Life Insurance for Seniors- The Ins and Outs of No Exam Policies

Lenny Robbins
Apr 14, 2014 8:45:00 AM

For seniors considering a life insurance policy with no medical exam, securing a plan may seem fast and easy. But variations in coverage, carrier and cost can quickly turn a seemingly simple task into a long (and confusing) journey. Understanding the many different types of policies as well as their restrictions and requirements can leave seniors feeling anxious, overwhelmed and hesitant to sign on the dotted line.

senior-life-insurance-ins-and-outs-2018Before finalizing a no exam life insurance policy, it’s important to understand the factors that impact the cost and coverage of that policy and how a reputable independent insurance agent working with highly rated carriers can help seniors find a comprehensive plan that fits their needs and budget.

Knowing Policy Types

As with other types of insurance, the overall costs of no exam life insurance for seniors will vary with the policy type. In this case, seniors have two options;

  • Guaranteed Issue Policies which require no health questions or exams and accept all applicants regardless of their health or lifestyle. Returns to your beneficiary would be return of premiums paid pluc interest if they need to collect in the first two years. However after two years the death benefit is paid in full. This is a last choice option to be used only if you are uninsurable by other policy types.
  • Underwritten no Exam Policies do require applicants to meet additional qualifications but this policy type gives seniors access to term life policies and whole life insurance. Although cost for this policy type(s) is higher than fully underwritten policies, approval time is very fast.  After age 75 only whole life policies are available.

By working with an independent agent, seniors can confidently select from these policies (and others) and receive invaluable advice about the benefits of each type they are considering.

Know the Restrictions and Limitations 

Independent Life Insurance agents can also support consumers in understanding and evaluating the various limitations and restrictions affecting policy costs. There is a common misconception that no exam life insurance policies don't require submission of any health information.

The reality is applicants must answer a number of questions concerning their medical history and lifestyles that could impact their ability to qualify and also their premiums. Additionally, insurance carriers will check the Medical Information Bureau and an Rx Database before approval.

Depending on the state you live in and the company you choose, there are different maximum ages for life insurance policies.  Each company has slightly different requirements, even for non medical policies.

If you are healthy, and you are willing to take a paramedical exam, you may be able to get the same amount of insurance or more for a lower premium.  The best idea is to talk to your independent agent about.

Knowing the Carriers

There is good news and there is bad news. The good news is there are many reputable, reliable and highly rated no exam life insurance carriers serving seniors. The bad news? The costs, restrictions and limitations for each policy vary from carrier to carrier.

But here’s a good news bonus—your independent life insurance agent has access to many quality companies and can use his or her expertise to find a great fit at the right price for their client.

Seniors can work with an agent who knows their needs and their circumstance and find an appropriate and reliable no exam life insurance provider.

The Bottom Line

For seniors, finding an accurate quote for the right life insurance coverage without an exam can be a daunting task done alone. By working with an independent life insurance agent seniors can choose the best life insurance policy possible. 

Download The Final Expense Life Insurance Handbook