For most people the biggest hassle involved in finding life coverage is undergoing the medical examination.
It may seem ridiculous, but the vast majority of insurers consider an examination performed by your own doctor unacceptable. However, there do exist “no-exam” insurance plans that allow you to find coverage for protecting yourself and your family without having to submit to any medical exams at all.
What Exactly Is a “No-Exam” Coverage Policy?
It is a type of coverage policy that does not require a medical exam of your health to qualify for approval.
In the vast majority of cases you still need to complete a medical history form and also make available any information concerning diseases or other conditions you have or may have had (including in your family history), the amount of exercise you get, and your other health related habits, such as smoking and drinking.
While each coverage provider has a different set of requirements, all insurance companies have a limit on the amount of coverage you will get under a no-exam policy. With the vast majority of companies there exists a limit of $100,000 to $350,000 for life coverage policies offered without a medical examination. Most no-exam policies are structured as term policies with a much shorter term, usually around 5-10 years.
The Standard Medical History Form
All life insurance applications will involve some kind of medical history form. This form is usually more in-depth in a no-exam policy application.
The usual questions asked include:
• Date of birth, height and weight
• Use of tobacco
• Use of drugs, currently and historical
• Use of alcohol
• Any charges related to DUIs and any other driving violations in the last 2 years
• History of cancer, personally or in the family
• Habits of travel in dangerous places
• Habits of exercise
• Personal income
• History of medication use
• Any surgeries you have undergone
• Any past serious conditions you have had and the treatments you received for them
These questions are meant to determine what current or historical conditions or habits you have that might signal an increased chance of death, which will lead to the insurer charging higher premiums.
Despite not requiring a full medical examination, all insurers remain in the business of risk-assessment. The purpose of the questionnaire is to help them perform this function.
The Consequences of Life Insurance Fraud
While you are completing the medical history form, be completely sure that you are inputting the correct information. Do not succumb to the temptation to conveniently omit any relevant information concerning your past or current health, since a failure to provide all information can lead to the instant rejection of your application.
Once your application is approved, you are covered: from now on any decisions that you make concerning your health will not affect your existing coverage. You will maintain your current level of coverage regardless of what you do, even if that means you stop following prescribed medication regimens or refuse to have recommended surgery done.
Most no-exam insurance policies, and all other standard policies as well, have a two year period where they can be contested.
Therefore, the insurance provider can retract the policy if they find that you misinformed them concerning your health or committed some form of fraud in your insurance application.
Never assume that just because you were not required to take a full medical exam that your provider will not discover any misinformation in your application. Insurance providers are equipped with numerous sources for tracking down and discovering information to identify misrepresentations in applications, including your doctor’s medical records of your visits.
When is a No-Exam Policy the Right Choice?
No-exam policies are so popular because they are easy to qualify for and involve faster approval times. However, this policy type is not the best for all applicants.
No-exam policies may be the right choice when:
• Your highest priority is convenience and quick approval
• You do not require more than $350,000 in coverage, the industry standard maximum amount, though a few insurers may go higher
• You are prepared to pay higher premium rates. Without a medical exam, you will automatically be assigned the standard rate for premiums. If there are some complications in your medical history form, then you will receive sub-standard rates. This may be a good exchange for people who know that a full health exam would lead to even higher premiums or outright denial
However, if you believe that you will get better results from actually taking a medical exam, then be sure to prepare yourself as much as possible to get the best health review.
Start living healthy at least a month before the date of your health exam: exercise, improve your diet, and reduce or eliminate smoking and alcohol consumption. This may make you more fit for your exam, but do not lie about your health habits before you started preparing.
The Bottom Line
If the idea of a health exam is just too much hassle or you believe that your health is too poor to get good results from an exam, then no-life policies might be the right choice for you.
However, do not forget that your options will be limited and that you might be unable to refresh your policy when it expires if in the meantime you have developed a serious condition. If you are a healthy adult, it is likely in your best interest to take the traditional medical exam, since your premiums will be lower.
If you need any kind of additional assistance with finding or applying for a no-exam insurance policy, or anything else related to life insurance world, please give us a call.
We are a specialist agency that only deals in life insurance. Our mission is to handle as much of the process for you as possible. Our services come at ZERO cost, and there are no pushy sales tactics involved.
Please make full use of our free instant term life insurance quote form to help you identify the right kind of insurance policy for protecting yourself and your family.