$100,000 No-Medical Exam or a Fully Underwritten Policy?
As you start to look for life insurance quotes for a $100,000 term life insurance policy, you will notice that there are insurance companies that offer policies where no medical exam is required, and there are insurers who do require a medical exam before rating and approving your application for coverage. The first step of shopping for life insurance should be learning the difference between each type of plan.
Policies that do not require applicants to take a medical exam are more commonly referred to as no-medical exam policies, and they are designed for a unique demographic. While you would think that a no medical policy is a better choice than having an exam done, these plans are not always the best option for every applicant.
No medical policies typically come with higher premiums. However, the difference is not that significant.
Why are No Medical Exam life insurance policies more expensive? It’s because the insurer is taking on the risk of extending coverage to an applicant who may have unknown medical problems that have not yet been diagnosed. If you are young and in excellent health, you will receive low rates either way, but your rates will be a little lower if you complete the medical exam requirement.
For individuals who need their insurance issued quickly, are terrified of needles, or for applicants who are concerned about their weight or their vitals, choosing a no medical policy may be ideal. Having an exam can qualify you for Preferred and Super-Preferred rates, but there is a chance that the tests could uncover issues that will raise your premiums.
Weigh the pros and the cons of each option, and you can figure out which type of policy is best for your own unique circumstances.