Why Life Insurance Is More Expensive Over 50
Most life insurance companies charge higher monthly premiums as you age. There are several reasons for this, but most of the reasons center around the fact that the typical person experiences more health problems once they reach 50. In fact, approximately 75 percent of Americans over the age of 50 are taking one or more prescription drugs regularly.
If you have an existing health problem, qualifying for life insurance may be challenging depending on the severity of the condition. And if you have moderate or poor health, you may be considered a higher risk to insurance providers. To offset this added risk, insurance companies charge higher premiums to ensure they have accumulated enough funds to pay the death benefit if the insured party passes away early.
Tobacco use is another common reason for higher premiums. If youre over 50 and use or have used cigarettes or chewing tobacco, you can expect a higher insurance premium. Smokers are more likely than nonsmokers to develop heart disease, have a stroke, or develop lung cancer. Because of these added health risks, tobacco users pay higher rates.
How Much Non Med Coverage Should I Get
Nationwide, the average American purchases a $475,000 no medical exam life insurance policy.
However, It’s essential to understand how much life insurance you will need to take care of your family and your final expenses.
And get this, we created a nifty calculator you can use here to get a better idea of how much coverage you may need..
Your Coverage Through Work Isn’t Enough
For the first time in history, more Americans have life insurance through work than through an individual plan , according to a 2016 LIMRA study. 2 However, the may not be enough.
Companies typically offer a coverage amount that’s one to three times 3 the amount of your salary. So, if you make $50,000, your coverage amount might fall between $50,000 and $150,000.
In the event of your passing, that money would likely first be used to help cover immediate expenses, such as outstanding medical bills and funeral costs. After that, the remainder might be used to help pay for ongoing bills including groceries, car payments, or mortgage payments, for example.
When all is said and done, your loved ones could easily have used up the money in a matter of a few years, which is problematic if you have a child or retired spouse that was dependent on your income for the long term.
Additionally, if your company opts to drop the group plan or you change jobs, your life insurance coverage might be gone, too.
A no-medical exam life insurance policy can help to supplement the coverage you receive from work â and offer greater permanency. So even as you age, your health status changes or you switch jobs, your coverage remains the same.
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No Medical Exam Considerations
Some life insurance companies offer policies that dont require applicants to undergo a medical exam. This can be important for those over 50 because this is typically the age when medical issues begin to arise.
When looking for this type of policy, look for policies that are simplified issue or offer a guaranteed approval.
When buying a simplified issue policy, you will have to answer a few medical questions on the application form, but you wont have to take a medical exam. A good example of a simplified life insurance policy is final expense insurance.
Simplified Issue Whole Life Insurance
helps you fast-track the approval process. This can be a good option if you are looking for basic coverage and have relatively good health. While you wont need to take an exam, you may have to fill out a health survey and submit a medical history. This type of no exam insurance may not come with the cash value opportunities of other whole life policies, so be sure to ask your agent what your options are.
With guaranteed issue insurance, you dont have to share medical history or deal with a life insurance medical exam, and you cant be turned down based on your health. Once youve bought your policy, its yours for as long as you pay your premiums, even if your health gets worse. While premiums tend to be higher and coverage amounts are lower than other policies, guaranteed issue is often the best insurance option for people who may not qualify for other types of coverage.
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What Are The Pros And Cons Of Guaranteed Policies With No Exam
Buying guaranteed life insurance policies with no exam has both pros and cons. Some benefits include quick approvals, no medical history consideration and a non-invasive application process. Some drawbacks of buying life insurance with no medical exam include higher rates, lower coverage amounts and fewer opportunities for customization.
Why Do You Need Life Insurance
Life insurance helps you plan ahead and provides long-term financial security for your family when they would need it most. You can’t put a dollar amount on your loved ones, but a term life insurance policy can help ensure their future is protected. Determine how much coverage you need and how long it’s needed, and the GEICO Insurance Agency, LLC and its partners can provide an affordable life insurance policy that is the perfect fit for you and your family. Get a life insurance quote online or call us at and get the satisfaction of knowing your loved ones are protected.
