When it comes to planning for the future, life insurance is an important decision that shouldn’t be taken lightly. For those considering life insurance options, one possibility may be no medical exam life insurance — something not everyone knows about. Known as “guaranteed issue” or “simplified issue" policies, they can provide some great benefits but also have potential drawbacks to consider. In this blog post, William Schantz discusses the pros and cons of investing in a no medical exam life insurance policy so you can make an educated choice for your financial needs.
PRO: No Medical Exam Required - One of the major benefits of buying a no-medical-exam life insurance policy is that you don’t have to take a medical exam. According to William Schantz, this can be beneficial for those who are uncomfortable with needles, may not want to give up their privacy, or simply don’t have the time to make an appointment and travel to see a doctor. By skipping the medical exam, you won’t have to wait weeks to find out if you qualify for coverage.
CON: Higher Premiums - The biggest drawback of no-medical-exam life insurance is that it generally costs more than policies that require a medical exam. Insurers charge higher premiums because they assume more risk when providing coverage to individuals without an exam. Plus, no medical policies typically have a lower death benefit than those that require an exam.
PRO: Quick Approval Process - Since policyholders don’t need to take a medical exam, the approval process is generally quick and easy. Most insurers can provide same-day or next-day answers after you fill out their application form. This makes it easier for people who are in urgent need of life insurance coverage to get protection quickly compared to traditional policies.
CON: Limited Underwriting Questions - Another disadvantage of no-medical-exam life insurance is that since there's no medical exam involved, insurers will ask fewer health questions when they evaluate your application. This means that even if you have a pre-existing condition or family health history that may disqualify you from coverage, you could still be approved for a policy. This can be beneficial in some cases, but it can also be dangerous since it means the insurer won't know certain details about your health.
PRO: Easier to Qualify - With no-medical-exam life insurance, it's easier to qualify than with policies that require an exam. The application process often just requires answering some basic questions and providing information such as age, occupation, and lifestyle choices. Some insurers may ask additional questions, but they are usually far less intrusive than those asked during a medical exam.
CON: Lower Death Benefit - No-medical-exam life insurance policies typically offer a lower death benefit than those that require an exam. This is mainly due to the higher risks associated with providing coverage without a medical exam. The difference in coverage, as per William Schantz, can depend on the insurer and policy you choose, so it's important to compare different policies before making a decision.
Overall, no-medical-exam life insurance can be beneficial for people who don't have time or don't want to take a medical exam and need immediate coverage. However, it's important, according to William Schantz, to consider both the pros and cons before deciding if this type of policy is right for you. With its quick approval process and easier qualification criteria, no-medical-exam life insurance may be worth considering if you need life insurance but don't want to go through the hassle of a medical exam.
