No Questions Asked Life Insurance
Life insurance can be stressful if you're worried about being rejected. No-questions-asked policies are an option and they're not as expensive as you think. Read on to learn more.
 |
Did you know a typical life insurance application asks about 30 questions in the medical history section? That's in addition to the roughly 48 general information questions AND a required medical exam.
No-questions-asked life insurance offers a way around the time-consuming process of answering all those questions.
These policies are also called:
- Go Medical Exam Life Insurance
- Guaranteed Acceptance Life Insurance
- Guaranteed Life Insurance
One big misconception is that life insurance with no health questions costs more. That's not true in all cases. We'll show cost comparisons below.
No questions life insurance gives you the protection you need quickly and easily. Some life insurance carriers provide same-day life insurance approval, sometimes within minutes. Read on to learn more.
What Is No Questions Asked Life Insurance?
During the application with no questions life insurance, you'll have:
- Few or No Health-Related Question
- No Required Medical Exam
- No Lab Tests
For many people, no questions asked life insurance is a necessity for getting quick approval for coverage. It's the preferred choice IF:
- You lack the time or desire to answer all those questions.
- You don't want to be bothered having a medical exam performed at your home or business by the life insurer's medical examiner.
- You only need a small amount of coverage.
- You need life insurance quickly as part of a divorce decree.
- You have a fear of doctors or needle phobia and don't want to take a medical exam and blood test.
- You're a full-time college student with limited time.
- You work part-time or are currently unemployed and have been turned down by other life insurers.
- You need life insurance to get a personal or business loan approved.
- The Medical Information Bureau Database
- Prescription Medications Database
- Motor Vehicle Records Database
Insurers use the information they obtain to rate your policy. This rating reflects the extent of risk you pose to the insurance company. It is also used to determine the cost of your life insurance policy.
Advantages and Disadvantages of No Questions Life Insurance
The advantages of no questions asked life insurance may outweigh its disadvantages in many cases. Let's look at both.
Advantages
- No medical exam and very few health questions, if any.
- No blood or urine test required.
- Approval is quick, often in minutes.
- Some plans have guaranteed coverage.
- Pre-exisiting conditions aren't a disqualifying factor.
- Policies exist even if you have serious medical conditions.
Disadvantages
- Coverage amounts are limited.
- Waiting periods before full death benefits are common.
- Cost can be higher.
- Your health record can still be accessed.
- A few policies have long approval times (15 days).
Assuming you pass a full medical exam down the road, you can always apply for traditional life insurance. Then compare the two premiums and cancel your no questions asked policy if there's a major cost difference.
Cost Comparison of Life Insurance
Many people shy away from no questions asked life insurance policies because they think they're going to pay a lot more. But that's not always true.
Not providing health-related information doesn't necessarily mean you'll pay significantly more. In some instances, you may pay only a few extra dollars in premiums. For some, skipping the medical exam, blood test, and urine sample may be worth it.
Read on for a cost comparison.
Medical Exam vs No Medical Exam
Here's an example of a 20-year, simplified issue term life insurance with a $100,000 death benefit. The estimated monthly premium is based on the insurer finding very little health concerns in the medical databases.
| Age | Exam | No Exam |
|---|---|---|
| 20 - 29 | $10.30 | $10.30 |
| 30 - 39 | $10.40 | $11.00 |
| 40 - 49 | $13.15 | $13.55 |
| 50 - 59 | $26.25 | $26.25 |
| 60 - 69 | $63.10 | $63.10 |
As you can see, the cost is the same regardless of a medical exam for some ages. But you could end up paying 30% to 40% more if the databases reveal numerous health risks.
Types of No Questions Asked Life Insurance Policies
You have several choices with no questions asked life insurance. Each has different requirements and caters to different circumstances. Coverage options and costs also vary.
The seven types of no questions life insurance policies are:
Guaranteed Issue Life Insurance
This type of policy guarantees coverage for life. No health questions are asked and no medical exam is required. Anyone who applies for coverage is accepted.
