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.
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 no 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. 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 read because it provides the info you need to move forward in your quest.
No Exam Life Insurance Policies
There are 3 common types of no exam life insurance out there. The largest majority of them are based on whole life insurance and the easiest to qualify for. There are also no exam term policies out there but the vast majority of them require pretty decent health to qualify in contrast. We will touch on term life insurance with no exam latter in this article.
Life insurance for adults with health problems is easily obtained buy purchasing a no exam whole life insurance policy. You do not have to be in good health to purchase to purchase very good coverage. With that said, we will on only discuss the appropriate whole life insurance products. Not all carriers will offer the same 3 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 know as “Guaranteed Acceptance life insurance.”
All 3 types of whole life insurance policies require no exam, blood tests etc. 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 and:
- Whether or not to offer the coverage for the insured (could be you or another individual) and if so;
- The appropriate premium to charge (based on the results of the paramedical exam)
In some cases, a medical exam may work against 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.
With that all said…
If you just don’t like the idea of having a medical exam in your home, then no exam whole 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. Some carriers have small 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 considerably higher than other life insurance whole policies per thousand dollars of coverage. Simplified Issue has higher risk 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 benefit are commonly 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 a significant amount of medically diagnosed health problems.
Don’t assume you have to be a senior to apply.
These policies are more commonly designed for applicants age 50-85 companies. 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
Guaranteed issue life insurance is only available in 1 form. That form is based in whole life insurance. There is NO guaranteed issue term life insurance in the industry.
I mentioned earlier in this article a no exam, life insurance product called Guaranteed Issue Whole Life Insurance. The major difference and unlike the 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 a insurance carrier.
Sadly, most consumers don’t understand how “guaranteed acceptance” costs them and their loved ones dearly. Often it is purchase because they assume medications or a couple medical conditions will result in a decline.
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.
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
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 on life insurance. These are people who don’t even have a life insurance license.
Ok, I got my rant out of the way.
No likes needles do they? Not only is a paramedical exam an inconvenience but there is the nurse knocking on your 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 for a known period of time. Maybe your paying on 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. Remember the major difference, whole life is designed for a the inevitable whereas term life is for the “what-ifs.”
If you need term insurance and are in pretty good health for your age, term life insurance no medical exam is readily available and simple to apply for. Term life insurance is simply harder to qualify for as a general rule. If you have significant health issues, no exam term is probably not a good solution. Please give us a call so we can have a discussion about what your best term life options are. If you would prefer to keep reading about how get a term quote with less than good health, check out our page on health classifications and ratings. If you’re reading this very late, you can still gather a good idea of what you might be paying for term life insurance with the info and tools on that page.
Unlike whole life insurance, term life insurance never has any cash value However, there are some living benefits inside certain term life policies typically not found in no exam whole life policies we’ve discussed.
Now, this is level premium term life insurance I am referring to, not one of those cheap policies that starts low and goes up in price every 5 years only to be expensive down the road. Level premium term life insurance can be purchased in “terms” of 10, 15, 20, 30 year increments. When the “term” is over, the level premium expires. Without exception, when the “term” is over, the policy will become very 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 term life insurance with no medical exam.
Buying Advice For Life Insurance With Preexisting Conditions
Folks, never buy a life insurance policy without trying to qualify for a medically underwritten (health questions) policy. I understand if you don’t like needles, just don’t intentionally avoid health questions. It will hurt your pocketbook a lot more then a few simple health history questions and potentially hurt your loved ones if death occurs in the first couple years of ownership.
A comment I’d like to add for seniors with preexisting medical conditions…
Elderly people are often manipulated by companies using high paid celebrity endorses. They are marketing, very high priced, guaranteed acceptance policies and leaving out policy limitations.
These policies are for about 10% of the senior population, that’s all.
Find a real professional 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, fill out our instant Final Expense Quote Tool/widget on this page. 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. Try a quote in each class. “Excellent,” “Decent” and then “Poor.” 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”) due to the health question responses above you should 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. However, 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 applicants with preexisting conditions 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 and pass away almost 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. That is not good.
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, please our contact page or give us a call at 269-230-3464. 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!
Michael is a licensed and veteran independent life and health insurance agent who specializes in guiding people with even high risk conditions thru the insurance process. He is passionate about helping individuals and families get their unique financial protection needs met, providing his experienced based advise and delivering affordable and dependable coverage people and families can count on.
