You’ve got life insurance questions, and we’ve got the answers!! Can I get life insurance with a preexisting condition? Yes, you certainly can. You may have more options than you have been led to believe. No exam life insurance can make the process simple and fast to boot.
In this post, we are going to primarily focus on the policies that are most likely to approve you if you may have multiple medical conditions. These policies are all no exam policies meaning no one will come to your home to test you nor will you have to visit the doctor’s office.
Full medical underwritten policies with an exam are going to be the least expensive if you are very healthy or have a complex case as determined by a good independent agent/broker. In some cases they aren’t the solution or may result in poor outcome. For small amounts of whole life insurance, under $50K, a no exam policy is most often your ticket.
Do you just need a smaller amount of whole life insurance (<=$50,000) or have a very serious health condition? If that is the case, you will like this article because it provides the decision making specifics you need to move forward in your quest.
What Does “No Exam” Really Mean Then
The term “no medical exam” just means that no nurse is sent to your home nor is a physical required with your doctor to apply for coverage. This waives the traditional costs to the insurer in favor of a faster electonic process of reaching their decision.
“No exam” does not mean there is not any health history questions however.
What are the purpose of the health history questions?
Without any health history information, the insurance company underwriter cannot evaluate your level of risk to them.
To get life insurance and no medical check, you would apply for guaranteed issue whole life insurance. This type of whole life policy is offered by a few specific carriers. You can use the final expense quoting tool on this page to see those companies available in your state + the pricing. Be sure to select “Poor Health” under the “Health Class” dropdown. This will lock in no health question, no medical check, whole life insurance companies and their rates.
However here is the problem with guaranteed acceptance policies. In addition to a considerably higher cost, you will not have full first day coverage for natural death causes. No insurance company will offer an applicant full, immediate coverage that does not answer a health history questionaire during the application process.
Since the insurance company knows nothing about you as a risk without health questions, they must assume it is high. You can expect a minimum of 2 years before any guaranteed issue policy will pay out monies beyond return of premiums (ROP) plus interest for natural death causes.
Our advice here, don’t try to avoid health history questions. It will work against you, period.
Don’t prejudge your health based on the medications you are taking or assume a negative outcome. This is why you work with an experienced, independent agent or broker. Let them sort out what you can prequalify for. There are life insurance products designed for people with rocky health. If you want the best policy for your dollar, answer the questions after getting guidance from a seasoned life insurance professional. At Maple Valley Insurance Group, give us a few minutes and we can give you your best options.
Remember this key: No medical questions = 2-3 year policy limitations and higher lifetime premiums.
No Exam Life Insurance Policies
There are different types of no exam life insurance on the market. The largest majority of them are based on whole life insurance and the easiest to qualify for.
Life insurance for adults with health problems is most often obtained buy purchasing a no exam whole life insurance policy. You do not have to be in good health to purchase to a very good policy. With that said, we will on only discuss the appropriate whole life insurance products. Not all carriers will offer multiple no exam life insurance products.
The best benefits and pricing will come from a “level or immediate” death benefit policy. If you have a preexisting condition and need life insurance we often turn to insurance companies that offer no exam, level benefit whole life insurance. In some situations where our clients have multiple conditions or recent health events there is also “Graded Benefit” whole life insurance. Now, if your confined to a nursing home, have active internal cancer, on kidney dialysis, needing or had an organ transplant in the couple years, you will require, Guaranteed Issue Life Insurance also known as “Guaranteed Acceptance life insurance.”
The are 3 types of whole life insurance policies requiring no exam. This enables even those people who want life insurance with preexisting conditions some additional leeway in qualifying for coverage.
For some people, a major personal obstacle to obtaining quality life insurance coverage is the paramedical exam that they must satisfy to get a policy issued. Yes, a traditional life insurance policy often does require the applicants to have an exam (paid for by insurer or insurance agency) in their home so that the insurance company can make an assessment of the risk involved in covering the insured.
Why the paramedical exam if you go to the doctor for regular checkups and feel fine?
Well, the insurer has to verify that as of the date you are applying that your health is acceptable to meet their underwriting standards.
In some cases, a medical exam may work against you if you have an unstable medical situation. If however your condition has a history of being well controlled, a paramedical exam may improve your insurance premium. Sometimes the paramedical can aid in approval where a no exam policy might result in a decline.
With that all said…
If you just don’t like the idea of having a medical exam in your home, then no exam life insurance is for you. No exam life insurance with preexisting conditions is much simpler and faster to apply for versus traditional life insurance. This can take weeks to get issued. Getting approved on no exam life insurance can be a matters of minutes versus weeks (traditionally).
With that said, we will now break down the no exam life insurance products I’ve mentioned and explore the pluses and minuses among them.
