For those reaching their golden years and looking forward to a relaxing retirement, life insurance is one of the more important considerations. While there are many different insurance options, no exam life insurance has several important benefits specifically for seniors.
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There could be many reasons for the popularity of this policy type, but it is certainly proven to be the policy of choice for senior citizens looking for insurance policies that have less stringent stipulations even if they do mean paying a higher premium.
Offering a premium that is not attached to a scathing medical examination is not a new concept, but the modern senior citizen is in better health and with improved life expectancies than were common twenty or even ten years ago. This trend in better health has encouraged insurance providers to offer these policies and coverages to seniors at a better price.
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What is a ‘No Exam Life Insurance’?
As its name implies, no exam life insurance offers seniors the many benefits of regular life insurance policies along with the promise of financial assistance to your family and loved ones should something happen to the policy bearer. Typically a medical examination is applied to ascertain the risk being shouldered by the insurance provider. A medical examination will help the insurance provider set the best possible rates for the policy. This risk assessment has been a part of insurance policies since the onset of this financial security plan.
How does it work for the senior?
With a senior citizen’s no exam insurance policy, things are different. The insurance company does not apply such severe guidelines to their policy premiums. They will typically rely on the age of the applicant and the answers to some more important health-related questions as well as a few other non-medical issues that could influence the ideal rates for the benefits provided.
The coverage found here is a lot like that found in term-life insurance, where the applicant is provided with coverage for a specific amount of time. This could be ten to twenty years or more depending on provisos laid out in the insurance policy. There are some distinct advantages and disadvantages associated with this type of policy.
When Would No Exam Life Insurance Be the Best Options for Seniors?
The Current of Health Conditions: Those who have undergone serious health issues in the past may find that life insurance without medical exam would be the only choice they have. Those who have suffered from especially debilitating diseases or those that tend to recur in the future, cancer, for example, are not eligible for standard policies. Those that have long lasting health conditions, such as diabetes, arthritis or heart conditions may also benefit from the no exam life insurance policy.
Better Premiums: Many of the most reputable insurance providers offer very competitive rates over their competition. This is a good reason to choose no exam life insurance. Lower premiums add intrinsic value to the policy providing coverage.
Fewer Procedures and Hassle: Medical examinations can be an especially unpleasant process for a senior citizen who has kept themselves in good health over the past few years. Furthermore, the older the applicant, the less they will want to submit to a medical examination simply for an insurance policy. This can be a decent choice for elderly over 85 years.
With the no exam life insurance policy, the underwriting process is faster, and the benefits can even be enjoyed by the following day which is a real opportunity for seniors over 80 years. Of course, you will still need to take the time to compare the premiums, coverage and policy details as well as arrange payments methods for the policy you choose. But this is a straightforward process and requires little paperwork.
When Such Plan doesn’t Make Sense?
Despite the advantages of a no exam life insurance policy, some reasons would make the standard life insurance policy more ideal, even if they are only issued after a medical examination or test.
Excellent Health: If you are a senior citizen in good health and without any of the health conditions that could affect your policy, you may be able to apply for the standard life insurance policy and enjoy considerably lower rates. If you believe that the medical examination won’t pose an obstacle to you, this may be your best option.
High Premiums: You will find that a life insurance policy without medical exam is considerably more costly than the regular term policy. When you are shopping around for a life coverage, you might find that your no exam insurance coverage is beyond your budget capacity or not worth the higher cost. Insurance providers offering these plans are not able to adequately assess the risk they will incur, and so they compensate their possible losses with a higher premium.
Age: For those in good health, the younger you are, the better your chances of finding an inexpensive insurance policy. For those who are nearing their senior years the prices difference between no exam insurance policies and the standard type can be staggering. This means that even though the medical examination can be a slight inconvenience, it is worth the reduced costs in premiums.
Is the ‘No Exam’ Policy the Best Choice for You?
Smaller benefits that will cover the costs of funeral arrangement and debts will usually be provided by a policy that is still relatively inexpensive. This may offset the expenses incurred by no exam insurance policies. Insurance providers will often lower the premiums if the benefits are also small. This would be one example of how the slightly increased costs of no exam insurance policy may still be an advantage.
On the other hand, if you are looking to leave your surviving family a real legacy and a sizable benefit, you will also be looking at some pretty high premiums. This sizable legacy can provide no end of benefit to the security, education and any other particulars you would like to address. You will want to consider all your options before making a decision.
It is important to look at your policy and options from every angle before making the decision best for you. You will want to consider your financial situation as a whole including current debt as well as entire estates. This will give you a better picture of what you are leaving behind to those loved ones who will be most affected by your demise.
The time to decide…
In the end, the no exam life insurance policy is the most advantageous option for senior citizens. Nevertheless, some specific factors must be considered to determine the best choice for the individual.
Never forget that the right policy applied at the right time can provide many benefits to your family. By the same measure, the wrong policy for you can cost you a considerable amount of cash which won’t be worth the pay off in the end.