Advantages and Disadvantages of No Exam Life Insurance
If you want life insurance but don’t want to invest in a health exam, then no exam life insurance may be the right choice for you. Before deciding to invest in this type of policy, you should understand the advantages and disadvantages of buying life insurance without a health exam.
Advantages of No Exam Life Insurance
One great benefit of this insurance is that you don’t have to make time in your busy schedule for a health exam. There is no need to have blood and urine samples taken. If you are very busy or just want to avoid being examined by a stranger, this will appeal to you.
Another benefit of no exam life insurance is that the application is simple. There is very little information requested on the application, so it doesn’t take much time to fill out the application. It is important to answer all questions honestly. The insurer will confirm the information you provide by looking at your medical records and other information. Failure to answer questions honestly can result in your application being denied.
There is very little waiting involved with these policies. If you need coverage immediately and don’t want to wait a few weeks for the traditional process, then a no-exam policy is an excellent choice.
Disadvantages of No Exam Life Insurance
It may seem ironic, but the ability to skip the exam is also a disadvantage. While you appreciate saving time by avoiding the exam, the insurer will have much stricter requirements for people to qualify. While these policies are easier to apply for, they are actually harder to get because there is no health exam.
The company views a no exam life insurance policy as a higher risk than other policies. They need to protect their investment, and they do this by charging higher rates for these plans. The prices are still affordable, and you may not see much of an increase if you get your no-exam policy when you are in your twenties. If you wait until you are in your fifties to apply for this coverage, you may see a substantial difference in the price of insurance.
When it comes to no exam life insurance policies, there are advantages and disadvantages. If your main goal is saving money with lower premiums, then you should consider a traditional policy. However, if you don’t have time for the exam or need immediate coverage, then no exam life insurance may be the best choice for you.