Simplified Issue Life Insurance
While no exam life insurance includes Simplified Issue life insurance,” Simplified Issue” still requires health history questions from the carrier. In other words there is some medical underwriting for the life insurance product which you are applying. This lowers the cost and provides additional benefits in exchange. Simplified Issue Life Insurance products are generally intended for people 50-85 with preexisting conditions. About 85% of our clientele who apply for these policies are approved.
The Standard Questions Asked When Applying for Simplified Issue Life Insurance
The following are the typical Simplified Issue, Permanent Whole Life Insurance application questions. Yes, just these 14 basic questions. The specific question vary from insurance company to insurance company.
- During the past 12 months, have you been admitted to or confined to a hospital 2 or more times?
- During the past 12 months, have you received a diagnosis which would lead to surgery or admission to a hospital or nursing facility?
- During the past 12 months, have you been confined to a nursing facility or received home health care?
- During the past 24 months, have you had a stroke, heart attack, or any procedure to improve circulation to the heart or brain?
- During the past 24 months, have you had or been recommended to use oxygen for any respiratory disease?
- During the past 24 months, have you received or been recommended to have kidney dialysis?
- During the past 24 months, have you had or been treated (including medications or surgery) for melanoma or internal cancer?
- During the past 24 months, have you had or been treated (including office visits, medications or surgery) for the following:
- Alzheimer’s disease or any neurological disorder?
- Leukemia?
- Liver Disease, renal insufficiency, or kidney failure?
- Irregular heart rhythm or congestive heart failure?
- Alcohol and/or drug abuse?
- Diabetic complications, including diabetic nephropathy, retinopathy, neuropathy, diabetic coma, insulin shock, or uncontrolled blood sugars?
- Chronic obstructive pulmonary disease (COPD)?
If you can give a honest answer of “NO” to each all of these questions without sugarcoating, you qualify for full benefits upon issue and should be accepted.
These sample application questions above are from a small, mutual life insurance company that is fairly particular about who they make offers to. Other insurance carriers have variations of these questions.
Pros/Benefits of Level Benefit, Simplified Issue Life Insurance
- No medical exam
- Obtain coverage quickly without hassles of a traditional exam, doctors records etc.
- Full face amount (death benefit) is available immediately upon policy issue
- Policy design allows for lower death benefit amounts. As little as $3000 to $50,000 or more. Only buy the amount of coverage you need
- Less costly than graded benefit or guaranteed issue life insurance
Cons/Risks
- Higher premiums compared to traditional life insurance products because they allow some health issues. It is higher than other whole life insurance policies per thousand dollars of coverage. Simplified Issue has less requirements due to limited health questions to screen you or the insured individual. Higher risk always equals higher premium.
Graded Benefit Life Insurance
Graded Death Benefit Insurance is a “step down” from Simplified Issue, “Level Benefit” whole life insurance. It does have some limited health questions. Like the simplified issue (level benefit whole life), it is also a no medical exam policy designed to be easy to qualify for.
The Standard Questions Asked When Applying for Graded Benefit Life Insurance
- Within the last twenty four (24) months, have you been receiving kidney dialysis, require daily oxygen use (excluding CPAP), have an implanted defibrillator or received or been advised by a medical professional to get an organ transplant?
- Have you ever been diagnosed with or treated by a medical professional for Alzheimer’s disease or dementia or are currently being treated for memory loss?
- Within the last twenty four months, have you been diagnosed as having, or been prescribed medication by a medical professional or been treated by a medical professional for cancer (excluding Stage A Prostate Cancer, Carcinoma in Situ, Squamous Cell or Basal Cell Carcinoma)?
- Have you ever had or been recommended to have an amputation due to complications from diabetes?
- Are you currently bedridden, confined to a hospital, nursing home, mental care facility, long term care facility, hospice or have you been diagnosed with an end-stage or terminal illness, or been told by a medical professional that you have less than 12 months to live?
- Have you been diagnosed by a medical professional as having the Human Immunodeficiency Virus (HIV), ARC or AIDS?
If you can give a honest answer of “NO” to each all of these questions without sugarcoating, you could qualify for a graded whole life insurance policy.
Pros/Benefits of Graded Benefit Life Insurance
- No medical exam
- Only a few medical questions to qualify
- Obtain coverage in minutes or a few days
- Less costly than guaranteed issue life insurance
- Full coverage upon issue for accidental death
- Accepts many difficult to insure medical conditions
Con’s/Risks
- More expensive than standard “level benefit” simplified issue
- Limited Death benefits are common for the first 2-3 years. This applies to natural death depending upon the insurance company and policy design. The specific “grading” is written into the policy.
Graded Benefit Life Insurance is designed typically for people in or near their senior years who have some very significant health problems. This assessment should be done by an experienced life insurance broker. Don’t make this judgement yourself.
Don’t assume you have to be a senior to apply.
