What is this type of insurance and who would it be best for?
No medical life insurance is best for people who have been turned down for a life insurance policy because of a health issue and have no other policies to turn to. However, they still wish to provide for their families if something might happen to them.
No medical life insurance may also be beneficial for people who are young, healthy, too busy or would prefer not to take a medical exam. The coverage that they can get with this is likely enough to meet their needs, especially if they have no dependents.
Enough for what?
To be clear as to what exactly no medical life insurance is, Investopedia explains that life insurance is money that will be paid out to the beneficiaries named by the purchaser of the policy so that loved ones will not suffer, and so that debts can be covered. In other words, ‘enough’ is the amount needed to cover the cost of the funeral, any legal and estate fees and coverage for your dependents and business partners so that they are left in good finanical shape.
Are there any downsides to the no medical life insurance option?
The premiums can be more expensive and they might not cover everything that you need, but for those with a pre-existing health condition, or who have been turned down in the past, this insurance can be a big relief.
Are you healthy?
Then you can be approved for some coverage, and later in life it may be converted into a permanent whole life policy without a need to requalify. However, a non-medical life insurance policy can be limited in what it will cover, so your coverage might not be enough for your needs unless you take a medical exam. If there is no reason why you would not pass a medical, then consider getting one and applying for full coverage now.
If you want more coverage but can’t pass the medical
For those who would rather not take the medical exam before they are insured, there are still some options to get more coverage. Look into your workplace life insurance policy. Some workplaces offer double your salary. Do you belong to a group plan? See if you can convert that plan into an individual plan. You may qualify for extra benefits, even with poor health. Your spouse may have an insurance plan or options that can add life insurance for their spouse under their policy.
Purchase a guaranteed issue policy that only requires some questions to be answered but does not require a medical. Note that premiums can be high.
Leverage mortgage, or credit insurance. This can pay out your mortgage or other debts.
No medical life insurance can be a blessing to anyone who cannot pass a medical exam due to a previous ruling or diagnosis. Who needs no medical life insurance? Anyone who wants to leave money to their loved ones, and anyone who wants to be sure that their family or their business partners are not left in bad shape after they are gone. And anyone who will have expenses or medical costs that will need to be paid after they are unable to work. If this sounds like you, and if you had previously thought that you were too unhealthy to be able to provide for your family with life insurance, then look into the options available. Make the proactive step and look for the life insurance choices that are available to you with a no medical life insurance policy.