A no medical life insurance policy is a good solution for seniors over 80 who have trouble getting traditional insurance coverage due to their age or any age-related illness they may have.
A senior without significant health issues can benefit from the low rates of standard insurance, which is also known as traditionally underwritten insurance.
If you have a serious medical pre-condition that will prevent you from qualifying for a standard rate, you have other options.
If you are a senior with health issues you have two options:
Simplified Issue No Medical is the least expensive type of no medical life insurance.
It comes without a medical exam but has a list of insurance questions that you are required to answer.
Simplified issue insurance has some limitations on maximum insurance coverage limits, and the benefit typically ranges from $50K to $300K.
It is important to check with an insurance provider or broker to see if your policy comes with an “immediate claim payouts”.
An immediate claim payout means that an insurance claim can be submitted even if a policyholder passes away immediately after getting a life insurance policy.
A policy with “deferred payouts” will not pay a death benefit within the first one or two years.
Guaranteed Issue policies are available for Seniors with health issues.
Similar to Simplified Issue life insurance, these policies do not have medical tests, but they also do not have any health questions.
Guaranteed issue life insurance does not require a medical exam or the completion of a health questionnaire, but it would most likely result in the highest premiums (for the same coverage) and the size of your coverage might be limited (e.g. $25,000).
This type of insurance usually comes with a two-year waiting period.
That means if the insured life passes away within two years of the policy being purchased, a claim will not be paid (but usually, premiums will be returned to the policy holder).
The waiting period is added to prevent people from buying life insurance when they already know in advance that they will die soon.
Despite its drawbacks, guaranteed issue insurance is quite popular and is often used as funeral insurance (also called final expenses or burial insurance) when a policyholder wants beneficiaries to have enough money to cover funeral expenses.
Though no medical life insurance is not an insurance product for everybody, there are situations where it offers the perfect solution, especially for those that are difficult to insure (e.g. those with a history of cancer, HIV, heart disease or history of heart attacks, Obesity, Depressions etc.) or those that hate medical exams.
Finding the right life insurance policy is not always an easy task, but it is one that is well worth the effort.
Purchasing a policy is easier now than it has ever been in the past, even for seniors that have significant health issues.
Everyone has the opportunity to purchase a life insurance policy that can protect those they love.