Introduction: There is a good option for those that prefer not to have their blood drawn and still get a competitive term life insurance premium rate.
The Difference Between No Medical and Fully Underwritten
ProtectQuote analyzes quotesfor both types of term life insurance policies: no medical exam and fully underwritten.
The advantage of a no medical exam life insurance policy is it can be significantly faster to get approved, and does not require a medical exam. An exam typically consists of a blood draw and urine sample. If you have a clean medical history without any pre-existing conditions, a no medical exam life insurance policy is a great option. Some carriers will refer to this as “simplified issue life insurance” or “guaranteed issue life insurance.”
The two scenarios where a fully underwritten term life insurance policy is a better option is you have any pre-existing conditions, extensive medical history, or require more than $2 million in protection (death beneift).
Optional riders can still be added with a no medical exam policy, such as accelerated death benefit rider.
Top Insurance Carriers That Offer No Medical Exam
– Ethos
– Lincoln Financial
– Brighthouse
What Is Underwriting and Why Should I Care About It?
You’ve evaluated companies and looked at various life insurance policies, and now you’re ready to apply for a coverage. Before the newly issued policy is in your hands, you may be set to go on a lengthy and winding road. This is especially true if you have a serious health problem, which can range from small (e.g., height and weight, blood pressure) to major (e.g., diabetes) (e.g., cancer, heart disease). You must pass the company’s underwriting process in order to get your insurance issued. Carefully select your business: The philosophy of underwriting differs from one company to the next.
How do I start learning about the underwriting process?
To comprehend the underwriting process, keep in mind that insurance medicine is not the same as clinical medicine. The latter is concerned with diagnosis and treatment; your doctor’s goal is to keep you healthy and to get you well again if you become ill. That is what clinical medicine is all about. Insurance medicine, on the other hand, aims to evaluate the level of risk that an insurance company will assume if it provides a policy and to set an appropriate premium to cover that risk. Company A may react to a medical issue differently than Company B. Another carrier’s “standard” risk is another’s rated (i.e., issued at a premium rate greater than the norm). While current life underwriting is a complex procedure with elaborate point rating systems and complex underwriting manuals that differ by business, it is still more art than science. Take the time to talk to your insurance agent about the underwriting process so you know what to expect. Check to see if your advisor has enough experience to get you the best deal from a suitable company. Many agents will hold off on making an offer until the corporation offers one. The agent will only seek bids from other companies at that point, and sometimes only if the client continues. My view is to do it ahead of time in the hopes and expectations that the company with which we begin the process will release a policy. This entails an informal, in-depth discussion of the case with an underwriter ahead of time in order to minimize or eliminate any surprises. In insurance medicine, the underwriter collaborates with the company’s medical director to perform a mortality assessment (i.e., calculating the applicant’s life expectancy using a mortality table), taking into account all relevant factors such as disease or medical problems at the time of application. The underwriter evaluates all relevant data before forming an expert opinion on the applicant’s insurability and the premium to be paid. The quality of care provided by a physician may be given some weight.
What Happens During the Underwriting Process (Medical Exam)?
You’ve chosen the term life insurance carrier with which you’d like to submit an application. Caution: If you haven’t told your advisor about any pre-underwriting concerns, it could come back to bite you. The application must now be completed. Answer each application question as completely, honestly, and precisely as possible. If you have any questions concerning the application, your advisor should be able to assist you with further explanations. The advisor does not have the authority to make or change term life insurance contracts, waive any requirements, or advise you to omit any information that the insurance company may request. Any and all information that may affect the underwriting of your application must be disclosed to the firm in good faith.
What Are Some Pointers for Passing My Life Insurance Medical Exam?
Insurance companies want regular people, not superheroes, so try to relax as much as possible throughout the medical exam life insurance process (paramed). Your medical history, as well as the results of your current checkup, are used to determine underwriting for life insurance coverage. It is best not to eat for eight hours before the exam and to consume very little coffee. If at all feasible, schedule your exam in the morning, when you’ll be more relaxed. Alcohol raises blood pressure for a period of twelve to twenty-four hours. I recommend abstaining from drinking for the 24 hours leading up to the exam. A good night’s sleep the night before the exam is important. If at all possible, provide a urine sample prior to a blood pressure check, as fluid elimination tends to moderately lower blood pressure. If you smoke, we recommend not smoking for at least thirty minutes before the exam. Smoking raises blood pressure by narrowing arterial walls, and salt keeps fluids in the body. For three or four days before the exam, avoid salt or use it sparingly. This has the potential to lower your blood pressure. Provide your comprehensive medical history or significant items to the best of your knowledge. Because the insurance company will almost certainly request reports from doctors and hospitals you’ve seen in the past, make sure the examiner correctly identifies their locations. Do not try to conceal any of your medical history, as this will make it appear worse than it is. Prior to the examination, discuss any prospective issues with your counselor. This could influence your advisor’s advice on which companies to apply to and how to prepare for the underwriting process. Before you apply, the advisor may want to meet with the underwriter informally to discuss your case. This can be advantageous in some instances. Be relaxed and comfortable before the EKG (electrocardiogram) test, which is a graph of the electrical activity of the heart. Avoid caffeine and other stimulants. If you are aware of previous EKG alterations that have been recorded and reviewed, it is very beneficial to bring them to the attention of the examiner as well as your advisor. Although some people’s EKGs appear odd, they are perfectly normal for them. As part of a normal examination about your preliminary insurance application, an employee of a third-party firm (contracted by the company) may call you, your advisers, or acquaintances. This is a standard component of the application procedure. Typically, these inquiries are answered quickly and professionally. If you have any questions, please contact your advisor. In the industry, this is referred to as an inspection report. It will appear as if you have already been asked these questions, and you most likely have. Insurance firms attempt to verify information from several sources.
Conclusion: No medical exam term life insurance is a great option for those with no medical history (no pre-existing conditions), and require $2 million or less in life insurance protection. A life insurance policy can help preserve a family’s income and lifestyle, including their home, their children’s college tuition, and the small things like swim team dues, camping trips, and movie evenings, if life takes an unexpected turn.
