How To Get Senior Life Insurance With No Waiting Period
Typical guaranteed life insurance policies have a waiting period. It can be as long as 2 years. This means if you die within those 2 years, your beneficiaries receive little or no benefits. If they receive anything, it is usually the equivalent of the premiums you paid thus far plus a small percentage .
Why is this waiting period?
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Insurance companies have a waiting period to keep the terminally ill and who will pass away soon from purchasing the policy.
Insurance companies take a risk insuring anyone the waiting period protects them from financial distress.
No Medical Exam Whole Life Insurance
No medical exam whole life insurance is typically used as a form of final expense insurance, as coverage is lifelong and death benefits are generally limited to a maximum of $25,000 or $50,000. This means your beneficiaries may receive a large enough payout to cover your funeral, other end-of-life costs and potentially a small loan. However, its not a large enough death benefit to cover a mortgage or provide income replacement for an extended period of time.
If you want final expense insurance and are unable to qualify for traditional coverage, simplified issue whole life insurance will be less expensive than a guaranteed acceptance policy.
Alternatives To Guaranteed Acceptance No Waiting Period Life Insurance
The good news is, there are alternatives. Even if youre 50-years old or older, you can get standard life insurance if youre in good health. If you can pass the underwriting process, you may get lower-cost life insurance and instant death benefits.
Comparing your options is crucial, so you dont overpay for life insurance. Use our insurance comparison tool to start.
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Alternatives To Life Insurance With No Questions About Health
Guaranteed-issue life insurance is a good option ONLY if you do not qualify for other types of life insurance.
Its best if you research life insurance with no medical exams required. No physical life insurance means you dont have to take an exam, but you do have to answer health questions.
For example, other types of insurance do not require a physical exam but will have some health questions.
- Simplified issued life insurance
- Annuities with Enhanced Death Benefits
Instant Approval Term Life Insurance
Instant-approval term life insurance is another term life insurance that does not require a medical exam. These policies differ from simplified-issue life insurance in that the medical questionnaire goes into much greater depth. Youll typically need to answer questions about your lifestyle, employment, driving history, and more in addition to medical questions.
Life insurance companies then use algorithms to assess your risk, decide whether to approve you for a policy, and set your monthly premium. Approval isnt guaranteed, and, depending on your history, you may be asked to take a medical exam in order to be approved.
The advantage of instant-approval term life insurance policies is that they typically offer death benefits and premiums that are competitive with traditional term life policies. In addition, instant-approval term life providers typically offer online applications.
What Is Final Expense Insurance
Final expense insurance, also known as burial insurance, is a type of life insurancethat is specifically designed to cover outstanding expenses and funeral costs after aloved one passes away. Unlike pre-paid funeral plans, final expense insurance can be usedby the beneficiary you designate as and where needed rather than being limited to specificfuneral services and providers. With the cost of an average funeral running into thethousands, a final expense policy can provide much needed protection from not only burialexpenses, but also any remaining medical costs, potential legal costs as well as otheroutlays.
Final expense policies will have a lower face value than most traditional term orwhole life policies as they are intended for a specific purpose of covering those finalcosts rather than providing comprehensive support for surviving family members. These typeof policies generally dont require a medical exam, but premiums will be higher the olderyou are, and some benefit payouts may be limited during the first few years of coverage forthose with significant health issues.
Best Age For Buying Guaranteed Acceptance Insurance
Anyone 45 80 is eligible for guaranteed life insurance coverage. However, age requirements vary by company.
Other life policies will likely be better if you are younger than 45. Final expense insurance is available for those who qualify up to 89 years old. Guaranteed acceptance plans are not available to seniors over 85.
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Life Insurance With No Health Questions Has Fast Approval
Since you are purchasing life insurance with no questions about your health, expect the application process to be lightning-fast.
Here is the guaranteed issue life insurance application process:
Your policy will be in force after you make your first premium payment. The entire process takes minutes.
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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Should You Get Life Insurance For Your Children
Whether you are just starting a family, or already have children, there are several important decisions that you may be thinking about.
Whether you are just starting a family, or already have children, there are several important decisions that you may be thinking about. Can your home accommodate growing children? Do you make enough money to support your children? What schools would you like them to go to and how will you be able to afford their future education?
