Many people want to get life insurance. It provides financial security in times of sickness and takes care of loved ones left behind. But it is not always easy to get life insurance. In fact, it is such a challenge sometimes that some people are rejected completely. As such, they cannot avail of the benefits even if they can afford to pay. This usually happens to those with chronic illnesses. It can also happen to those with a history of diseases, like cancer or hypertension.
If you belong to these categories, does that mean you can never have life insurance? Fortunately, you still can. With non-medical life insurance, people with even the gravest conditions can qualify. This is because you do not have to do a medical exam to get this type of life insurance. Insurance companies do not pay attention to your medical history. In some cases, they do not even give weight to your current conditions. Thus, you are insurable whatever your condition.
Are you looking for something fast and easy? If so, simplified issue life insurance is worth a try. You can apply for it online and get approval within days. It does not require a medical exam, which makes it convenient. However, it still requires applicants to fill out a questionnaire pertaining to their health. Usually, this is to find out whether the applicant is terminally ill. As long as the applicant can say ‘no’ to all the questions, they should be approved.
You also have the option to get your simple issue life insurance in terms. This means you get coverage for only a duration of time. Ten to twenty-year coverage are the most common options. You can then renew if you want to extend your coverage. The downside is your premium will change once you renew to account for your age.
Guaranteed issue life insurance is for those who already experienced rejection by insurers. This is for the most “un-insurable” people because you can get coverage, no questions asked. You do not need a medical exam or declare your health records. You do not even have to fill out a health questionnaire. All you need to do is fill up the form online, and that’s that. It is also for life, which means you need not renew every few years. An added advantage to that is your premium will never change. Neither will your coverage.
On the other hand, there are many stipulations for guaranteed life insurance. Like simplified issue life insurance, there is a cap on your coverage. You also cannot make a claim in the first two years. As such, if something happens in that time, your coverage is pretty useless.
Non-medical life insurance is quick and easy. Unfortunately, they do not always come cheap. Non-medical life insurance costs more than a fully-underwritten policy. This is because insurers are taking a risk when they insure you. They are betting on the hope that you have good health and will not make a claim too soon or too many times. As such, they offer a general rate based on age group. The age group determines the statistical probability of you making a claim. So the older you get, the more expensive it can be.
In comparison, a fully-underwritten policy has lower premiums. This is because the insurers can assess the real risk. If you can prove that you are healthy, then you are less likely to make a claim. And if you are unlikely to make a claim, then insuring you will not be costly for them. In the end, non-medical life insurance is not the cheap option. However, if you are high risk or simply have no time, it is a great alternative.
Benefits and Exemptions
Non-medical insurance coverage varies from company to company. In general, policies go from $5000-$25000 for guaranteed life insurance. Meanwhile, coverage can go as high as $500000 for simplified issue life insurance. They all usually come with a tax-free benefit for a beneficiary of your choice. For guaranteed life, this benefit can sometimes multiply by five times in the event of an accidental death. Other benefits include a living benefit, which is a 50% cash advance in case you are diagnosed as terminally ill. Premiums do not increase for whole-life coverage as well.
There are also exemptions for non-medical life insurance. For instance, you cannot make a claim if the cause of death is suicide. In the case of guaranteed life insurance, you also cannot make a claim in the first two years if the cause of death is medical reasons. Again, different insurers have their own list of benefits and exemptions. It is best to shop around and find the best fit for yourself.
Non-medical life insurance is a fast and easy way to get extra financial security for the loved ones you leave behind. You can apply for it online in minutes, and get approval soon after that. It does not require a medical test, which makes it very convenient. It is ideal for people who already dealt with rejection for other insurers. Non-medical life insurance is also great for people who are just too busy. It comes in two types: simplified issue and guaranteed. While neither requires a medical exam, guaranteed issue is easier to get. This is because simple issue insurance requires applicants to answer a health questionnaire. If they cannot answer ‘no’ to all the questions, they may still be turned away.
In the end, despite its ease, non-medical life insurance can be expensive. The insurers are banking on you not making a claim, which puts them at higher risk. To make up for this risk, they charge higher premiums. Despite the cost though, it can still be a good deal. The key is to shop around and compare quotes to find the coverage that suits you best.