The medical exam is when the insurance company to get all of the information about your current health and any pre-existing health conditions that you may have. The health exam is going to play a significant role in your chances of getting coverage and how much you’re going to pay every month.
If you want to avoid the medical exam, for whatever reason, you can! The best option is a no exam policy, but there are several things that you should know about these no exam plans before you purchase one.
The most notable characteristic of no exam life insurance coverage is the waiting period that a lot of companies are going to attach to their plan.
The waiting period can impact your coverage, but a lot of people don’t understand the waiting period. This article should answer any questions you have.
No Exam Waiting Period
Most carriers place a waiting period on their no exam life insurance plans. What does this mean?
If you died in the first two years after you bought the plan, then your family wouldn’t get paid from the insurance plan.
Some companies will return your premiums if this happens, others won’t. It depends on the company.
There are several reasons that insurance companies place this waiting period on the no exam plans. The most common reasons that they place these restrictions on no exam plans is to keep people from purchasing one of these policies and then committing suicide.
Before the waiting periods were in place, there were a lot of applicants would purchase a life insurance plan right before they committed suicide. They would do this so their families would get the money from the policy.
The other reason that the companies have these waiting periods in place is to offset all of the risks that they are taking. Depending on the no exam plan, the insurance company may not be getting a ton of information about the applicant.
Because there is no health exam required, the insurance company may not know about any severe health complications that you may have. If you have a serious health problem, and the insurance company doesn’t know about it, the insurance company could end up paying out in the first year, which means they are losing money.
Do All No Exam Policies Have Waiting Periods?
If you want to purchase a no exam policy, but you don’t want to have to wait two years for your policy to be in full force, there are a few insurance companies that offer life insurance without the exam, but won’t have the waiting period.
These plans are not very common, and they are going to be more expensive than a plan with a waiting period.
Without the waiting period clause attached to the plan, the insurance companies are going to want more money for the protection. Those plans are riskier for them.
Getting Affordable No Exam Life Insurance Coverage
If you buy life insurance while skipping the exam, you’re going to spend more every month. While there are a lot of affordable no exam plans, none of them are as cheap as a plan with the health exam.
Want to find some ways to ensure you’ve got the cheapest policy while skipping the physical? Here are some factors:
- Tobacco Usage
- Driving Records
- Other Options
Each of these categories should drive your rates up. We are going to look at them individually to show you how you can get the best price possible.
Let’s start with the obvious, tobacco. Using any kind of tobacco is going to put you at risk for health problems, which means you’re riskier to the insurance company.
Each carrier has different views of tobacco usage, but you can bet on paying at least twice as much.
While you won’t have to go through a traditional medical exam, they are still going to pull a lot of records to get a view of your health. One of the things they will look at is your MIB records, which will show them any medications you’ve taken in the past 5 years.
Additionally, the agent will see how your driving is. If you’re a safe driver, you have nothing to worry about. If you have several accidents or tickets on your records, here comes higher rates.
The simplest way to grab cheaper no exam coverage is to shop around. As we mentioned, there are a lot of carriers with no health exam options, they aren’t created equally.
You need to search until you find the cheapest carrier. Some carriers have perfected the no exam pricing, which will mean cheaper coverage for you.
How do you know which companies those are without calling every single one of them?
This is where we do the hard work for you. We have spent years creating relationships with each carrier. Our work is your gain. You can make a single call to use and we will deliver the no health exam life insurance options straight to your email.