Best For Senior Applicants: Aarp
AARP caters to senior clients for insurance and many other financial products. Older adults between 50 and 74 may qualify as long as they are AARP members. Term policies are available with limits up to $150,000 in most states. Montana and New York residents may be eligible for up to $100,000. Whole life policy limits max out at $25,000. Whole life policies can be issued without any health exams or medical questions. The term policies, on the other hand, may ask some health questions.
- Health questions: For term life policies, but not whole
- Coverage limits: Up to $150,000
- Unique feature: No medical exam policy caters to older adults
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What Is Term Life Insurance
Term life insurance covers a specific time period and provides financial help to the beneficiary. Often this money is used to replace income that’s lost due to the death of the insured. The benefit can help pay bills, future expenses, and even burial costs. A term life insurance policy may be eligible for a No-Med Exam, which is an option that asks a detailed questionnaire instead of requiring a medical exam.
Group Life Insurance Plans
Life insurance you can get from your employer is called group life insurance. The rates are set for the group, and the employer pays most of the cost. It will be one to two times your annual salary for basic coverage. You do not need a life insurance medical exam if you want coverage.
Your employer might also allow you to buy additional insurance not included in your health insurance. This upsell is called supplemental life insurance. You might need to provide medical information or go through a medical exam before getting coverage. Insurance rates are based on the group, so it may be cheaper to buy an outside policy if you are young and healthy.
No Exam Term Life Insurance Companies
We have compiled a shortlist of companies offering cheap term life insurance without completing a physical exam.
How Does No Physical Life Insurance Work
No exam life insurance works like any traditional term policy. You choose your coverage amount , your term length and pay a set monthly premium.
With a term plan, if you pass away before your policy ends the insurance company will pay out the full death benefit to your beneficiary. With a whole life policy, the death benefit will pay out whenever you pass away because the policy doesn’t end.
Below we cover the different options a bit more:
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Best No Medical Exam Life Insurance Policies Of 2022
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.
In the market for life insurance, but want to skip the medical exam for one reason or another? Here are the best no medical exam policies from highly rated U.S. insurers. Some of these policies guarantee acceptance regardless of your health, while others require you to answer a few health questions to qualify for coverage. But no matter the situation, they never require a medical exam.
Why you can trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure the content on our site is accurate and fair, so you can make financial decisions with confidence and choose the products that work best for you. Here is a list of our partners and heres how we make money.
What Is Life Insurance
Life insurance is a service agreement between you and an insurance company where you pay premiums in exchange for a lump sum payment after your death, known as a death benefit. Most families depend on cash for daily living and survival. If you die, your family may lose a source of income, so life insurance acts as a form of financial security.
Your family can use your life insurance benefits to pay for living expenses or health costs after your death, which include:
- Rent or mortgage payments
- Income replacement
- Funeral expenses
There are limits to your life insurance, though. If you want a higher insurance payout, you often pay higher premiums. Some companies dont offer insurance coverage or have limited coverage for certain conditions or habits, including cancer, diabetes, heart disease, or smoking.
No-exam life insurance can be helpful and quicker, as you dont have to do blood tests, lab tests or checkups to qualify for insurance, just answer some questions. Be aware that if the company finds out you lied on that questionnaire, say, by claiming that youre not a smoker, your insurance will likely be voided. Further, these policies are generally more expensive than traditional life insurance.
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Should I Wait To Buy Life Insurance
Not married? Kids not in your immediate future? You may think you dont need life insurance yet, but it may be to your advantage to buy it today. Generally, the younger and healthier you are when you initially purchase life insurance, the less expensive it is, and the easier it is to qualify for it. Each year that you wait to purchase life insurance, your rates will most likely increase. And if you develop any health issues in the future, it may impact your ability to get life insurance regardless of your age.
