in. The better your health, the less of a risk you are to insure.
The medical exam is going to play a significant role for the insurance company in looking at your health and deciding how much your monthly premiums are going to be. 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.
Each insurance company is going to have different underwriting for their policies. Some of them are going to have more leeway, while others are much stricter on 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.
Because every insurance company is so different, you could get drastically different rates depending on the company that you go with. 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
There are several benefits of going with one of the policies that require you to go through the underwriting process for coverage. 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 won’t have the information that they need to give you the lowest rates.
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. With a no medical exam plan, you are going to be limited on how much insurance you can buy for your family. There are almost no limits on how much you can buy.
How much you pay for your life insurance is going to be one of the biggest factors that you’ll need to account for when you want to put insurance protection. There are dozens of different factors that are going to impact on much that you pay for your policy. The size of the plan, the length of the policy, the policy type, any additional riders that you have, and your results from the medical exam are all going to plan a major role in how much your monthly premiums are.
Life Insurance without the Underwriting
At the other end of the life, insurance spectrum is no medical exam policies that you can purchase to give your family the insurance that they need if anything tragic were to happen to you. Unlike a traditional policy, these plans will allow you to purchase insurance coverage without being required to take the medical exam. There are some serious disadvantages to these plans that you should be aware of before you purchase a no medical exam plan.
With a no medical exam, you’re going to pay much more for your life insurance coverage than you would with a traditional life insurance plan. Without knowing your health, the insurance company is taking on a much higher risk, which they are going to offset with higher monthly premiums. If you want the most affordable life insurance plan, a plan with medical underwriting is going to be the best option. But if you need high risk life insurance, we can help.
Additionally, if you go with one of these no medical exam, you’re going to be limited to how much life insurance you can buy with your plan. With most insurance companies, 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 help you find a final expense policy that best suits your individual needs.
As you can see, there are several pitfalls to the no medical exam policies, but there are also some advantages that you find with 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 or any pre-existing conditions that 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
Buying the perfect life insurance plan for you and your family can be a long and difficult process. You’ll have to decide between the different kinds of policies and find a company that offers the best prices for your life insurance. In just about every case, 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.
The best way to find an affordable life insurance plan is to work with an independent insurance agent, like our agents. Unlike a traditional insurance agent, independent agents don’t work with one single company. Instead, we work with dozens of highly rated companies across the United States. That means that we can bring all of the best rates directly to you and help you decide which plan is going to fit your needs perfectly.
If you have any questions about your life insurance needs, or about the different options available to you, please contact us today. Our agents would be happy to answer those questions and ensure that you’re getting the best coverage for you and your family.
Because you never know what’s going to happen tomorrow, you shouldn’t wait any longer to get the insurance protection that they deserve. Not having life insurance is one of the worst mistakes that you could make for your loved ones. It would leave them with a massive amount of debt and no way to pay for those bills. Maybe you are older and concerned about being approved for life insurance over 60; we can answer your questions and help you get the coverage you deserve.