6 Reasons to Consider Examination-Free Life Insurance

There's no one-size-fits-all life insurance. For some, exam-free is the way to go.

Traditional life insurance policies typically require a medical exam. It's a way of giving the insurance company a peek at your overall health and lifestyle before approving your application and quoting you a price. Some insurers offer exam-free policies, meaning there's no medical exam involved. While an exam-free policy costs more than traditional life insurance coverage, it's still worth considering for some people.

1. You need coverage right away

Let's say you're going on a safari in Africa and leaving young children at home with their grandparents. You worry about what would happen to your kids if a hippo knocks over the truck you're riding in, and a lion eats you. Maybe you don't have life insurance, or your current policy is too small to care for your children after you're gone.

There's no set amount of time it takes to secure a traditional life insurance coverage, but it's sure to take longer than a no-exam policy. After all, with a no-examination policy, you don't have to schedule an appointment with a medical provider and wait until you can be seen. You don't have to worry about how long it will take for lab test results to arrive.

If you need a policy fast, exam-free may be the way to go.

2. You're young

Maybe you're young and single and don't see much need for a policy just yet. Still, if you'd like to leave enough money to pay for a funeral or leave to your parents or siblings, purchasing an exam-free policy is one way to go.

3. No one counts on your income

If the only person who counts on your income is you, buying a big, traditional policy may not make sense. Let's say you want to leave your car to a sibling when you die but still owe a balance on it. A smaller exam-free policy could be just what you're looking for.

One caveat: Just because you don't have anybody counting on your income right now does not mean you won't one day in the future. The earlier you buy life insurance, the less expensive the policy will be. In fact, you may be surprised by just how cheap a term life policy can be.

4. Your job or hobby is dangerous

If you string power lines or tame lions for a living, insurers know you have a greater than average risk of dying on the job. The same is true if your idea of fun is hang gliding, mountain climbing, or cliff diving. If you find it tough to land traditional coverage, you may want to try a no-exam policy.

5. You have a health condition that would make it more expensive to buy traditional coverage

If you have a high-risk health condition, it may pay to compare the premium cost of a no-exam policy to that of traditional coverage. It's possible that the no-exam policy will end up costing less once an insurer bumps up the price of its traditional policy.

6. You're too old for a traditional policy

Once you get past a certain age, it can be tough to find an insurer willing to write a life insurance policy (the exact age varies by the insurance carrier). And the older you are, the higher the cost of a new life insurance policy. This is another situation in which it can pay to compare the quote on a traditional policy to the quote on exam-free life insurance.

Whether you secure life insurance by taking the traditional route or opt for an exam-free policy, life insurance can represent a solid piece of your overall financial plan.