Life insurance is something most of us will consider purchasing at some point in our lives. Taking out life insurance ensures that your family and loved ones will be cared for financially in the event of your death, and is a good option for members of families with only one income earner.
However, the process of getting approved for a life insurance policy can be very difficult, especially for older applicants. Many insurers request that applicants undertake a medical examination prior to issuing a policy, and the older you are, the less likely you are to be approved for insurance without an exam. Aside from the obvious costs of attending a doctor’s appointment, having blood drawn, etc., many applicants for life insurance become concerned at the prospect of a medical exam for fear of failure.
The best means of getting life insurance without a medical examination is by applying for minimal cover at a young age. Although it depends on the insurer, some companies will allow those under the age of 40 to take out up to $100,000 worth of cover before requiring a medical. Those over 40 are still able to escape an exam by applying for a lower level of cover – some insurance companies will still allow 50 year olds to take out up to $10,000 worth of cover without sending in the paramedical.
Another way of getting life insurance without an exam is by applying for cover with an insurer that does not require medical examinations. While these insurers still often request medical histories from applicants prior to issuing policies, no-exam life insurance companies will not request medical examinations from applicants under most circumstances. However, the terms and conditions attached to insurance policies issued by no-exam insurance companies often differ greatly to the terms of policies issued by traditional insurers. For example, most no-exam insurers will not pay a benefit should the cause of a death be determined to be as a result of a pre-existing medical condition. However, many traditional insurers will often pay benefits on deaths caused by pre-existing medical conditions, especially if they were identified in a medical examination requested by the insurer prior to issuing the policy. In this way, those cautious of medical exams should be careful before jumping at policies issued by no-exam insurers.
Ultimately, while it is often desired to take out life insurance without a medical examination, doing so can be difficult and has risks attached. Before taking out a life insurance policy with any insurer, it is important to read the insurer’s policy terms and conditions or ‘product disclosure statement’ very carefully and query any terms that may seem unclear directly with the insurance company. Doing this can save a lot of hassle later on should your family need to make a claim against your policy. Life insurance is a serious investment and, while most policyholders would hope that a benefit would not need to be paid for a long time to come, it is important to be prepared for the unexpected.
Author Bio: Anna Peterson works for LifeInsurance.org.uk a UK company that helps people find affordable life insurance.