Life insurance has, and will always continue to be a solid foundation to anyone’s financial plan. Replacing a lost one’s income, or to help your family continue to experience their current lifestyle has always been a couple of examples as to why people explore life insurance coverage.
As a life insurance agent over the past 12 years, I’ve almost always recommended people to try and obtain the ‘lowest’ possible priced policy. That is until recently.
Coronavirus or Covid 19 has changed the world, and impacted almost all phases of life. This includes the life insurance industry as well. Generally, majority of life insurance providers would require a person to complete a medical exam. This is referred to a paramedical examination.
What is a Paramedical Examination?
A paramedical examination is a term given when a life insurance company requires you to meet with an examiner. Usually, this appointment would take place at your house, place of business, or the local examination office.
A license nurse would measure your height and weight, and ask you basic health history questions. In addition to this, they would also collect a blood and urine sample that would be sent to a third party lab for testing. All of this information would help determine your eligibility for coverage, with your particular life insurance carrier.
Due to the current environment with Coronavirus, many exam offices are closed. And even if you could meet with an examiner, would you want to have a stranger visit you in your home? Most likely not.
Can you Still Obtain Coverage?
In most cases, you would still have options for life insurance coverage. Carl Babers of Burial Insurance Pro says “many people may qualify for simplified issued policies. These types of policies are generally smaller in coverage. Possibly $25,000 to $250,000 in coverage. Many people, especially seniors are getting in the buying act. They are buying burial insurance policies in record numbers, as they are concerned about covering all their final expenses.
For other types of consumers, you may have a need for policies that offer more of a death benefit. Companies like John Hancock, and Banner Life, may consider coverage for up to $1,000,000 without completing an examination. Companies understand that we are in a ‘unique’ environment, and are trying to adapt and make policies available to the masses.
While this all sounds great, for some people they will not qualify for a no medical exam policy. If you have a history of heart attacks, strokes, or possibly Diabetes, you may not be approved for coverage. Martin Stocker of Diabetes 365 mentions “certain life insurance providers simply will not offer coverage if you are a sub-standard risk. This includes almost anyone with Type 1 or Type 2 Diabetes. Having Diabetes and finding life insurance coverage currently is going to be challenging.”
What is the Best Way to Find a Non-Medical Exam Policy?
The best way to find out what your options for life insurance without an examination is to simply speak with an independent agent. Many online agencies are licensed in all states, and are able to work with you over the phone, and thru email.
After making contact with an independent agent, you can simply share with them your health profile, and what type of coverage you are in need of. Depending on the company you choose, you could be approved in 24 to 72 hours. Or in some situations, it may take up to two weeks for an underwriting decision.
While a non-medical exam policy hasn’t always been my number one option for my clients, in today’s world, it may be the only solution available. I can’t recommend it enough. With life insurance rates at all-time lows, now is the perfect time to lock in a new policy, with premiums that are guaranteed for a term duration that you select.
Article by Melissa Thompson. Thompson enjoys writing about a wide range of financial topics. In addition to writing about the financial services industry, she loves spending time with her daughter, Madison, and pug named Snuggles.
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