Having a life insurance policy is very important these days; the kind of financial support that your need today, or your family will need after you die will be given to you through a life insurance policy.
Whatever age you are, when you’re opting for a life insurance policy, you must have heard about a medical exam.
A medical exam is basically an evaluation on your health condition to determine which kind of policy you will need and what amount of premiums you will be required to pay each month or year.
It’s true that a lot of policies have been rejected to people if they didn’t pass the exam. Why? Because the insurance company needs to know for sure whether you’re a good choice they will be investing their money in. Let’s see it this way; if your health condition isn’t too good and you’re a smoker, or have been diagnosed with a preexisting condition, chances are you won’t live that long. Which means the insurance company will have to pay your beneficiaries the whole death benefit when your premiums only amounted to half of the death benefit.
That’s a loss for the insurance company, and they are smart enough to not take that risk. You will either be required to pay a very high amount of premiums or not qualify for the policy altogether.
As tempting as it sounds to opt for a no medical exam life insurance policy, it’s not all great. The exam is necessary for the insurance company to properly evaluate how much premiums you’ll be paying. What if they charge you a high rate based on a few questions only? After all it is their responsibility to get the best deal possible, and they will do so after the medical exam.
What happens in a Medical Exam?
You’re probably wondering as to what even happens in a medical exam? Why are people so scared of it and would rather opt for a policy that doesn’t require health questions or an exam?
Well, this is exactly what happens.
A policyholder is given 1-2 weeks to ‘prepare’ for the exam and is given a date. They are required to fast the day before but be hydrated by drinking lots of water. A medical exam includes blood tests which indicate if you have drugs or nicotine in your system and a pulse check to see if there is blood pressure. Moreover, extensive check of heart rate, collection of urine samples is all done.
It is advised to not smoke at least 8 hours before the test because it could indicate high blood pressure and reduce your chances of qualifying.
Other than all these samples, they collect your personal information such as your identification, measurements of your weight and height and may ask questions about your lifestyle, eating habits, hobbies etc.
A typical medical exam is of 20-30 minutes, and the insurance company gives your tests to the underwriter who then thoroughly checks and determines the results. It is often your insurance company that pays for the medical exam, so if you’re not too scared of needles and clinics, it is always better to have an exam so that you can be charged just the right amount of premiums on your policy.
Whole Life Insurance No Medical Exam
If you’re someone who hates, or is afraid of needles and blood tests, you will probably chicken out at the idea of having a medical exam. But guaranteed whole life insurance is type of a permanent policy that DOES NOT require a medical exam.
But, here’s the catch.
A guaranteed whole life insurance policy has a waiting period of up to 3 years. In case the policyholder dies during this waiting period, beneficiaries will receive NO death benefit. Most people only opt for life insurance policies because of the death benefit, to secure the financial condition of their beneficiaries in the uneventful case that they die. So if you’re not even getting that, why would you even want such a policy?
There’s the other side of the coin too. If the policyholder dies during this waiting period, all amounts of premiums that he has paid during this time will be returned to the beneficiaries with a 10% interest as well. And, this will happen IF the policyholder dies during the waiting period. If they are fortunate enough to outlive the waiting period at least, there is guaranteed death benefit for beneficiaries.
Term Life Insurance No Medical Exam
There are certain term life insurance policies that do NOT require a medical exam. A term life policy- unlike whole life policy- is only eligible for a specific term of 10-20 years and only gives a death benefit.
But how does a term life insurance with no medical exam work?
It is important to note that if there is no medical exam, you may still not be able to qualify based on other factors such as the medical questionnaire, if you’re a smoker, have been diagnosed with a fatal health condition.
No medical exam means there won’t be any blood tests and urine samples. No one will invade the privacy of your body or your home. So you’re good there.
A term life insurance without medical exam also has limited coverage of around $1 million, but you can extend the limit as per the nature of the policy and your own requirement.
Even if you do get away without giving a medical exam, you will still have to answer medical questions. Sure, they won’t be as extensive as you would have thought, but there is no life insurance with no medical questions. A basic questionnaire is the bare minimum that your insurance company should ask about you, to generate the best plan for you.