These policies are more commonly designed for applicants age 50-85. There are a few carriers that do offer no exam graded life insurance to people as young as 18.
Why do life insurance companies offer graded plans?
They want your business, however, insurance companies know many people are very harder to insure. If they issue a life insurance policy, they will be liable for whatever terms they have written in the policy. Grading the policy helps them compensate for additional risk they have in addition to a higher cost.
If the insured passes away naturally in the first couple years, the insurance company tapers the death benefit according to how long you have owned the coverage with them. After that limited period ends, typically 2 years, your policy will be full benefits for life.
One the positive side, if death occurs due to an accident, the policy will pay out the full death benefit.
Guaranteed Issue Life Insurance = No Question Life Insurance
Guaranteed issue life insurance is only available in 1 form. That form is based in whole life insurance.
Term life insurance is not available with guaranteed issue provisions…with any life insurance company.
Life insurance with no medical check is called, Guaranteed Issue Whole Life Insurance. It is offered by a few insurers. The major difference and unlike level benefit, simplified issue or graded whole life insurance, there are no medical questions to answer.
In other words, if you can can legally consent, are between 40 and 80 and can pay the premium, the insurance company who writes “guaranteed issue” life insurance will approve and issue you whole life insurance protection.
Once again, the insured must be able to legally consent to being insured. Power of attorney will not qualify those who have Alzheimer’s or Dementia. They must be able to handle application on their own.
Since the insurer will accept people regardless of health or other high risk classification you can expect this to be the most expensive type of life insurance.
And it is!!
This is full blown high risk life insurance, period. This is the most expensive and limited type of life insurance. The insurance company is taking a very large risk here. They do not “know” much about their policy owner. This is high risk to an insurance carrier.
Sadly, most consumers don’t understand how “guaranteed acceptance” costs them and their loved ones dearly especially if they pass away in the first couple of years. Often it is purchased because they assume medications or a couple medical conditions will result in a decline and have not spoken to a experienced life insurance broker.
Here is a truth bomb… I receive regular phone calls from consumers who had friends or family members pass away during the 2 year waiting period of a guaranteed issue policy. Some of these resulted in family pain beyond the financial impact.
Ladies and Gentleman…always work with a professional that can get you the best no exam policy. Let a pro see what you can prequalify for, then make your application decision.
Like the Graded benefit option, understand the limitations written into the policy. A key note: these limitations will apply on death due to natural causes. Specifically, the full death benefit is not available until after the policy has been in force for a given amount of time, usually two or three years. Accident is covered at 100% from day 1.
Pros/Benefits
- No medical exam required
- Permanent, whole life insurance. Premiums and death benefit will never decrease
- No medical questions to answer
- You are guaranteed to be covered by a life insurance policy
Cons/Risks
- “Waiting Period” – if the insured person dies within a specified amount of time (2-3 years dependent upon the insurer), there is no death benefit paid though there is return of all premiums paid compounded by roughly 10% interest depending upon the insurer.
- As a rule, the most expensive life insurance you can buy per thousand
- There is no advantage to this policy over the other forms of whole life insurance
Quick Facts To Think Thru
- Designed to pay for funeral/burial or final expenses which is why the policies are small amounts
- Often offered to those 40-85 years old
- Smaller death benefit amounts (range from $5,000-$30,000) compared to most life insurance policies
- Healthy individuals don’t usually choose guaranteed issue life insurance because there are other less costly options and risks to your loved ones
- Company does not know how healthy you are; that’s why it is more expensive. They are limiting their risk exposure
- Typically a “last resort” life insurance policy if you can’t get insurance elsewhere
No Medical Check Life Insurance
If for personal reasons you do not want to have an insurance company do an electronic medical record check, you can opt to apply for guaranteed issue life insurance. However, no life insurance company will offer you first day, full coverage without health history questioning as part of the application process. There are a few of companies that offer a no medical check, guaranteed issue policy, just remember it will have a 2 year limited benefit period initially and higher premiums to offset the risk the life insurer is taking by not asking you any medical questions and doing a medical check. Use the quoting tool on this page and select “Poor” under “Health Class.” This will lock in only life insurance companies with no health question/no medical check life insurance if you would like to see who they are and their pricing.
Life insurance with no medical check does not work in your favor unless it is the only thing you could be approved for. Please consider our recommendation to find out what you can qualify for before assuming you need no medical check life insurance.
There are a couple insurance companies that don’t check the Medical Information Bureau (MIB) or prescription history reports from Milliman Intelliscript, and can offer 1st day level benefits, however the application would have some health history questions asked by your agent or broker which must be answered with transparency to avoid a conflict with the insurer if you pass away prematurely due to “natural” causes. If you have very rocky health, you still may be able to qualify for a premium policy.
