Most insurance companies require applicants of conventional life insurance policies to fill out a health questionnaire and undergo a medical examination. However, if you are in poor health or simply don’t want to go through the hassle of a medical exam, you can still purchase life insurance.
There are a few life insurance policies that do not require a medical exam. This can be a great option for someone who is in poor health and may not qualify for life insurance through traditional means. There are three main types of life insurance policies that do not require a medical exam: final expense insurance, guaranteed issue life policy and convertible term life policy.
Each of these policies has its own perks and drawbacks, so it’s important to do your research before deciding which one is right for you.
CONVERTIBLE TERM LIFE INSURANCE
Convertible term life insurance is a type of life insurance that can be converted into a whole or universal insurance policy without an additional health screen, before the term is finished.
This may be an appropriate policy for someone who is starting out with life insurance and wants the flexibility to convert their policy in the future, especially in the event of poor health.
When convertible life insurance policyholders convert to a permanent policy, the benefit will remain the same and the premium usually increases. Prior to the conversion, convertible term life insurance policies typically have higher premiums than other types of term life insurance, as there is a built-in cost for the potential change.
FINAL EXPENSE INSURANCE
Final expense insurance is a type of whole life insurance policy that is specifically designed to cover end-of-life expenses, such as funeral costs and outstanding medical bills, though beneficiaries can choose to spend the money as they please. One of the benefits of final expense insurance is that it includes a cash value growth component, which means that the policy will build up cash value over time that can be used to cover other expenses.
Final expense insurance is also referred to as funeral insurance, burial insurance, simplified issue whole life insurance or modified whole life insurance, with a death benefit averaging anywhere between $2,000 and $50,000.
GUARANTEED ISSUE LIFE INSURANCE
Guaranteed issue life insurance is a type of coverage that is guaranteed to be approved, regardless of your health status. This can be a good option for someone who has been denied life insurance in the past due to their health.
However, guaranteed issue life insurance policies typically have much higher premiums than other types of life insurance, so it’s important to weigh the costs and benefits before deciding if this is the right fit for you. Death benefits typically cap at $25,000 for a guaranteed life insurance policy.
Guaranteed issue life insurance does not require a medical exam, health questionnaire or allow insurance companies to review medical records.
Contact a Leliaert Insurance agent today to learn more about life insurance policy options.