Many people purchase life insurance to help secure the financial stability of their loves ones after their death. In most cases, you must submit to a medical exam in order to purchase the life policy, because the insurance company wants to assess the risks involved with insuring you.
It is easy to get term life insurance quotes online. There is no shortage of websites offering them. Those quotes will rate you at the highest possible rating. Easy, right? Sadly it's not. There's a whole application process that comes after the quote. And that process can take 4-8 weeks or even longer to complete. Some people can wait that long, either because they have other coverage or want to save money by going through underwriting. But others can't wait. They need the life insurance now. Enters no exam life insurance.
Today, some companies today offer life insurance with no upfront medical exam. Many clients are requesting such policies these days. It's not surprising either. No exam life insurance is hot and a growing trend right now. You can be approved within days for a life insurance policy.
An increasing number of life insurance agents, including myself, are firm believers that life insurance products with no medical exams help families that otherwise would not have purchased life insurance. A medical exam could be seen as one of the biggest inconveniences of the process. No medical exams take away the excuses of not having time or not wanting to take a medical exam. What's not to like? The problem is that you might not qualify for it.
Since there is no medical exam, I qualify automatically, right? NO. Absolutely not.
Due to its very nature of a simplified, accelerated process, no exam life insurance is tougher to qualify for. Life insurance company underwriting guidelines are more strict.
The truth is that you need to be in great health to qualify for these no-exam policies. You first answer a series of health questions on the application. If you pass, then the insurance company checks your pharmacy records, motor vehicle report, and the MIB (Medical Information Bureau). If ALL of these come back within the insurance company's guidelines, you will be approved for no medical life insurance. If not, you will required to complete a medical exam.
Reasons Why You Might Not Qualify
All life insurance companies have age limits for new term life insurance policies, with limits for no exam policies usually lower. These age limits vary by company, amount of insurance, and term length. An example would be:
American National Life Insurance Company of New York
- Ages 18-50: $250,000 - $1,000,000 (standard to preferred ratings)
- Ages 51-60: $250,000 - $500,000 (standard to preferred ratings)
Height and weight, or build, is the number one reason we see applicants not qualify for no exam life insurance. Most insurance companies have very strict height/weight guidelines. If you fall outside these limits, you will not qualify. We will always ask you for your height and weight before we recommend a no exam policy.
3. Medical Conditions
The presence of certain medical conditions will automatically exclude you from a no exam life insurance policy. This varies by company and depends upon the company's underwriting process. Regardless of company, these medical conditions will disqualify you from a no exam policy with any company:
- Alochol/Drug Abuse
- Bipolar Disorder
- Heart Disease
- Kidney Disease
- Multiple Sclerosis
Medical conditions such as anxiety, asthma, diabetes (Type II), sleep apnea, and others may be allowed by some companies. This depends greatly on the diagnosis, treatment, and stability of the condition.
4. You Haven't Seen Your Doctor Recently
Without a medical exam, life insurance companies need other ways to ensure you are healthy. One way is to see that you have had routine visits with your doctor. If you haven't been seeing your doctor regularly in the past few years, then you might not qualify for a no medical exam.
5. You Have Filed For Bankruptcy
Believe it or not, but a bankruptcy will disqualify from a no medical exam, or possibly even life insurance. In addition to being healthy, a life insurance company wants to make sure that you can pay the premium. If you can't, then they will not consider you for life insurance. Your chances do improve the longer you have been discharged from bankruptcy, generally after 5 years.
It's important to understand that even though you may not qualify for a no exam life insurance policy, you are not being declined by the insurance company. They are just requiring an in-home medical exam to continue with the underwriting process and further assess you. This does add time to the application process, but it is better than being denied entirely.
Related Blog Posts
Term Life Insurance: Why Do I Need It and Can I Afford It?
Permanent Life Insurance: Insuring You For Your Entire Life
Why Young Families Need Life Insurance
I Have Life Insurance Through My Employer: Why Do I Need Another Policy?
Ten Reasons Why People Don't Buy Life Insurance
Dutchess County NY residents, at Pepe Insurance Agency, we work with you to make sure you have the coverage you need, while delivering it at the best price. Give us a call at (845) 724-3031 or fill out our Contact Us form to get in touch with an agent. We want to make sure you meet your insurance goals and protect what is most important to you!
Written by Bill Pepe