The Pros And Cons Of No Exam Life Insurance
Life insurance without a medical exam is a hassle-free way to get coverage quickly. There’s no waiting period, the application is easy to fill out, and it may be easier to qualify for. It could provide you with an option for getting coverage that you otherwise wouldn’t be able to obtain because you have pre-existing health conditions or work in a risky occupation . However, choosing a policy that doesn’t require a medical exam may significantly increase your premium and limit your coverage.
Getting life insurance without a medical exam is hassle-free but generally more expensive.
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The Best Cheap Life Insurance Without A Medical Exam
Now that you know some of the best ways to get cheap life insurance without a medical exam, you may wonder which policy is the best for you. Here are a few things to keep in mind:
- The amount of coverage you need is one of the most important factors to consider when choosing a life insurance policy. Make sure you choose a policy to give your loved ones the financial security they need during your death.
- Your budget: It is essential to find a policy that fits your budget. Life insurance can be expensive, but plenty of affordable options exist.
- Your health: If you are in good health, you may be able to get a policy with no medical exam. However, if you have some health issues, you may need to get a policy that requires a medical exam.
We recommend Ethos Life Insurance. Ethos offers some of the best rates for life insurance without a medical exam. They also have an excellent online life insurance calculator that can help you determine how much coverage you need.
What Are The Best No Medical Exam Life Insurance Policies
Where can I find life insurance with no medical exam required? The best no-exam life insurance policies are the ones that offer the coverage amounts you need at a price you can afford. You should also look for a policy with a reputable insurance company.
Some of the best no-exam life insurance policies that offer a high death benefit include:
There are other similar companies, including Sproutt and Haven Life.
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Best For Financial Stability: Guardian
- AM Best Rating:AM Best is a credit rating agency that assigns insurance companies a letter grade from âA++â to âD.â A companyâs grade indicates its ability to pay its claims and honor its financial obligations.A++
- Accepts Credit Cards:No
No-med-exam life insurance with up to $3 million in coverage
Highest financial stability rating
Very few customer complaints relative to its size
Policies are eligible for dividends
Limited website information
No online application
Guardian offers up to $3 million in coverage without a medical exam to applicants up to 50 years old. Though not as substantial a sum as either Penn Mutual or Nationwide, itâs sufficient for many applicants. But aside from its no-medical-exam coverage, Guardian is a standout company. For starters, itâs the only one on this list to have secured an A++ rating from AM Best for financial strength. An A++ is the ratings agencyâs highest grade and indicates that Guardian has a âsuperiorâ ability to pay its claims. In fact, only nine of the 91 insurers we reviewed were rated so highly.
How Does The No
Similar to a standard application process, youll talk to an agent over the phone first.
Next, youll complete a health interview.
After the interview, the insurance company will verify your health information and your identity through the MIB the Medical Information Bureau, a resource used by life insurance companies to prevent insurance fraud its similar to a credit report, but for life insurance. This process can take a couple of days, or you might get an application decision at the end of your medical interview phone call.
Once you have your application decision and final rate, you can accept and sign your policy documents, and your coverage will go into effect.
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How To Get Life Insurance No Medical Exam Required
CEO, The Annuity Expert
Are you looking for life insurance but dont want to go through the hassle of a medical exam? Youre not alone. Many people are looking for an easier way to get life insurance, and thats where no medical exam life insurance comes in. This guide will discuss what no exam life insurance is, how it works, and some of the pros and cons of using it. We will also provide you with a list of the best companies with solid financial strength that offer this type of policy for your life insurance needs.
What Happens If My No
If your no-medical-exam application is declined at first, theres no need to worry. The insurance company may just request an in-person medical exam, which is free, and is much like an annual physical with a primary care doctor. Its common for people who have multiple health conditions or other factors in their application to need to take a medical exam.
Getting declined for a no-medical-exam option doesnt necessarily mean your rate will be more expensive either the insurance company just needs more information to assess your risk.
One of the benefits to working with an independent broker is that they can guide you to apply for the product thats going to be the best fit for you. They can help you seamlessly transfer your information to a new application if need be.
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