Calculate how much life insurance you need
A no-exam life insurance policy may not be able to provide the full coverage amount you need, especially if you’re looking to cover many working years or the years of raising a family.
Before you start getting life insurance quotes, calculate how much life insurance you need. A no-exam policy alone may not be able to provide sufficient coverage.
Know your chances before you apply
Getting life insurance without a long application process is appealing, but don’t jump into a no-exam life insurance application without understanding your chances of getting approved. Many no-exam policies require very good or excellent health for approval. A denial goes on your insurance record and could hinder future applications.
Don’t be surprised if you end up doing a more traditional application process, including a life insurance medical exam if you’ve had some health issues.
Look beyond the cost
Of course you don’t want to overpay for life insurance, but research more than cost. There are coverage options that can be very valuable long after you buy the policy, such as the option to convert term life to permanent life insurance. Also, look at whether there’s an accelerated death benefit, which gives you access to money from your own death benefit if you become terminally ill.
Be truthful on the application
No matter what type of life insurance you’re applying for, be thorough and truthful on the application.
“Pay attention to each question carefully and be ready to respond with information around specific medical conditions you have. Giving more detailed information will help streamline the process as well as get a more accurate underwriting decision,” says Tavan of Legal & General America.
Intentional misrepresentations can lead to application denials or, worse, denial of a claim after you pass away. Life insurance companies have many ways to verify application information. Technology on the backend allows them to verify data from additional sources.
Have a plan in case of a rejection
If the company rejects you for no-exam life insurance because of your health, don’t give up your life insurance search. If you need life insurance, you likely have other routes.
- Be prepared to go through a more traditional underwriting process that involves a life insurance medical exam.
- Work with an experienced life insurance agent who can identify insurers known to be more friendly to your specific health conditions.
- An experienced life insurance agent can shop around your application anonymously so that you don’t risk another rejection.
Looking for traditional term life insurance? See Forbes Advisor’s ratings of the best term life insurance.
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