If you are ok with the higher premiums and a limited benefit period during the first 2 years, guaranteed issue life insurance with no medical check is the easiest form of protection to apply for. They don’t call it “guaranteed issue” for no reason. While there a large number of life insurance available with no medical checkup required, no life insurance company will offer first day full coverage without health history questions on the application. Keep this in mind.
Term Life Insurance With No Medical Exam Required
Term life insurance whether it has no medical exam or not is NOT designed for final expense planning. Please don’t ever be confused about this. Inexperienced salespeople, financial entertainers and finance bloggers are famous for spreading misinformation about life insurance. These are typically people who don’t have a life insurance license with the exception of “salespeople.”
Ok, I got my rant out of the way.
No one likes needles do they? Not only is a paramedical exam an inconvenience but there is the nurse knocking on the door that needs to draw blood, send you bathroom with cup, check your blood pressure and more.
Some life insurance consumers just need temporary life insurance. Maybe your paying off a mortgage, a loan, raising a family etc. Term life insurance with no medical exam is a very good solution and much more affordable than a similar size whole life policy. No exam term insurance is a easy and fast process to get coverage in place without out weeks of waiting for approval and coverage. Just remember the major differences between the 2 types of coverage, whole life is designed for the inevitable loss of life whereas term life is for the “what-ifs.”
Level Premium term life insurance is going to be harder to qualify for. If you have significant health issues, no exam term is probably not a good solution for you. Please give us a call so we can have a discussion about what your best life options really are.
Unlike whole life insurance, term life insurance never has any cash value but it can be the perfect solution for the right consumer needs.
Now, up to this point, I have been talking strictly about level premium term life insurance, not one of those cheap policies that starts low and goes up in price every 5 years until it expires at 75 or 80. Level premium term life insurance can be purchased in “terms” of 10, 15, 20 and 30 year increments. When the “term” is over, the level premium expires. Without exception, when the “term” is over, the policy will become extremly expensive. At that point, it should have served its purpose…the period of life you needed the coverage for. That is the sole intent of level premium term life insurance with no medical exam.
Buying Advice For Life Insurance With Preexisting Conditions
Folks, never buy a life insurance policy without first trying to qualify for a medically underwritten (health questions) policy. If you don’t like needles like many people, it does not mean you need to avoid health history questions. It will hurt your pocketbook a lot more then a few simple health history questions and potentially leave your loved ones without all the money you wish to leave behind.
Elderly people are often manipulated by companies using high paid celebrity endorsers. They are typically marketing, very high priced, guaranteed acceptance policies with considerable policy limitations.
These policies are for about 10% of the senior population, that’s all.
Find a independent agent/broker and tune out these companies and ads. They are not there to help you get the best deal on life insurance with preexisting conditions.
If you have not already, use our instant, no exam quoting tools. It will show you all the companies that offer these 3 types of protection. See for yourself. All you have to do is adjust the “Health Class. Compare your health to your peers, not someone in the “prime of their life.”
If you are believe you are ineligible for level benefit, simplified issue (“Excellent”) coverage due to the health question responses above you do not assume the worst. We work with dozens of life insurance companies and they all different health history questionaires.
If you are in a real pinch health wise, Guaranteed Issue (“Poor”) is available for application thru age 80. Again, I do not advise anyone to purchase this type of coverage until a licensed, independent agent/broker that works with a lot of life insurance consumers advises you of this.
Life Insurance Policy Without Medical Exam Requirements
The best no exam life insurance policy for preexisting conditions is going to be dependent on a number of factors. This includes your age, overall health, the amount of coverage needed and what the goal of the policy is.
The wrong policy type leaves your family in a tough financial spot. Many folks purchase a Guaranteed Acceptance policy and pass away unexpectedly first couple years. Where does this leave your family?
While there are people who may have a medically uninsurable condition, you should first heed the advice of your independent agent/broker and the insurance companies underwriting.
Let me be clear here: NO insurance company offers a guaranteed issue policy without a minimum of 2 years before full benefits are available to your beneficiary.
Looking for term life insurance with no medical exam, understand it will require better health than a no exam whole life policy.
With that said…
I strongly suggest talking to a independent life insurance agent when considering any life insurance policy especially if you are not in excellent health. Getting the best life insurance policy for preexisting conditions can be frustrating and even result in multiple declines which is not good either.
Life insurance is very personal and what is good for the goose isn’t necessarily good for the gander.
It will be easier on you to discuss the product/policy before applying so you know what you can qualify for. Get all of your questions answered and understand all the terms and any limitations before you sign on the dotted line and start paying the premium.
If you have any questions about life insurance without medical exam requirements including Guaranteed Issue, Graded Benefit, Simplified Issue, level premium term life insurance, give us a call at 269-244-3420 or reach out to us on our contact page. We’ll help you understand all your options and what might be best for you, your wallet and your loved ones.
As always, feel free to leave a comment below. Have a good day!