Exam vs. No Exam Life Insurance
Should you take an exam or not? Here is a checklist to help you decide.
When taking an exam may be the right choice:
- Your health is excellent and you have no other risk factors such as dangerous hobbies, recent DUI, etc. If you can be rated the best rate class (above Preferred) with a policy that requires an exam, you will most likely save money with the policy that requires an exam.
You know your blood pressure and lab results will turn out normal. If you have any doubts, you may pay less going with a policy that does not require an exam, rather than take an exam and find out you have high cholesterol, diabetes, or worse.
You don't mind the insurance company ordering your medical records. Policies that require a paramed exam usually open the door for the insurance company to order your medical records, too. You have at least a month before you need the coverage. It takes much longer to get a policy that requires an exam, than it does to get No Exam life insurance. With multiple health conditions, be prepared to wait up to five months for your policy to go into effect.
When NOT taking an exam may be the right choice:
- You fall into the Preferred to Table 4 range for life insurance that requires an exam. This includes people who have type 2 diabetes, are overweight, etc. Sometimes you can actually save money by taking a policy that does not require an exam.
You cannot qualify for life insurance that requires an exam. No Exam insurance is made for people of ALL types of health. If you cannot get a medically underwritten policy, you are almost sure to be able to get some sort of nonmed policy.
Your time is valuable and you could make more by working during the time it would take to deal with exam and other underwriting requirements, than to pay a little extra for No Exam life insurance.
You would like to get the policy as quickly and easily as possible. Nothing beats nonmed life insurance for speed and ease. Most No Exam policies go into effect within 2 weeks, and some as short as 2 hours.