These are just a few of the things that parents consider about their child or children. One thing that you may not think about immediately however, is life insurance for your children.
Life insurance is frequently purchased by older adults, or young parents themselves thinking about the well-being of their children should something happen to them. But what you may not realize is that having life insurance for your children can be a great benefit to them for many reasons.
First of all, purchasing a life insurance policy for your child can help protect them should an illness or injury prevent them from getting coverage in the future. Young, healthy children arent typically seen as needing life insurance. However, having that coverage in place could help prevent you and them from future financial burdens should an accident or illness occur.
Many people that buy life insurance for children are actually the grandparents, because older adults especially understand the importance and long-term value of life insurance.
Best No Medical Exam Life Insurance Policies Of 2022
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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.
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What Is No Medical Exam Life Insurance For Seniors
To put it simply, this type of life insurance does not require any kind of a physical examination. Even more, they wont ask health connected questions. Besides the fact that these policies can help save time, they can also help some people get covered who could never pass an ordinary application process for life insurance policies.
These are some typical features of this kind of no-exam life insurance for senior citizens:
- Face values typically range from about $5,000 up to as much as $35,000.
- Insurance companies usually offer these senior life insurance policies to people from about 50 to 80 years old.
- These are whole life policies, so they will stay in force as long as you pay the premiums.
- Over the policys lifetime, the premiums will not go up.
- Over time, these kinds of policies might also start to grow a cash value, so you can consider those an asset.
Pros And Cons Of Guaranteed Issue Life Insurance
Lets start with the obvious benefit of guaranteed acceptance life insurance, virtually anyone can qualify as long as they meet the 2 main requirements of age and domicile.
So, you can get life insurance without health questions or an exam simply by being in the age range and residing in a state where the product is sold.
The benefit is, if you have a pre-existing condition, such as cancer, heart disease or stroke, you can still qualify for life insurance, because these are no health questions life insurance policies.
Which is great, because those health conditions will usually be an automatic decline from most life insurance companies that require you answer health questions or take an exam.
Another advantage of guaranteed issue life insurance is that it is whole life, which build cash value. The cash value can be accessed via withdrawals or loans, so if you are in a financial bind, you have easy access to money.
Cash value can also be used to pay your premiums for a period of time. You can alert the insurance company to your need and they can help you allocate cash value to pay your premium.
A negative of guaranteed issue products is the price. Because there are zero health questions and no medical exam, the insurance company has no idea your current health status.
As a result, the company will charge a higher cost per dollar of coverage than other types of life insurance.
Graded Death Benefit
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What Is The Guaranteed Issue Waiting Period
Guaranteed issue life insurance typically comes with a “graded death benefit,” often referred to as a waiting period, which spans the first few years of the policy.
In general, if you die of natural causes within this time frame, the benefit isn’t paid out. Instead, your beneficiaries receive a percentage of what youve already put into the policy, such as 110% of your paid premiums.
Here comes the loophole: If you die of accidental causes during the waiting period, such as a car accident, the benefit is paid in full.
After the waiting period ends, the benefit is paid out regardless of the cause of death.
In short, during the waiting period youre not covered for natural deaths nor, if your policy includes living benefits, the costs associated with chronic or terminal illnesses.
Without collecting information on your health, insurers dont know if an underlying medical condition will result in a claim as soon as you purchase the policy. The waiting period is imposed to help balance this risk and ranges from one to three years, depending on the policy. Waiting periods, premium payouts and accidental death definitions vary among companies.
During the waiting period, claims may take longer to process while the cause of death is determined.
Permanent Guaranteed Issue Life Insurance
Permanent guaranteed issue insurance can be a good choice for those who probably get a longer life expectancy. The initial premium rate of this policy is high, which can be increased when you renew the policy.
With this policy, you will get guaranteed coverage based on a particular age. Another good thing is the cash value facility of this policy will grow your coverage, and you can also borrow the amount against the cash value if you want.
