This post may contain affiliate links, which means if you click through and purchase something using my links, I receive a small commission. You can click here to read my disclosure policy ? Thank you!
Insurance companies are always created new products tailored to their clients. Through the years, the Mexican Insurance Store has established a variety of new sub-types of insurance coverage for all clientele.
All of these plans look the same but have tiny differences. While they might seem identical, the differences could drastically impact your life insurance coverage.
We are going to look at three of the most confused types of life insurance out there. If you want life insurance coverage without the medical exam, you need to know these three kinds of insurance.
No Exam
The first option is the basic no exam plan. This is what most people think of when they consider buying life insurance without having to take the exam.
With this kind of plan, they don’t require you to undergo the medical exam, but they are still going to get a lot of information about you. They are still going to get your medical records and doctor’s notes, which means your health still might play a role in your coverage.
The main benefit of no exam plan is the speed. No exam plans can get you coverage in a fraction of the time. Agencies like Haven Life have accelerated the underwriting process and made it much faster than other companies. You can get approved in days, not months.
They are going to still pull your medical records, look at your prescriptions, and even your driving records. They will use all of this information to fill in some of the gaps left behind by the lack of medical exam. They still want to know as much about your health as possible.
No exam policies still require a lot of work from the insurance company, but you can get a lot of protection. Most companies sell no exam plans with anywhere from $200,000 to $750,000 worth of insurance, but you can get up a million dollars of life insurance coverage with a few.
Guaranteed Issue Life Insurance
The next time of coverage is not as well-known as the traditional no exam policy, but there are several differences to be aware of.
Guaranteed issue plans are exactly as their name says, guaranteed. It’s a sure thing. You apply for coverage, you won’t get declined.
You have to do some paperwork, they will ask you a few simple questions about yourself (age, gender, etc.) and then you will be rewarded with life insurance protection.
No exam, no questions, just basic life insurance protection. This is one of the simplest ways to get insurance coverage. With these plans, there are only a few reasons you would ever get declined. Pretty much the only reason is if you already have a terminal illness.
One of the reasons a lot of applicants avoid these guaranteed issue plans is because of the limits on protection. Every company has different coverage ceilings, but most are going to cap it at $25,000.
If $10,000 is enough life insurance for you, then they aren’t a wrong choice, but for most people, it’s nowhere near enough insurance. For most people, we only recommend these plans as a last ditch effort for insurance coverage.
Burial Insurance
Burial insurance (also called final expense insurance) is very similar to guaranteed issue plans, but with some key differences, one of those is the application process.
Guaranteed issue asks almost no questions. There is almost no way you’ll be rejected. Final expenses plans are simplified issue, meaning it’s much easier than a traditional policy, but they will ask a few questions. It’s in the middle of a no exam plan and a guaranteed issue policy.
Burial insurance policies offer more protection than a guaranteed issue. The is more information required, but it allows you to get more insurance. Most agencies will offer you up to $25,000. Still, a minimal amount compared to a normal policy, but more than double what you can get with the average guaranteed acceptance policy.
Life Insurance without the Medical Exam
Hopefully, now you understand the pros and cons of each of these plans. The differences may seem small, but they will have a big impact on your life insurance.
No exam life insurance is becoming more and more popular every year. People don’t want to waste their time going through the medical exam, and waiting months to get life insurance. Some people may discover that life insurance can be hard to gain as they could be a cigarette smoker. Life insurance quotes for smokers in a Google search normally brings up some creditable companies who will be happy to insure you for life.
Good info. With some medical conditions it is very difficult to get life insurance. My brother has a condition that has prevented him from getting life insurance beyond what my parents got for him at birth. Even though he is young, so far he hasn’t been able to get additional life insurance. He’s tried the no exam option, but maybe he needs to try again through the guaranteed option to see if it is affordable. Thanks for putting this out there.