No Health Questions Life Insurance

How Medical Conditions Affect The Cost Of Life Insurance

Unsurprisingly, age and health are the two most important factors life insurance companies use to determine whether a person is insurable, and at what cost. A younger, more physically fit person is less likely to die in a given time frame be it months, years or decades compared to an older, less healthy person. Thats not just common sense: Its a fact proven by actuarial science, the discipline that applies mathematical and statistical methods to assess risk in insurance and other industries.

Of course, other factors such as lifestyle and gender also affect your rates. Risky habits and dangerous hobbies can make life insurance more costly. Conversely, women tend to live longer, so they enjoy generally lower rates.

These classifications vary somewhat by insurer, but its important to remember that no life insurance company expects every prospective customer be in peak health. Various types of policies are issued every day for people with health conditions. Some of the more common examples include:

This is by no means an exhaustive list of all the medical conditions that can affect your ability to get life insurance, so talk with a financial representative if you have questions about your health. You may even be surprised to learn that your specific condition isnt much of a barrier at all. Dont delay: On average, life insurance rates for people with pre-existing conditions increase by 8-10 percent per year .

If You Want: More Affordable Life Insurance Coverage

Consider: Medically underwritten term life insurance

Heres why: If you are price-sensitive, then you may want to consider medically underwritten term life insurance. This life insurance policy will most likely be your most affordable option.

Historically, most medically underwritten policies require a medical exam. However, thanks to recent underwriting innovation in the life insurance industry, it may not be required for qualified applicants to take a medical exam. Haven Life offers the InstantTerm process in which some applicants ages 1859 seeking a $1 million death benefit or less might meet the criteria that allows them to finalize coverage without a medical exam, based on the information they provided during the application process.

You can complete an application online to find out if you qualify to skip the exam.

Whether you qualify for InstantTerm or end up taking the medical exam, medically underwritten coverage will generally provide you with a wide range of coverage options and better pricing than youd get from a no-exam life insurance policy.

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.

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Do I Really Need Life Insurance

A simple way to answer this is by asking: Do I have anyone dependent on my salary to sustain their standard of living? In other words, if you were to pass, would those still alive have issues covering the cost of your burial? Covering rent or mortgage payments and other bills? What about any remaining medical costs? Would they have enough money to cover those and still maintain their normal life? If the answer to any of these is No, they wouldnt, then you should consider what life insurance options work best for you and your needs.

Best Online Resources: Haven Life

Haven Life offers term policies for healthy adults with limits as high as $3 million. For adults who prefer to avoid a medical exam, the limit is $500,000. The Haven Simple no medical exam policy is available in all states except California, Delaware, South Dakota, North Dakota, and New York. All applications are filed online. Accelerated death benefits are available with this policy if you become disabled, and riders can be added to eliminate future payment obligations if you become disabled.

• Health questions: Yes
• Coverage limits: Up to $500,000
• Unique feature: Accelerated death benefits available with paperless processing

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Best For Guaranteed Acceptance: Mutual Of Omaha

Mutual of Omaha has high financial stability and customer satisfaction ratings across different types of insurance. Guaranteed life policies are available for adults between the ages of 45 and 85. In New York state, the age range is 50-75. Policies can be as small as $2,000 in most states and as large as $25,000 with no health questions or medical exams.

Mutual of Omaha’s no medical exam policies have a graded death benefit. If you die within two years of the policy start date, the company will not pay the full policy. Instead, it delivers 110% of the premiums paid. The Mutual of Omaha website boasts same-day payouts on most policies. Policies for children are also available.

