Adults today are juggling more than they ever have. Between taking care of young children and aging parents, managing social lives and work, it’s understandable why some things get pushed off continuously. Buying life insurance tends to be one of those things that gets pushed off, mainly because the application process is so intensive. To apply for life insurance, you need to fill out a lengthy application, schedule a medical exam, undergo said medical exam, and then wait 4-8 weeks to get your answer. Who has time for all that? Read about No Exam Term Life Insurance.
Fortunately, there’s another option. No exam life insurance is a type of policy that’s becoming more and more popular due to its simple convenience. The application process can be done entirely online or over the phone. No waiting to schedule a medical exam, no need to undergo a medical exam. Approval can take up to a week but in most cases happens within 48 hours.
No Exam Term Life Insurance Facts
No exam term life insurance is like any other term policy — you purchase it for a specific number of years, or term. Many people choose the length of their term to correspond to a specific milestone. For college students, it can be when they anticipate to pay off their student loans (see below). If it will take them 14 years to pay off the loan, they should get a term policy for 15 years (terms come in increments of 5). Other milestones can be finishing your mortgage payments, when your children graduate college, or retirement.
Coverage for no exam term and traditional term policies is also fairly similar. You can get $500,000 or even $1 million, which is usually sufficient for most people’s needs.
As for rates, the younger and healthier you are, the better your rates are likely to be. This is true for both no exam and traditional policies. When it comes to comparing the costs of both, you can do it easily online with this free quote generator.
The Application Process
Applying for no exam term life insurance can be done entirely online. You can sign your application with an electronic signature, so you don’t need to print or mail in paper forms. Once you submit your application, the underwriting process is streamlined. Instead of reviewing your medical exam (which you didn’t have), the insurer automatically pulls reports from third-party sources, including the DMV, MIB, drug history and credit records. The data is reviewed and you can find out immediately whether you qualify or not.
Benefits of No Exam Term Life Insurance
If you’re debating whether no exam life insurance is right for you, here are 3 reasons that may push you toward applying.
When you apply for no exam term life insurance, you can get approval within 48 hours. This appeals to people on so many levels. First, there’s the busyness factor. People have so many responsibilities today that being able to check one thing off your to-do list can be a great relief. Then there are people who have an urgent need to secure life insurance quickly. These reasons can include:
- To secure an SBA loan
- Traveling for business or pleasure
- Court order for a divorce settlement
Did we say there’s no exam? Being able to skip the medical exam is a major benefit of no exam term life insurance. There are plenty of reasons to want to skip a medical exam. These include:
- You don’t want to answer personal medical questions
- Checkups make you nervous
- You’re afraid of needles
- You don’t want to fast 8 hours before the blood test
- You don’t have time for an exam
Loan Coverage in No Exam Term Life Insurance
Roughly 70% of college students graduate with debt, and parents are often cosigners of their loans. Students and/or their parents who want to protect themselves in case of early death often turn to no exam term life insurance. This kind of policy can provide coverage for the amount of time it will take the student to repay the loan. Moreover, since younger people are often in good health, they are likely to get low rates. Practically, scheduling a medical exam when you’re in school out-of-state can be very difficult. No exam life insurance lets students get around that issue.
Deciding What’s Right For You
Even if the above reasons don’t resonate with you, you might still feel that no exam life insurance is the right choice for you. On the flip side, the above situations might match yours, and you still may feel more comfortable with a traditional term policy. There is no right and wrong answer, only what’s right for you. Take your time, do your homework, and once you’ve decided which type of policy you want, you can start comparing prices from different insurers.