Term & Whole Life Insurance With No Physical Required

A life insurance policy is a legal contract between you and the carrier. The carrier agrees to pay your family a predetermined sum of money if you die while the policy is still in force. Because life insurance presents a potentially significant financial liability for the carrier, these companies take great steps to fully evaluate and analyze the risk posed by each individual applicant.

Underwriting Categories

At the conclusion of the life insurance company’s evaluation of your application, your risk profile is placed into one of several preset underwriting categories. These categories indicate the level of risk you pose, as determined by underwriters, and your policy’s premium is adjusted accordingly. In certain cases, when the risk is too great, the carrier declines the application.

Paramedical Exams

One aspect of the methodology employed by underwriters to formulate a risk profile is the use of paramedical exams. These are brief physical examinations conducted by licensed medical personnel. An applicant’s height, weight, blood pressure and other measurements are notated, and samples of blood and urine collected for additional laboratory testing. If the exam itself, or subsequent fluid tests, reveal the presence of an ailment deemed too risky, the application is rejected.

Guaranteed Issue Policies

Having a life insurance application denied doesn't mean you can't obtain a policy. A number of specialized “guaranteed issue” carriers exist, providing policies specifically designed and specially priced for consumers who can't otherwise obtain coverage through traditional channels. Both term and whole life policies are available on a guaranteed issue basis, and the provisions and features of the products are often no different than traditionally issued contracts.

Graded Benefits

Unfortunately, these policies typically have much lower maximum benefit amounts, and significantly higher premiums. Guaranteed issue companies must price products based on the assumption that their customers represent excessive risk and liability. In addition to higher premiums, carriers often limit or restrict the payout of benefits for the first few years after a policy is issued.

References

Insure.com: The Basics of Guaranteed Issue Life Insurance
Financial Web: What Is a Graded Benefit Whole Life?

Resources (Further Reading)

Life Insure: Medical Guidelines
Insure.com: 8 Ways to Find Life Insurance When You're Uninsurable

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This article is a Twisted Nonsense Exclusive! (04/03/2011)