Not only are there are different types of life insurance, but they also may have different
requirements. No medical life insurance is offered without the insured having to take a medical exam. Many people prefer this convenience, especially when we consider getting final expense insurance for the senior population. Let's discuss no medical exam life insurance specifically when it is used for final expenses.
Who buys final expense policies?
Most of the time we find seniors in the 70 year old to 85 year old range are interested in final expense insurance. It's a time when we begin to think about what will happen when we pass? How much will a funeral cost? Will I leave debts behind? What do I have to do to get insurance? This is where a no exam life insurance policy can be helpful because it's so easy to get.
Sometimes it's the senior themselves, or it may be their family who contacts us. We find children, grandchildren, nieces and nephews of seniors are interested in buying coverage to help pay for funeral expenses and other expenses at the end of one's life. If you are the one who will be responsible, having the insurance can make your task much easier. Click here for more information.
How much insurance can I buy?
- The face amounts for these final expense policies generally range from $2,000 up to $25,000. (We have one company that offers $40,000.) You should know that the only types of final expense policies we offer are ones where the premium and the face amount remain the same for your lifetime.
- If you are looking for more coverage thanyou can buy from one company, you can buy policies from two or more carriers.
How can I get a policy?
Each carrier has slightly different underwriting questions. You may qualify with one but not with another! We suggest you talk to your independent life insurance agent. An independent agent will have multiple companies available and will know the slight differences from company to company to help you get your policy with the right carrier for your situation.
- When your are ready, your agent will help you complete the application.
- You will have to answer a number of medical questions. If your answers are all "No" answers then you have passed the first hurdle.
- As you know this is no medical life insurance, so there isn't a paramedical exam After you sign the application, your agent will forward it to the insurance company.
What happens after I fill out the application?
- The insurance company will check the Medical Information Bureau which may have information related to any past life insurance applications you have made. They will check a prescription database to see that you listed all of your medications on the application.
- Many companies also require that you have a phone interview on a recorded line where they will ask you the same questions as are on the application. Once again, your answers must all be "No". All of this information will go to the underwriter who will then review your application.
- At this point, your application may be approved. The underwriter may ask for clarification of an answer if there is a discrepancy between your application and the database checks. Or finally, your application may be declined if the database checks or your answers on the interview disqualify you.
What if I am approved?
Great! Your agent will get your policy and once they insure that it is correct, they will deliver the policy to you. You will most likely have paperwork to sign and if you haven't already paid the first premium, you will do so now to put your policy in force. As long as you make your payments on time the insurance will remain in force and the insurance company cannot make any changes to your policy even if your health changes and you become uninsurable.
What if I am declined?
The good news is there are options....
- Your agent may be able to find you a company that will approve you based on the same information because they ask different questions on their application.
- If you can't qualify for a no medical life insurance final expense policy you can still purchase a guaranteed issue policy. This is another type of no medical life insurance. It is available to anyone, however, during the first two years it only pays back your premium and interest if you pass from a medical condition. (It pays the full face amount if you pass away due to an accident.) After the 2 year period, it pays the full amount in the event of your passing.
The Bottom Line
There are many different companies offering no medical exam life insurance policies for final expeses. Have your agent find the lowest cost policy for you and you and your family can rest easy.