March 18, 2019

No Questions Asked Life Insurance

Read more about 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:

You Should Know:
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.

You Should Know: With no questions asked policies, insurance companies may still access various resources, including:

  • 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).

Tip: If you are worried about passing a medical exam, blood work, or urine sample, no questions asked life insurance may be your best option.

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.

 AgeExamNo 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.

Tip: Shop around for the best rate. Some insurance companies charge much more for no questions asked life insurance policies than others.

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 AgesUp to age 85
Death Benefits Coverage$5,000 - $25,000
Price RangeExpensive
Application Approval TimeMinutes

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 AmountMonthly 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 Ages21 - 65
Death Benefits Coverage$25,000 - $500,000
Price RangeModerate
Application Approval TimeFew 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)

 AgeMonthly 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 AgesUp to age 80
Death Benefits Coverage$5,000 - $50,000
Price RangeExpensive
Application Approval TimeWithin 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)

 AgeMonthly 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 Ages21 - 75
Death Benefits Coverage$50,000 - $1 million
Price RangeInexpensive
Application Approval TimeWithin Minutes

Simplified issue term life has limited options if you are 66 -75 years old:

  • 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 Amount10-Year20-Year30-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 AgesUp to age 85
Death Benefits Coverage$5,000 - $50,000
Price RangeModerate to High
Application Approval TimeOne - 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 Amount40 Year Old75 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 AgesVaries. Usually around 85
Death Benefits Coverage$5,000 - $50,000
Price RangeModerate
Application Approval TimeTwo 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)

 AgeQuestionsNo 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 Ages50 - 80
Death Benefits Coverage$10,000 - $150,000
Price RangeHigh
Application Approval TimeOne 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)

 Age10-Year20-Year30-Year 
55$59.50$70.00$59.50
65$93.00$125.00Not Available
75Not AvailableNot AvailableNot Available
85Not AvailableNot AvailableNot Available

Sample Quotes for Rapid Decision Senior Whole Life Insurance
(Examples are based on the monthly premium for a $10,000 policy)

 AgeMonthly 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.

More from CreditDonkey:


Life Insurance for Seniors Over 70


Types of Life Insurance


Term vs Whole Life Insurance

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