Many seniors think that it’s too late for them to buy life insurance, but that’s not the case. While it may be harder to get a traditional life insurance policy, there are many no exam life insurance policies designed specifically for seniors. No exam policies allow you to skip the medical exam and still get coverage. Sometimes, the coverage is limited and the monthly premiums are high. But for many, the available coverage is enough and the premiums are affordable. To find out how much you can expect to pay for a no exam policy, get a free quote here.
Types of No Exam Life Insurance Policies for Seniors
There are 3 main types of no exam life insurance policies for seniors. While they all have their own unique selling points, the one thing they have in common is that no exam is required.
Term
Term life insurance can be purchased for a certain amount of time, or term. When the term is over, the coverage is over too. For seniors, term life insurance can make sense in certain situations. If you’re waiting to pay off your mortgage or until your last child graduates from college, you can buy a policy that will last till that specific milestone. After that, you don’t need it anymore.
Typically, the younger you are, the longer term you can get. If you’re 65, you can get a 25-year term, but if you’re 75, expect a 15-year term. Of course, some carriers have age limits so it’s important to check before.
With term life insurance, you need to meet certain health standards in order to be approved. Health complications like hypertension, diabetes, obesity, arthritis, and effects of tobacco use may prevent seniors from getting approved.
Whole
Whole life insurance, as opposed to term, has no expiration date. This is ideal for seniors who want to have a nest egg to pass on to their loved ones. While traditional whole life insurance accumulates a cash value, no exam life insurance is different. Whole no exam life insurance, often called guaranteed issue, is designed for seniors who would not be approved for any other type of insurance. Coverage goes up to $25,000 or $50,000 and monthly premiums tend to be very high. The good news is that approval is guaranteed and no medical exam is required, which makes it an ideal policy for seniors.
Final Expense
Final expense insurance is another type of insurance that’s specifically designed for seniors. Unlike other types of life insurance, in which the beneficiaries can use the death benefit however they want, the death benefit from final expense life insurance is designated to cover the policyholder’s final expenses. This can include funeral and burial costs, and any other medical costs that might be incurred toward the end. The average funeral can cost between $7000 and $12,000, which means having final expense insurance can save a person’s loved ones from assuming a heavy financial burden. In some cases, adult children purchase this kind of insurance for their aging parents.
Final expense coverage can range between $25,000 to $100,000 and policies can be issued for applicants up to 90 years old. Final expense is a type of whole life insurance, which means there is no expiration date. Approval can often be instant after the applicant fills out a short application.
Benefits of No Exam Life Insurance
There are many benefits to buying no exam life insurance. As the name implies, the main benefit is that you get to skip the medical exam. Traditional life insurance policies require applicants to undergo a medical exam as part of the application process. The exam usually takes a half-hour and includes answering various questions about your health, taking your blood pressure, a blood test, and providing a urine sample.
Many people feel uncomfortable telling a virtual stranger about their health conditions and prefer to skip the exam altogether. Others are scared of needles and can’t bear the thought of a blood test. And still there are those who are so busy that they don’t have time to stop everything and sit for a half-hour. Whatever the reason, skipping the medical exam is considered a big benefit of this type of insurance.
Another benefit is that approval takes much quicker than that of traditional life insurance. Traditional policies take between 4-8 weeks to return an answer to the applicant. This is due to the thorough underwriting process, during which underwriters pore over every health detail and assess how much of a risk the applicant poses to the insurer.
With no exam life insurance, approval can be immediate or take a few weeks. It depends on the policy. Whole and final expense usually grant immediate approval, while term no exam life insurance can take a few days or maximum a few weeks. The reason is similar to that listed above — whole and final expense don’t include any underwriting, but term no exam insurance does. However, these policies are not fully medically underwritten since there is no medical exam, which means the process takes much quicker.
