Buying life insurance is one of those pesky "adulting" responsibilities that many people put off until it's too late.
Many people live as though they think they're going to live forever. Then one day the doctor has bad news for you and you're left wondering what will happen to your family when you're gone.
So you turn to life insurance. After all, that's what it's for, right? But then you find out that a medical exam is required and you don't qualify because your health is poor.
All hope is not lost. There are no medical exam term life insurance policies that you can buy. However, they are not all created equal and don't make sense in all situations.
Check out these 7 surprising facts that will help you make a decision about what kind of life insurance to buy.
Guaranteed issue life insurance is pretty much what it sounds like. You get a life insurance policy, period. No medical exam and you can't be turned down for health reasons. That sounds great, right?
These plans carry a higher inherent risk for the life insurance company. Because of this, they tend to have higher premiums and generally offer a lower coverage amount.
If this is the only type of life insurance you can get, it may be a great option for you. However, if you find that you can qualify for a different type of life insurance with a higher payout or lower premium, that would most likely be your better option.
Life insurance policies vary greatly from one company to another. Plus, there are many different options offered by each company.
For example, are you are looking for a higher coverage amount? You can often get it but you'll have to pay a higher premium.
However, many companies cap their no exam life insurance policies at a certain amount. Even if you're willing to pay a higher premium, they simply don't offer that type of policy.
The caps can vary quite a bit from one company to another. For example, some may cap it at $250,000 while others will go up to $400,000. Thus, if you are looking for a higher coverage amount, it doesn't hurt to do your homework and compare what each company offers.
Some folks actually have no medical problems or minimal ones and still have trouble getting life insurance with a traditional policy that requires a medical exam. This is simply because of their age. The older you are the harder it is to get a good life insurance policy.
With no medical exam life insurance, even seniors can get life insurance. You'll probably still see smaller death benefits. Plan on something between $10,000-$25,000.
But you can typically purchase a policy all the way up to age 85. At that point in your life, it's unlikely that you'll have dependents and these policies are enough to cover your death expenses at least.
Getting life insurance with a pre-existing condition is often very difficult. You can opt for the guaranteed issue life insurance we talked about earlier. But that is usually an expensive route for small benefits.
However, that's not the only option you have under no exam life insurance policies. But you will have to meet some requirements and there is usually a waiting period.
For example, for internal cancer, you will often have to wait 5 years after your diagnosis to apply for life insurance. Most heart-related issues also have a 5 year waiting period from the time you finish treatment.
Other diseases like type II diabetes and some external cancers have shorter waiting periods. In some cases, you can get coverage in just a year after your diagnosis.
What's the waiting period for? The insurance company wants to see how stable your condition is. With a relatively good chance of living longer, you can qualify for a policy that will offer better benefits at a lower rate.
So all this to say. Even if you can't qualify for a normal life insurance policy, that doesn't mean you don't have options.
You may have dismissed no exam life insurance without further investigation because you assumed it would be too expensive. But there are options. You can get good coverage even with pre-existing conditions or at an advanced age. You just have to do a little comparison shopping.
Another thing to consider is that the cost of no exam life insurance policies can vary greatly. Don't settle on the first company you come across or the first quote you get.
Here's an idea of what to expect. Depending on your situation, some companies will offer a no exam policy at only $1 or $2 more a month than a normal policy. Even in the most extreme cases, the price typically only goes up between 30-40%.
It may not be ideal, but any type of life insurance will give you peace of mind that your passing won't put your family in a financial bind. That's worth a few extra dollars a month.
The underwriting doesn't go away completely with no exam life insurance. However, the process does get a lot simpler.
In some cases, applicants can be approved in only 15 minutes. Depending on the policy, the company may only require a motor vehicle report and prescription report. This is why it can be a quick turnaround.
In other situations, doctors reports may be required. This will lengthen the process, but it's unlikely that it will be as long as the process when buying life insurance that requires a medical exam.
So does all this sound interesting? You may have learned some surprising facts about no exam term life insurance that you didn't realize before.
To get a quote, check out our life insurance quote tool. We can help you compare plans from various companies in Canada. A good life insurance policy may be within your grasp. Find out today!