If you have decided to get a no exam life insurance policy, you should also be aware of its various types. In this article, we have summarized the types of no exam life insurance plans to help you make an informed choice.
Simplified issue life insurance
This is the most common type of no exam life insurance. Even though it involves no form of medical examination, it is more difficult to get than the other no exam life insurance policies. When you apply for this plan, your life insurance company will go through your medical and personal records to ensure that you have a clean bill of health. This underwriting process could last from days to weeks. Once you are qualified for this policy, you are entitled to coverage that costs $250,000 to $400,000, depending on the life insurance company.
Guaranteed issue life insurance
This is the life insurance for individuals that have been rejected from other types of life insurance plans. It requires virtually no questions and exams. As long as you are deemed uninsurable, you can qualify for guaranteed issue life insurance. In addition, depending on the life insurance company, your coverage limit is set between $10,000 and $25,000.
Graded death benefit life insurance
If you do not like guaranteed issue life insurance, then graded death benefit might be the one for you. To qualify for this plan, you will only be asked some common medical questions. It requires no physical checkup or underwriting. However, you should note that graded death benefit does not provide the complete death benefit coverage at once. It only allows your death benefits to grow with each passing year.
For instance, your graded death benefit will pay out 10% in the first year, 20% in the second year, 30% in the third year, and so on. Depending on the life insurance company you choose, you should expect the increment to go on for 2-3 years. The coverage limit for a graded death benefit is placed at $50,000.
Level final expense life insurance
This type of life insurance plan is also known as a burial policy. It is mainly for those who want money to cover expenses related to their funeral. To qualify, you will be asked to fill out an easy questionnaire. The limit of this insurance coverage is usually capped at $50,000 to $100,000.