For the longest time, those who wanted a life insurance policy had to endure medical exams that could easily result in higher rates or even flat-out denial because of existing health conditions that could easily impact their lifespan. For many people, the fear of dealing with the exams and the insurance company decisions caused them to simply forgo any life insurance at all, leaving their families without those much needed benefits in the end. Then, along came no-exam life insurance policies. These would appear to be the ultimate answer to the problem. However, no-exam policies are not for everyone. There are several things to consider before you simply jump aboard the no-exam bandwagon.
The Advantages
Life insurance policies not requiring a physical exam do have their advantages. Instead of filling in some lengthy booklet that details your entire medical history, you simply answer a few health questions or sometime, none at all. This makes the life insurance application process much shorter. These kinds of policies also often allow for you to fax, e-mail, or mail in your application, as opposed to meeting with an agent. The whole idea protects your privacy regarding anything beyond the basics.
In addition, you do not have to worry about taking the time out to go see a doctor or possibly even spending money out of your own pocket for an exam. Even if you only had to pay a co-pay or just spend the money for the gas to get there, money is money and every little bit saved makes a big difference.
Because it takes far less time to process no-exam applications, the cost is lower for the insurers. That, in addition to the overall lower rates that have appeared in the last decade could be a good thing.
What to Consider
If you are young or in reasonably good health, it might be worth it to go ahead and go through a standard application process and medical exam. Your good health and age could qualify you for an even cheaper rate. For older folks, those with preexisting health problems, a history of smoking, and other major lifestyle considerations, it might be best to go with the no-exam option. Few questions are asked, so no one is going to raise an eyebrow over health-related concerns, and in the event of the inevitable, the benefits will still be there to help your loved ones in their time of need.
The best way to go about it is to get quotes from several companies based on both options. See what the rates will be and if you feel you can qualify for the cheaper rates with a physical, the whole effort might pay off. However, if you don’t see yourself qualifying or you don’t feel there is much difference in the rates being offered to you, skip the hassle and go for the no-exam plan.
