Let’s give a few minutes to the subject of simplified issue life insurance , aka no exam life insurance. If most life insurance companies ask a litany of health and background questions and require an exam with a full blood and urine workup, how can another ask just a few questions and issue policies with no exam at all? The easy answer is price, with simplified issue having only one rate class which you qualify or get declined for based on the questions they do ask, or you get declined. That rate is on average about three times higher than the best rate you can get if you go through a full application and exam, but for someone young it might be worth the lack of invasion to just get it done and move on.
Another thing to keep in mind is that even though no exam life insurance doesn’t do an exam and only asks a few questions, and even if you answer no to the health questions, you can still be declined. These companies do check the Medical Information Bureau, MIB. MIB is a safety net for health and life insurance companies who are members to check and see if any derogatory health information has come up on other life or health insurance applications. While MIB doesn’t hold information about the end result of an application, they do note lab results or any information that came from your medical records through a previous application. If your cholesterol was high on a previous insurance exam it would be noted in the MIB so you can’t then apply with a simplified issue life insurance company without them knowing that your cholesterol was high. If you had some health issue, sleep apnea for instance, in the past that wasn’t asked on a no exam application, but did come up during a previous life or health insurance application either through their questioning or review of your medical records, you would likely be declined based on that even though it wasn’t asked on the no exam application.
Bottom line. It’s out there and while it’s not something that can be used to plug holes in your life insurance boat, it can be a great way for those 25 and under to check that off their to do list and move on. If you have questions or would like to compare quotes between no exam and fully underwritten life insurance with an exam, call or email direct. My name is Ed Hinerman. Let’s talk.