Benefits Of Non-Medical Life Insurance?
- Non-medical life insurance performs the same function as traditional life insurance, but the application process, cost, and coverage options are much different!
- Not everyone should have a non-medical plan, but especially for those who may struggle to get approved for a traditional plan, non-medical life insurance provides many benefits, including faster coverage without the medical exam.
- Everyday Life Insurance offers smart non-medical life insurance policies with even more benefits that automatically lower your coverage and premiums over time to reflect your real life circumstances!
Life insurance is designed to give financial protection to your dependents in case you pass away unexpectedly. You pay premiums every month to an insurance company in exchange for a certain amount of coverage; if you die while you the plan is still active, your insurance company pays out that amount to your dependents, but if you outlive your policy, they get to keep the premiums you’ve paid. Because paying out policies costs the insurance companies significantly, they will assess how much risk they’re taking on by insuring you in a process known as “underwriting” before issuing you a policy.
Underwriting involves determining how healthy you are, whether or not you’re a good driver, and other factors that could contribute to a lower life expectancy. One step that is usually part of underwriting for traditional life insurance plans is a medical exam. For most people, this isn’t a big deal, but if you have chronic conditions or a troubling family medical history, getting approved for a policy – or for an affordable policy – can be difficult. If you are denied coverage and something happens to you, your family could be left in a scary financial situation, without the financial or caregiving support you provided.
If you’re nervous about this happening to you, applying for non-medical life insurance may be the best option! Non-medical plans are not fully underwritten products, so you will not have to take a medical exam. You may not even have to answer questions about your health, depending on the type of non-medical plan you choose.
Benefits of non-medical plans
They offer fast coverage.
Getting approved for a traditional life insurance policy can take a long time – up to six weeks! – because of underwriting. The medical exam has to be scheduled and performed, the results and lab work have to go through and be assessed by the appropriate parties, there’s paperwork involved, etc. In some cases, though, waiting six weeks may not be possible. Perhaps you’re going on a trip out of the country without your kids, and need coverage in a few days. Perhaps you’re applying for a loan for your business and need collateral quickly. Whatever your personal or professional reason is for wanting coverage immediately, getting approved for a non-medical life insurance policy is much faster. Some insurers will approve you instantly or within 48 hours!
They’re highly convenient.
If your life is as busy as the average American’s, or if you have young kids, then trying to squeeze a medical exam into your hectic schedule can be a hassle. It may even make you feel uneasy in the current pandemic climate, or if you have a fear of needles like 20% of the population does. Because non-medical insurance plans don’t require a medical exam, you can avoid all of that stress and get coverage simply and easily.
They give approval even for people in high-risk categories.
Non-medical life insurance isn’t just for people in poor health, although that is the primary reason why people search and apply for this type of policy. It’s not just the medical exam that gets skipped in a non-medical life insurance application, but the entire (or partial, depending on the plan type) underwriting process. This means that people with dangerous jobs or hobbies, people with resolved criminal records, and older adults who would otherwise have a hard time finding life insurance can still get quality coverage.
They may not be as expensive as you think.
Because non-medical life insurance policies don’t require a medical exam, they take on more risk to cover you, and that will be reflected in the price of your premium. However, over half of the population estimates the cost of life insurance at three times the actual cost, so whatever number you are picturing in your head for an “expensive” non-medical plan will likely be much lower. One article estimated the cost of a non-medical term life insurance policy to be between $3.49 and $134.44 per month; your premiums will depend on where you live, your gender, your age, and how much coverage you are paying for. The older you are, the more expensive non-medical coverage will be. If you don’t currently have life insurance and think that a non-medical plan may be the right option, don’t wait any longer – get a personalized recommendation online via our Needs Assessment Tool or call us to speak with a licensed agent!
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Benefits of Non-Medical Insurance From Everyday Life
Non-medical life insurance policies from Everyday Life Insurance have even more benefits than convenience, speed, and approval for people in high-risk categories. Our plans were designed to be dynamic and automatically adapt to your changing life. See, most insurance companies offer one rate for one bulk amount of coverage that stays the same over the life of the policy. We offer a changing rate for a changing amount of coverage that decreases over time based on major life events, such as kids going to college, retirement, etc.
For example, say Jane is 30, with two young kids, and has diabetes. She may not be able to get approved for a normal term life insurance policy, but a non-medical plan may offer her $300,000 in coverage for a 30 year term and a $30 monthly premium. At first, this seems to be a good rate. She needs that much coverage or more because if something happens to her at this point in her life, her kids will need to be provided for financially for a long time! But what about in 15 years when her kids have moved out and she’s paid off most of her mortgage? She won’t need the same amount of coverage, because the people who depend on her don’t depend on her as much, and they won’t for much longer. It doesn’t make sense that she should still be paying for $300,000 worth of coverage at that stage!
If Jane had a comparative non-medical plan from Everyday Life Insurance, she may pay $30 a month for $300,000 at first, but after 10 years, her plan may phase down to $200,000, and after another 20 years, her plan may phase down to $100,000 (and her premiums would decrease accordingly). This approach could save her thousands of dollars over the life of her plan!
You can find out how much you could save by getting a personalized recommendation from our Needs Assessment Tool. It will only take a few minutes of your time and you don’t have to submit any contact information! Try it now.