The Scoop on No Exam Life Insurance - Simplified Issue Life Insurance

Underwriting is the process that life insurance companies go through when you apply for a policy. An underwriter is a trained professional that reviews your medical, family and personal history to determine whether you qualify for life insurance and how low of a life insurance rate that you should pay. Also, as part of the underwriting process the life insurance company will take blood and urine samples and run physical tests to determine your current health and try to find out whether you have any factors that may lead to health problems in the future.

Some life insurance companies offer products at lower face amounts that skip many of the physical underwriting steps. These products are usually referred to as simplified issue life insurance (other names include no exam life insurance, no medical life insurance, no physical life insurance). There is also usually a shorter application and the policy usually takes less time to issue.

Pros for Simplified Issue Life Insurance or No Exam Life Insurance:

No medical exam,
Shorter application, and
Instant approval for qualified applicants

Cons for Simplified Issue Life Insurance or No Exam Life Insurance:

More expensive than similar amounts of fully underwritten insurance,
Lower face amount restrictions ($150,000 is the maximum for most companies with $300,000 being the highest Iíve seen)

Some would say that simplified issue life insurance is for unhealthy people or those who can't qualify for fully underwritten life insurance. This is simply not the case. There are many people that try to take advantage of simplified issue life insurance by lying on their application and trying to hide their health problems. I would strongly urge you to avoid doing this. Of course, there is the moral issue and legal issues behind committing insurance fraud to consider.

Also, just because the life insurance company does not complete a full examination before they issue the policy, it does not mean that they will not dig through your medical history and verify the accuracy of your answers on your application after you die. In most states, life insurance companies have the right to investigate the accuracy of your application if you die within two years of purchasing the policy. When you sign the policy, you give the company the right to investigate all of your personal records (medical, government, employment, etc). Just because they streamline things upfront doesnít mean they arenít going to do everything in their power to avoid paying a $100,000 life insurance claim.

I hope you enjoyed my article. If you are interested in purchasing or learning more about no exam life insurance or simplified issue life insurance, then please visit today.