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Cost Of Guaranteed Issue Life Insurance Vs Whole Life Insurance
Unless severe health conditions make buying other types of policies impossible, you can likely save significant money by buying a more traditional policy. For example, if a 70-year-old female buys a guaranteed issue life insurance policy with $20,000 in coverage, she could pay about $18,700 over 10 years. A $20,000 whole life insurance policy could cost her about $12,400 over 10 years.
|Applicant for $20,000 in coverage||Guaranteed issue life insurance|
What Conditions Can Make You Uninsurable
The following health conditions are generally considered high risk for standard life insurance policies with medical underwriting. While you may be able to get insurance, these conditions can increase the cost and restrict the type and amount of coverage available to you.
Autoimmune conditions, such as lupus or rheumatoid arthritis.
Blood disorders, such as sickle cell anemia.
Cancers, such as breast cancer.
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Another Alternative: Accidental Death Life Insurance
An accidental death life insurance policy is a certain type of life insurance policy that is also no questions asked and no medical exam required. However, it also comes with limits.
Not all cause coverage accidental policies only cover death in the case of an accident. This means that if you die of illness or natural causes your beneficiaries will not be paid out. However, if the death is the result of an accident, you will get full payout.
Has exclusions this isnt always the case but some accidental policies come with exclusions for individuals that participate in high-risk activities, like skydivers or pilots.
Can Life Insurance Companies Refuse To Pay
Although you have guaranteed coverage with this type of policy, there are some instances where the insurer can deny a claim. For instance, some carriers wont pay a claim if the deceased died of suicide. And if you die of natural causes before the waiting period is over, your loved ones wont be paid the full face value of the policy.
Another reason for the non-payment of a claim is that no beneficiary was ever named. Finally, if you stop making payments on the policy, it will lapse and not be in-force anymore.
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Say Hello To Guaranteed Issue
Guaranteed issue life insurance is a life insurance policy that has no medical exam and no questions asked. Sounds like the perfect, no hassle life insurance policy right? Not exactly. There are a few limits that this policy comes with lets break them down in detail.
More expensive all guaranteed issue policies will be more expensive than their simplified issue and traditional issue counterparts when it comes to dollar per dollar value. Why? This is because the life insurance companies are guaranteeing you coverage without having any proof of good health or history of your past. Because of this, they will give you rates assuming the worst. Also, most guaranteed issue products are all permanent policies vs term products which tend to be cheaper due to the expiration.
Caps the guaranteed issue products also come with caps for age groups and coverage amounts. Depending on the company, you will not be able to get more than $10,000 to $25,000 in life insurance coverage with no health questions. This is why these are often considered final expense policies. Because they only provide enough death benefit to cover things associated with death, like funeral costs, hospital bills, etc. The other caps are associated with age because most guaranteed issue life insurance companies will only give you coverage if you are between ages 40 to 70. In rare cases, some companies do earlier or later qualifications.
Guaranteed Issue Life Insurance For Children
Some parents choose to buy guaranteed issue life insurance for their children to help them in the future. For instance, if a child has medical issues, and the parent fears they wont be able to get life insurance as an adult, they may purchase a guaranteed issue life insurance policy for them and continue to pay the premiums throughout their life.
Another reason to buy life insurance for children is to secure the low rates for a child. Premiums for children are much lower than adult rates, and buying a 30-year policy will ensure those low rates for years to come.
Finally, if you purchase an insurance policy for your child, it will begin accruing cash benefits that will continue as your child grows.
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Top 5 questions about life insurance
Top 5 questions about life insurance
Term life insurance provides coverage for a specific period of time and then could renew. Permanent life insurance provides coverage for life.
A death benefit is the amount paid to your beneficiary if you die while your life insurance plan is in effect. A living benefit is the amount paid to you when you meet certain conditions. For example, you can receive part of your CoverMe Life Insurance death benefit while you are alive if you are diagnosed with a terminal illness with less than 12 months to live.
There are two main ways to help your family pay off your mortgage if you pass away: mortgage life insurance and term life insurance.
Mortgage life insurance typically pays the death benefit to the lender. The coverage amount declines as your mortgage balance decreases, but your premiums stay the same. If you switch mortgage providers, you generally have to reapply for mortgage life insurance.
Term life insurance pays the death benefit to your beneficiary, not the lender, and your beneficiary can decide how to spend the money. The coverage amount and your premiums stay the same during your plan’s term. You own your coverage so you can keep it if you switch mortgage providers.
Term life insurance premiums stay the same during your plan’s term. They increase when your plan renews at the end of a term.