Usually, there is a two-year waiting period before the death benefit is distributed. If you die before the waiting period is up, your beneficiary only receives what you paid in premiums plus interest.
| Guaranteed Issue Life Insurance | |
|---|---|
| Qualifying Ages | Up to age 85 |
| Death Benefits Coverage | $5,000 - $25,000 |
| Price Range | Expensive |
| Application Approval Time | Minutes |
Ideal for: Older people; those who need a small amount of coverage; those with pre-existing conditions or major health issues who don't qualify for any other
Sample Quotes for Guaranteed Issue Life Insurance
(Examples are what a 65-year-old can expect to pay each month)
| Coverage Amount | Monthly Cost |
|---|---|
| $5,000 | $34.00 |
| $7,500 | $52.00 |
| $10,000 | $69.00 |
| $15,000 | $104.00 |
Simplified Issue Universal Life Insurance
This permanent life insurance provides death benefits and builds cash value. The simplified application contains very few questions and there's no medical exam.
However, the life insurance company may request to see your medical records. If you have certain medical conditions, the insurer can reject your application.
| Simplified Issue Universal Life Insurance | |
|---|---|
| Qualifying Ages | 21 - 65 |
| Death Benefits Coverage | $25,000 - $500,000 |
| Price Range | Moderate |
| Application Approval Time | Few Hours - One Day |
Ideal for: Those who need life insurance right away; anyone with pre-existing conditions; people with risky or dangerous jobs; anyone who doesn't want to submit to a medical exam and other lab tests
Sample Quotes for Simplified Issue Universal Life Insurance
(Examples are per month premiums for a $250,000 policy for someone in very good health who doesn't smoke)
| Age | Monthly Cost |
|---|---|
| 25 - 35 | $128.00 |
| 35 - 45 | $175.00 |
| 45 - 55 | $269.00 |
| 55 - 65 | $452.00 |
Level Death Benefit Whole Life Insurance
This is permanent life insurance where the death benefit and premium remain fixed. The full benefit payout is made with no waiting period.
As whole life insurance, the policy provides a death benefit and builds cash value.
| Death Benefit Whole Life Insurance | |
|---|---|
| Qualifying Ages | Up to age 80 |
| Death Benefits Coverage | $5,000 - $50,000 |
| Price Range | Expensive |
| Application Approval Time | Within a Day |
Ideal for: Those with certain medical conditions, like high blood pressure, type II diabetes, and high cholesterol, and who are being treated with medication
Sample Quotes for Level Death Benefit Whole Life Insurance
(Examples are per month premiums for a $50,000 policy for a nonsmoker)
| Age | Monthly Cost |
|---|---|
| 20 | $73.50 |
| 30 | $99.15 |
| 40 | $144.90 |
| 50 | $223.95 |
Simplified Issue Term Life Insurance
This differs from simplified issue universal life insurance in two key ways: First, the insurance expires. Second, it provides a death benefit only.
Term options are 10, 15, and 20 years. You select a time span and when that term is up, your policy ends.
| Simplified Issue Term Life Insurance | |
|---|---|
| Qualifying Ages | 21 - 75 |
| Death Benefits Coverage | $50,000 - $1 million |
| Price Range | Inexpensive |
| Application Approval Time | Within Minutes |
- Only 10 year policies allowed.
- Coverage is capped at $99,999.
Ideal for: Those in average health; anyone needing more than $50,000 in coverage
Sample Quotes for Simplified Issue Term Life Insurance
(Examples are what a 50-year-old in average health can expect to pay each month)
| Coverage Amount | 10-Year | 20-Year | 30-Year |
|---|---|---|---|
| $50,000 | $21.00 | $27.00 | $42.00 |
| $100,000 | $31.50 | $47.00 | $75.50 |
| $200,000 | $68.00 | $107.00 | $165.00 |
Graded Death Benefit Whole Life Insurance
This permanent life insurance provides coverage for life at a fixed rate. The application asks a few basic health-related questions.
