Facts about life insurance without a health exam
2. Getting a policy can be more convenient
Periodic medical testing of life insurance policies may require a trip to testing facilities or a visit by the tester to the policyholder. Both can create inconveniences for busy millennials. However, since no-exam life insurance allows applicants to skip the exam, they don’t have to worry about these inconveniences. Instead, they can complete the entire process online.
3. Premiums can be cheaper
Some no medical exam life insurance policies are smaller than traditional life insurance policies. This means the death benefit is lower, but the premiums can be cheaper. Therefore, millennials looking to minimize spending could benefit from this type of policy.
4. Policyholders can build wealth
Unaudited life insurance policies still receive the same cash value growth component as traditional perpetual life insurance policies. A portion of each premium flows into this growth component, which then grows at a fixed interest rate in the case of life insurance policies that do not require examinations. This helps millennials build additional wealth earlier in life while maintaining insurance coverage. The policyholder can withdraw from its cash value or borrow against it if it is large enough. If they surrender their policy, they will receive the cash value less surrender fees.
Types of life insurance without medical examination
Policyholders who want life insurance without a medical exam should consider the following types of insurance:
Simplified edition life insurance
Simplified Issue Life Insurance is a small permanent life insurance policy for healthier individuals who do not wish to take the medical exam and need life insurance immediately. The insurer will still require a health questionnaire for underwriting, but will not require a medical examination.
Simplified life insurance policies typically have higher death benefits than other audit-free policies, but lower death benefits than traditional life insurance policies. As a result, millennials may find simplified life insurance helpful when they want to skip the check but need more coverage.
Life insurance with guaranteed issue
Guaranteed life insurance is a policy that has no medical exam or questionnaire. Guaranteed life insurance policies also typically have a two to three year vesting period. If the policyholder dies during the lockup period, the beneficiaries can recover the policyholder’s premiums but not the death benefit. Still, this can be a good potential option for people who want to avoid submitting health information and save on premiums.
Consider life insurance without a medical exam
Millennials do not need to undergo a medical exam to purchase life insurance. No-test life insurance policies can offer more convenience, faster approvals, and lower premiums without sacrificing the wealth-building power of the cash value growth component.
Healthier millennials can opt for simplified life insurance because it still includes a health questionnaire. Those who wish to skip the questionnaire can consider guaranteed-issuance life insurance to prevent medical issues from compromising coverage. Regardless of the type of policy, millennials should obtain multiple quotes to get the most coverage for their money.
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