Life insurance is designed to give financial protection to your dependents in case you pass away unexpectedly. You pay premiums every month to an insurance company in exchange for a certain amount of coverage; if you die while you the plan is still active, your insurance company pays out that amount to your dependents, but if you outlive your policy, they get to keep the premiums you’ve paid. Because paying out policies costs the insurance companies significantly, they will assess how much risk they’re taking on by insuring you in a process known as “underwriting” before issuing you a policy.
Underwriting involves determining how healthy you are, whether or not you’re a good driver, and other factors that could contribute to a lower life expectancy. One step that is usually part of underwriting for traditional life insurance plans is a medical exam. For most people, this isn’t a big deal, but if you have chronic conditions or a troubling family medical history, getting approved for a policy – or for an affordable policy – can be difficult. If you are denied coverage and something happens to you, your family could be left in a scary financial situation, without the financial or caregiving support you provided.
If you’re nervous about this happening to you, applying for non-medical life insurance may be the best option! Non-medical plans are not fully underwritten products, so you will not have to take a medical exam. You may not even have to answer questions about your health, depending on the type of non-medical plan you choose.
They offer fast coverage.
Getting approved for a traditional life insurance policy can take a long time – up to six weeks! – because of underwriting. The medical exam has to be scheduled and performed, the results and lab work have to go through and be assessed by the appropriate parties, there’s paperwork involved, etc. In some cases, though, waiting six weeks may not be possible. Perhaps you’re going on a trip out of the country without your kids, and need coverage in a few days. Perhaps you’re applying for a loan for your business and need collateral quickly. Whatever your personal or professional reason is for wanting coverage immediately, getting approved for a non-medical life insurance policy is much faster. Some insurers will approve you instantly or within 48 hours!
They’re highly convenient.
If your life is as busy as the average American’s, or if you have young kids, then trying to squeeze a medical exam into your hectic schedule can be a hassle. It may even make you feel uneasy in the current pandemic climate, or if you have a fear of needles like 20% of the population does. Because non-medical insurance plans don’t require a medical exam, you can avoid all of that stress and get coverage simply and easily.
They give approval even for people in high-risk categories.
Non-medical life insurance isn’t just for people in poor health, although that is the primary reason why people search and apply for this type of policy. It’s not just the medical exam that gets skipped in a non-medical life insurance application, but the entire (or partial, depending on the plan type) underwriting process. This means that people with dangerous jobs or hobbies, people with resolved criminal records, and older adults who would otherwise have a hard time finding life insurance can still get quality coverage.
They may not be as expensive as you think.
Because non-medical life insurance policies don’t require a medical exam, they take on more risk to cover you, and that will be reflected in the price of your premium. However, over half of the population estimates the cost of life insurance at three times the actual cost, so whatever number you are picturing in your head for an “expensive” non-medical plan will likely be much lower. One article estimated the cost of a non-medical term life insurance policy to be between $3.49 and $134.44 per month; your premiums will depend on where you live, your gender, your age, and how much coverage you are paying for. The older you are, the more expensive non-medical coverage will be. If you don’t currently have life insurance and think that a non-medical plan may be the right option, don’t wait any longer – get a personalized recommendation online via our Needs Assessment Tool or call us to speak with a licensed agent!