As a senior or an elderly person you know how important it can be to have life insurance at this point in your life. However one of the biggest reasons seniors don’t have coverage is because they feel they can’t get the coverage because they won’t pass the medical exam.
In fact I experienced this first hand with a client of mine a few years back when I was showing her a few life insurance options. The truth is she could have probably got some sort of coverage even if it were an AARP no medical exam life insurance policy. So in this article I’m going to cover the advantages and disadvantages of no medical exam life insurance for seniors.
No Exams Just Questions
The first thing to know about these policies is that you won’t have to pass any medical exams such as blood test, saliva samples, and physicals. For seniors this is a big deal since they are much more prone to diseases, and accidents. In fact, as a former insurance agent I can tell you first hand that seniors will have to jump through a lot more hoops than someone in their 20’s or early 30’s.
For some this can just be quite overwhelming, this is why no medical term life was created. To give those who didn’t want to go through all the issues and problems medical exams gave. On the other hand though just because you don’t have to do any sort of medical exam doesn’t mean you won’t have to answer any questions.
For example, life insurance policies sponsored through the AARP are all no medical exam life insurance policies. In fact, with the AARP plans you only have to answer 3 medical questions in order to get accepted. However, I should note that underwriters can be very picky in these instances to accepts someone.
The next thing you should consider is the coverage that a no medical life insurance policy will allow you to get. In most cases they will only allow you to get a $100,000 in coverage or less. On top of that the older you get the less coverage you will typically be allowed to get.
In fact, some policies sponsored through the AARP will only allow you to keep the coverage until age 80 while others will allow you to keep it permanently. It just matters on the type of plan and the amount of coverage. For example, the term policies with the AARP will allow you to get up to $100,000 in coverage but only allow you to keep it until you turn age 80.
On the other hand their permanent protection plan will only allow you to get $50,000 in coverage and you will be able to keep it for as long as you need it. Then their is the guaranteed acceptance program which will guarantee you coverage no matter what your condition as long as you want but it will only give you up to $15,000 in coverage.
The point is with life insurance with no medical exams the more coverage you want and less information you give the harder it will be to get. This doesn’t mean it’s impossible to get but just be aware it may be tougher. If you would like to know how much you should get use the calculator below to see exactly how much you should have.
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Up until this point these policies look pretty good, you don’t have to do any medical exams and you can get up to $100,000 in coverage. However, their is one major downside you should see and that is the cost of the monthly premiums.
The first quote I’m going to show you is a quote I ran with the AARP for a $50,000 policy for a 66 year old man. Take a look below.
With this policy you would have you could get a level benefit term life policy or a permanent life insurance policy. Now take note of the premiums, the level term policy runs around $144 a month while the permanent policy runs $296 a month.
Now let’s look at quote from a traditional life insurance company.
Now take note of the prices offered by these two companies. The policies offered through the traditional life insurance company are far cheaper than the ones offered through the AARP for the no medical life insurance exams.
The reason for this is because with less information for the insurance underwriters to go on and since they are not doing any medical exams you will certainly pay far more than if you did do a medical exam. So the point is no medical exam life insurance for seniors can be extremely expensive so check out your other options first before signing on the dotted line.
Have you signed up for a no medical exam life insurance policy? We would love to hear your story so feel free to share your thoughts, comments, questions and tips below.