It features a phased-in death benefit instead of a waiting period. If you die during the first two years of the policy, the death benefit amount paid out is reduced.
| Graded Death Benefit Whole Life Insurance | |
|---|---|
| Qualifying Ages | Up to age 85 |
| Death Benefits Coverage | $5,000 - $50,000 |
| Price Range | Moderate to High |
| Application Approval Time | One - Two Days |
Ideal for: Those with serious health issues; anyone with a history of heart disease, stroke, type 1 diabetes, or substance abuse
Sample Quotes for Graded Death Benefit Whole Life Insurance.
(Example shows cost per month).
| Coverage Amount | 40 Year Old | 75 Year Old |
|---|---|---|
| $10,000 | $18.75 | $118.35 |
| $50,000 | $76.10 | $576.45 |
Final Expense Life Insurance
This is specific life insurance designed to pay for funeral and burial costs and other debts. It's also known as senior life insurance and burial insurance.
Some insurers base coverage approval on responses to a few health history questions. Others ask no health questions, but the coverage cost is higher.
It is permanent life insurance in which the death benefit and the premium remain the same throughout the life of the policy. There is no waiting period for full death benefits to be paid out.
| Final Expense Life Insurance | |
|---|---|
| Qualifying Ages | Varies. Usually around 85 |
| Death Benefits Coverage | $5,000 - $50,000 |
| Price Range | Moderate |
| Application Approval Time | Two Days |
Ideal for: Those with minor health concerns; anyone who wants to cover only end-of-life expenses.
Sample Quotes for Final Expense Life Insurance
(Examples reflect monthly premium amount for $20,000 in coverage)
| Age | Questions | No Questions |
|---|---|---|
| 65 | $41.00 | $54.50 |
| 75 | $71.10 | $95.85 |
| 80 | $98.45 | $135.15 |
Rapid Decision Senior Whole Life Insurance
Designed for seniors, this life insurance product is available as term or permanent insurance. It provides death benefit options up to $150,000. Term options range from 10 to 30 years, with availability limited by age. The permanent insurance plan accumulates cash value.
No medical exam is required, but a few health-related questions are on the application. Seniors with serious health issues may not be approved for coverage. There is a waiting period before full death benefits are paid out.
| Rapid Decision Senior Whole Life Insurance | |
|---|---|
| Qualifying Ages | 50 - 80 |
| Death Benefits Coverage | $10,000 - $150,000 |
| Price Range | High |
| Application Approval Time | One to Two Days |
Ideal for: Seniors with certain health conditions that prevent them from getting traditional life insurance
Sample Quotes for Rapid Decision Senior Term Life Insurance
(Examples are based on the monthly premium for a $25,000 policy)
| Age | 10-Year | 20-Year | 30-Year |
|---|---|---|---|
| 55 | $59.50 | $70.00 | $59.50 |
| 65 | $93.00 | $125.00 | Not Available |
| 75 | Not Available | Not Available | Not Available |
| 85 | Not Available | Not Available | Not Available |
Sample Quotes for Rapid Decision Senior Whole Life Insurance
(Examples are based on the monthly premium for a $10,000 policy)
| Age | Monthly Cost |
|---|---|
| 55 | $47.00 |
| 65 | $69.00 |
| 75 | $105.50 |
| 85 | $185.50 |
Mistakes to Avoid
People looking for no questions life insurance usually want to secure coverage in a hurry. But that's just when you can make costly mistakes.
Know about the coverage you're buying—you don't want to be in such a hurry that you skip reading the important stuff.
Some things to watch out for:
- A policy where the premiums increase as you get older.
- Paying too much for very little life insurance benefits.
- Buying a policy that only covers accidental death.
To avoid these mistakes, take the time to review all the different types of no questions asked life insurance options.
Bottom Line
Applying for life insurance involves answering many questions about your health and medical history. You can avoid this hassle by looking into a no questions asked life insurance policy.
Many life insurance companies offer competitive rates for people who prefer to skip the long application process.
Before deciding if a no questions life insurance plan is right for you, be sure to:
- Consider its advantages and disadvantages;
- Compare the different types of policies available;
- Perform a cost comparison.
In the end, you may find it much faster and easier to secure life insurance coverage with a no questions asked policy.
Write to Maryellen Cicione at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
|
|
|