• Health questions: No
• Unique feature: Company website lists same-day payment on most claims

Types Of No Medical Exam Life Insurance

The following types of no-hassle life insurance without a medical exam allow you to apply for coverage quickly:

• Simplified issue life insurance: Best if you’re young and in good health but want life insurance with no waiting period, this type of policy allows you to skip the medical exam if you’re willing to answer health questions and share your medical and pharmaceutical records. Your premium will be more expensive than a typical life insurance policy, but coverage will be available for longer than with a short-term policy.
• Guaranteed issue life insurance: If you have health issues that have caused life insurers to reject your applications, guaranteed issue life insurance can be a way to get coverage without bringing your health into question at all. You’ll still need to meet age restrictions, and your coverage may be significantly more expensive and limited.
• Employer-sponsored life insurance: If you have access to a group life insurance plan through your employer’s benefits package, it’s likely highly affordable and doesn’t require a medical exam. Coverage will be set at a percentage of or 1-2 times your salary potentially not as limited as guaranteed issue life insurance coverage. Note that these policies may only stay active while you’re still with the employer and typically only offer limited coverage amounts that you may want to supplement with another policy. Learn more about supplemental life insurance policies.

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How Life Insurance Pays The Death Benefit

Companies usually pay the death benefit as a single lump sum, but there are other options. Either you or your beneficiary chooses how the death benefit will be paid. Common options include:

• Interest option. The insurance company keeps the death benefit and pays the interest to your beneficiary at regular intervals.
• Fixed period. The company pays the death benefit at regular intervals, with interest, over a chosen period.
• Life refund. The insurance company pays a set monthly amount to the beneficiary for the rest of his or her life. Under this option, the beneficiary could get more than the policy’s stated death benefit if he or she lives longer than expected.

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.

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No Medical Exam Vs Guaranteed Acceptance Life Insurance

Guaranteed acceptance life insurance is similar to no medical exam coverage in that you don’t need to take a physical or blood and urine tests in order to apply. The main difference is that there are no health questions for guaranteed issue life insurance, so anyone that falls within a particular age range will be accepted. This makes guaranteed issue policies even more costly than no exam insurance, but they’re still a good alternative if you can’t qualify for no medical exam coverage.

Every insurer has its own standards and questions for no exam life insurance applicants. However, you should probably consider a guaranteed acceptance policy if:

• Youre on dialysis
• Youre restricted to a wheelchair or in a nursing home
• Youve been diagnosed with a medical condition, such as diabetes, in the past 2 years
• You have HIV or kidney disease

Guaranteed issue policies are only available for whole life insurance and coverage is typically limited to less than $25,000. Therefore it’s typically intended as final expense insurance, offering a large enough death benefit to cover a funeral and other costs associated with your passing. There are no alternatives for term life insurance without providing some personal information.

Im Only 25 Why Would I Need Lemonades Life Insurance Offering

When youre young, its easy to feel invincible. But life is full of unexpected twists and turns, as well as accidents we can never predict. So even if youre in the prime of life, it can be a good idea to secure a life insurance policy that can help protect your loved ones if youre no longer around.

Locking in a policy when youre young, and in good health, will also help you land more affordable premium ratesand those rates are locked in for the entirety of your policys term.

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Is It True That Some Companies Wont Turn Applicants Down

Its always important to make sure you understand what a company is actually offering when they make these advertisements. Such ads are for “guaranteed issue” policies that ask no health history questions. The company knows it is taking a risk because people with bad health could buy their policies. The company balances the risk by charging higher premiums or by limiting the amount of insurance you can buy. The premiums can be almost as much as the insurance! After a few years, you could pay more to the insurance company than it will have to pay to your beneficiary. Such policies may offer only the return of your premiums if you die within the first couple of years after you buy the policy. So once again, it is very important that you understand what is covered and what is not, and how much it will cost you before signing on to any policy.

Guaranteed Acceptance Life Insurance

Guaranteed acceptance life insurance policies are typically more expensive, but can be appealing because health status is not used to determine eligibility. Also known as guaranteed issue or final expense insurance, guaranteed acceptance life insurance policies are often used to cover burial and other end-of-life costs. Guaranteed issue whole life is generally available up to $50,000, but some companies restrict it to lower amounts.

