Q. Do all no medical exam life insurance companies have a 2-year waiting period?
A. While life insurance policies that do not require medical exams may cost more in terms of premium payment, these types of policies do exist. In most cases, all an applicant is required to do in order to qualify is answer several medical related questions to begin the application process.
With these policies, there are actually two different types of waiting periods – and it is important to understand which type of waiting period exists on the policy that is being applied for. These waiting periods include the following:
- Guaranteed Issued Life Insurance Policies – These types of life insurance policies, also often referred to as graded benefit life insurance policies are typically provided to applicants who would not qualify for fully underwritten life insurance coverage, such as a senior adult looking for life insurance and has severe health issues. In nearly all cases for these plans, no benefits will be paid out if the insured passes away within the first two years of the coverage being issued. In this instance, however, the policy’s premiums will be repaid, oftentimes even with interest.
- Suicide and Contestability Waiting Period with Simplified Life Insurance Policies – Life insurance policies also have two year waiting periods whereby information that is on the application may be further investigated. In addition, during that two-year time frame, the insurer may also investigate the cause of death of the insured if there is a claim that is filed by the beneficiary, and the claim may be contested by the insurance company during this two year time period. In addition, the life insurer also has the right to deny a death claim if the insured commits suicide during the first two years in which the life insurance policy is in force.