Should you apply for no medical exam life insurance? Well, it certainly looks like a simple and convenient thing to do. However, do not be mislead by advertisements. While a fast application and issue process can be attractive for many people, it can also cost more money that you could be saving with very little trouble.
Just because a company advertises policies without a medical exam should not lead you into thinking that the company will not do any underwriting on your health status. Now some companies do have a "guaranteed life insurance" product and these will be issued, regardless of health status. However, they usually do not provide an immediate death benefit. These types of plans use a waiting period, instead of health exams or health questions in order to pay out the full face value of the policy. For applicants who do have health problems, or who have had a previous decline situation, these are good deals. They usually pay out the full benefit after a waiting period of 2 or 3 years, and before that they pay back the premiums paid plus some set interest amount. However, they premiums are usually higher than other types of life insurance, and again, the full amount of the face value will not be paid out unless the insured person survives past the waiting period.
The next level of life plans are called simplified issue policies. In this case, the company will ask simple health questions and not require a physical exam. These plans will have an immediate death benefit, so the insured person could pass away 3 days after the policy is issued, and the whole face value will be paid out to beneficiaries. The monthly premium will be less than a guaranteed life insurance policy for the same amount of insurance and age and gender of person.
The vast majority of people can find coverage under simplified issue policies, and if you are older and have minor health conditions, you should be advised to look at simplified issue before guaranteed issue! If you are still living at home and mostly caring for yourself, you should still qualify for the immediate death benefit and more affordable coverage.
The next level of life insurance policies ask more extensive health questions and probably, check the Medical Information Bureau (MIB), to confirm answers to health questions. Again, if you are middle aged or younger, and if you are fairly healthy, you will find that you can probably get larger amounts of life insurance for less money if you just go ahead and give the insurance company more information. You must balance your desire for privacy against the price of the policy. Even if you have some health issues, but you are controlling them with a doctor's advice, then you may want to check out a life insurance policy that does require more extensive health evaluation. Nowadays, some insurance companies will offer a few hundred thousand dollars of life insurance with this requirement.
The most comprehensive health evaluation is considered a fully underwritten policy. An insurance company may require urine samples, blood samples, or even a full physical exam. The insurance company will usually pay for the exam, and very often, the evaluation can be done at your home at your convenience by a trained paramedical company. If you consider yourself healthy, then you probably have nothing to lose by submitting to this. A few minutes of your time can save a lot of money and allow you access to higher amounts of life insurance coverage!
Finally, you must balance your own desire for privacy and convenience with the potential for obtaining the lowest cost life insurance. In general, the easier it is to obtain life insurance, the more it will cost per every thousand dollars of coverage. This is not to say that a 74 year old man should not go for simplified issue policies because they will probably not qualify for fully underwritten life insurance anyway. However, a healthy 40 year old woman should probably just go through the whole underwriting process because it will allow her to get a much larger face value of insurance for less money!