No-Exam Life Insurance Basics
No exam life insurance is a type of insurance that is often made available to older individuals or people who suffer from conditions that would prevent them from getting traditional Term or Whole Life Insurance. If you're from the ages of 50-75, you may not qualify for many life insurance policies - especially if you have a history of smoking or chronic health conditions. No exam life insurance gives you some of the benefits of life insurance (albeit with lower benefits - generally just enough to cover funeral expenses) without the stringent medical exam requirements or pre-existing exclusions of other life insurance policies.
Benefits and Downsides of No-exam Life Coverage
The great benefit of no-exam life insurance is its easy application procedure, quick approval, and low cost. The downsides of no-exam life plans are its low levels of coverage and often confusing contractual obligations. Even though a no-exam policy may look to be the perfect deal, some healthy individuals may be better served by a Term Life Insurance policy of modest proportions. For 50,000 dollars of coverage, a healthy 50-year-old male that passes a medical exam could purchase a Term Life Insurance policy for 1/4th the cost of a no-exam policy.
Overall, it's your choice and you need to weigh your own options. If you feel that your exam will yield unsatisfactory results and will likely bar you from a life insurance plan (or if you've been denied coverage before), then chances are that your best option will be a no-exam life insurance policy. But if you feel healthy and young, have never smoked or engaged in risky behavior, and you could pass an exam with flying colors, then you should strongly consider getting a traditional Whole or Term Life Insurance Policy at a fraction of the cost.