Should Seniors in Good Health Get Life Insurance With No Medical Exam?

CHICAGO, January 25, 2023 (Newswire.com) - iQuanti: According to LIMRA's 2021 Insurance Barometer Study, over 50% of Americans like the idea of getting a life insurance policy without seeing a doctor or going through a medical exam. This is not just because of poor health. Medical exams can be inconvenient, feel invasive, and slow the process down. 

Many seniors in good health may still opt for a no-exam life insurance policy. This article will explain why seniors in good health might consider skipping the life insurance medical exam and dive into a few no-exam policies to consider.

Why seniors in good health should consider no-exam life insurance

Here are a few reasons for healthy seniors to consider no-exam life insurance:

To get coverage quickly

The medical exam is the longest part of the traditional application process. Scheduling and taking the exam takes time, but it also takes a couple of weeks to process. You can apply for and receive a no-exam policy often in a few days at the maximum. Some insurers can get you a policy offer in 24 hours.

To minimize inconvenience

You have to find time in your week to schedule the medical exam, then either travel to the exam facility or invite the examiner into your home. This can be pretty inconvenient, even if done at home, since you must be at home before the exam to make sure you're there when the examiner arrives.

You find the exam invasive

Regardless of your health, a medical exam can feel invasive or make you nervous if it's not your trusted medical professional. For example, you may not want your blood drawn for the exam, or you may not want to disclose private information about your health. You might also not like inviting a stranger into your home if the medical is performed at home. Getting a no-exam policy eliminates these worries.

Types of policies with no medical exam

Here are some life insurance policy types to consider if you want to skip the life insurance medical exam:

Simplified issue life insurance

Simplified issue life insurance is a type of permanent life policy that skips the medical exam and eliminates some application questions. This can make the application much shorter and easier. As a permanent life insurance policy, simplified issue policies offer lifelong coverage, but the death benefit is small. This also means premiums are typically more affordable. 

This policy comes with a cash value growth component. A portion of each premium you pay goes toward this component, where it grows tax-deferred at a fixed interest rate. Once you accumulate enough money in your cash value, you can withdraw or borrow from it with great loan terms. The insurer pays you the cash value minus surrender charges if you surrender the policy.

Guaranteed issue life insurance

Guaranteed issue life insurance is also a small permanent life policy, offering lifelong coverage, a small death benefit, inexpensive premiums, and cash value. However, the application is even shorter, and approval is guaranteed. That said, you might have a one to two-year lockout period. If you pass away during this lockout period, your insurer might only refund your premiums to your loved ones.

The bottom line

No-exam life insurance isn't just for seniors with health conditions. You might want to look at no-exam policies if you want coverage faster or if you find the medical exam inconvenient or invasive. 

If you decide that a no-exam policy is right for you, there are several policy types to consider. Simplified issue life insurance trims down the questionnaire to shorten the process. It also offers a cash value and low premiums. And if you want guaranteed approval, consider a guaranteed issue life insurance policy. Keep in mind that premiums and death benefits are small, and you must wait through the lockout period. Regardless of policy type, get quotes from several insurers to find the best rates on the coverage you need.