The Ultimate Guide to No Exam Life Insurance

Graded Death Benefit

This type of life insurance with no medical exam can be seen as the midpoint between the two above types. Graded death benefit life insurance is slightly stricter than GI insurance but can offer several more benefits.

 

After answering a few common health questions, the phased in death benefit is the most notable advantage. Instead of completing a waiting period like other types of life insurance, policyholders can expect an amount of coverage determined by how many years you are a member. If you pass away within the first two years of being a member, the company might only pay half or a fraction of how much your policy is worth.

Graded death benefit life insurance is also less expensive than guaranteed issue (but more than traditional policies). Because some degree of underwriting is being done, your rates won’t be as high. Finally, you can expect higher coverage amounts than guaranteed issue, typically up to $50,000.

Final Expense Insurance

Where Guaranteed Issue is often seen as the last resort of life insurance policies, final expense can be considered ‘burial insurance.’ You might even see it offered as such while searching around.

Final expense coverage is designed to cover the expected costs associated with death, which can include burial and ceremony, small debts incurred, and any final medical bills.

 

This type of life insurance offers policies that are small, permanent, and locked-in premiums. Coverage can go up to $100,000 from some companies, and policies can be issued usually up to age 85.

Advantage of Getting Life Insurance Without Exam

One of the biggest concerns that arise when applying for life insurance is about how much coverage you could receive. Although each company may have different policies and rules, the general perception is that a medical exam is required to be eligible for all types of life insurance. Most companies will not give you whole life or universal life insurance without a medical exam—however there may be exceptions.

A major misconception however is that people think simply because you are buying a no exam life insurance policy that you are getting less coverage. This is generally not true, as the life insurance companies that offer no exam insurance have policy limits based on your age, health history, and income.

As mentioned above, each company may have different coverage amounts and terms, but you can follow the guidelines below for non-medical exam insurance coverage:

  • Infant to age 21: $5,000 – $50,000
  • Age 21 – 65: $25,000 – $500,000
  • Age 66 – 75: $5,000 – $99,999

This is comparable to some life insurance policies, but the rule of thumb is that only term life insurance is available for no medical exam. Universal and whole life insurance polices can last for significantly longer terms with coverage up to one million dollars.

One thing to be aware of is that you might experience premiums as a result of the convenience of getting approved for life insurance with no medical exam. It might not always be too bad, a few dollars more per month. In some cases, however, you might be looking at significant increase. Fortunately, you can apply online for nearly all life insurance companies these days so be sure to compare your options and read the fine print for subtle price changes like this.