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What Kind Of Life Insurance Does Not Require An Exam

There are a few types of life insurance policies that dont always require a medical exam. Medically underwritten life insurance allows you to skip the exam in some situations. Simplified issue life insurance and guaranteed issue life insurance never require a medical exam. Lets learn more about these types of policies:

Sign Your Policy And Start Paying Premiums

The insurance company will send the finalized policy to you. Its a paper contract that outlines all the terms and conditions of your policy including coverage amount, premiums, method of payment, riders, exclusions, and so on. Read it carefully. When you are satisfied that you understand your policy and agree to the terms, sign two copies and mail one back to the insurer. Keep your copy in a safe place and let your beneficiaries know where it is.

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John Hancock Life Insurance Policies

John Hancock sells both term and permanent life insurance. To get a quote or apply for a policy, youll need to contact an advisor through the site.

Term life insurance. If youre in the market for a temporary policy, John Hancock offers term life insurance lasting 10, 15, 20 or 30 years. You can get $250,000 to $65 million in coverage, and in most cases, youll be asked to take a medical exam.

Permanent life insurance. John Hancock sells universal life insurance, variable universal life insurance and indexed universal life insurance, with coverage ranging from $50,000 to $65 million. These policies last your whole life, and build cash value over time at different interest rates. Once youve accumulated enough cash value, you can begin to borrow against your policy.

What Is A Guaranteed Life Insurance

To qualify for a traditional life insurance policy, a comprehensive medical exam is often a prerequisite. It is nearly impossible to obtain life insurance if you are unhealthy or are suffering from a major illness such as cancer or chronic heart issues. Guaranteed Life insurance, on the other hand, allows you to have coverage regardless of your past or current health problems. It is for those people, who are unable to get a regular life insurance policy and need affordable coverage.

Due to the fact that there are no additional requirements to get approved for guaranteed life insurance policies, the monthly payments or premiums may be higher, but they usually stay the same for the life of the policy. This means that your life insurance policy will never lapse, as long as you pay your monthly premiums in a timely manner. Guaranteed life insurance typically has a limited death benefit in the first two years if you die from natural causes. However, if you die from accidental death, it pays the full death benefit. This type of Life Insurance is also called a Guaranteed Issue. This means that seniors, and younger people with bad health, can obtain approval without a medical exam or medical questions in as fast as 48 hours. How does it work?

Here are the steps mentioned for how guaranteed issue life insurance works in a simplified manner:

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What Is The Contestable Period

Life insurance policies have a two-year contestable period. If you die within this period, the company may review the information you gave on your insurance application. If the company learns you gave wrong information or didnt disclose something, it can deny payment. This can happen even if the wrong information was unrelated to the cause of death or was given by mistake. If a company denies payment, it must return the premiums to your beneficiary.

The company may also investigate the cause of death. During the first two years of a policy, companies usually won’t pay the death benefit if the cause of death is suicide. If the company doesn’t pay the benefit, it must return the premiums to your beneficiary.

Once your policy has been in effect for more than two years, the company must pay the death benefit regardless of the cause of death. Your policy will have a new contestable period if it lapses and you later reinstate it.

Best For Online Application: Haven Life

• 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:Yes

• Term policies are not convertible to whole life

• Low no-med-exam coverage limits

Haven specializes in term policies that are easy to apply for and often issued the same day. The website, quote, and application process are the most intuitive of all providers we reviewed. Plus, the company provides a slew of helpful information to guide you through the process, and offers a live chat feature. If you need quick term coverage without bells and whistles, this is the place to get it.

Healthy applicants up to 55 years old are eligible for same-day coverage for a death benefit up to $500,000 with Haven Life’s Haven Simple product. However, the maximum coverage term available is 20 years, and you can’t convert it to a permanent policy, unlike many other term policies with other providers.

Policies are issued by C.M. Life Insurance Company, which is a subsidiary of MassMutual.

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