4 Types of No Medical Exam Life Insurance for Millennials

iQuanti: Traditionally, a life insurance application requires you to take a medical exam. This drags the application process out and can impact premiums. Plus, some applicants may feel that medical exams are invasive or inconvenient. In fact, research from LIMRA shows that over half of life insurance customers prefer to skip the medical exam.

No-medical-exam life insurance policies let you apply for a policy without the exam. You instead submit the usual application and skip the exam entirely, streamlining the process and alleviating privacy concerns. With that in mind, this article will dive into some of the best life insurance with no medical exam for millennials.

1. Term life insurance

Term life insurance lasts for a fixed period of 10 to 30 years, depending on your choice. However, premiums are typically less expensive than permanent life insurance policies. Some term life insurance policies traditionally require a medical exam, but many insurers may offer no-exam term policies.

A term life policy can be one of the best life insurance options with no medical exam for millennials. It helps you minimize your premiums without losing out on the death benefit, so you have more money for your other expenses. But keep in mind that you risk outliving the policy. 

2. Whole life insurance

Whole life insurance can cost more than term life insurance but lasts for life. It also adds a cash value growth component you can use to build wealth. A portion of each premium goes into this component and grows tax-deferred at a fixed rate. When you accumulate enough cash value, you can withdraw or borrow from it with favorable terms. If you surrender the policy you receive the cash value minus surrender charges.

Whole life insurance can be an excellent policy for millennials who want a savings element and don't want to worry about outliving the policy. Plus, getting the policy now can help you secure lower premiums. 

3. Guaranteed issue life insurance

Guaranteed issue life insurance guarantees approval, as the name implies. These are smaller whole life policies — they offer less coverage than a traditional policy, but premiums are typically lower, and they still come with the cash value component.

Guaranteed issue life insurance often comes with a waiting period, or a lockout period, of one to two years. If you pass away during this period, your beneficiaries may only receive a refund of the premiums you paid instead of the death benefit. Either way, guaranteed issue life insurance's low premiums and guaranteed approval make it great for millennials on a budget who want quick life insurance.

4. Simplified issue life insurance

Simplified issue life insurance is a type of small whole life insurance policy, like guaranteed issue life insurance. That means it offers lifetime coverage and a cash value growth component. The application process includes a few health questions but is simpler than a traditional life policy. Death benefits and premiums tend to be higher than guaranteed issue life insurance but lower than traditional policies.

Busy millennials who want to protect their loved ones and build cash value while saving on premiums may benefit from simplified issue life insurance if they don't need a large death benefit.

Skip the medical exam with these 4 life insurance policies

Overall, no-exam life insurance policies can work well for people who need coverage fast or find medical exams invasive and inconvenient. The best part is that there are tons of options available. 

Term life insurance could work well for those who need maximum coverage on a budget and don't mind the idea of the policy expiring. Whole life insurance could be better if you need significant lifelong coverage and a cash value growth component.

Meanwhile, simplified issue life insurance might be your best bet if you don't need as much coverage and want to cut costs. And if you want maximum approval chances and can afford to wait for one to two years, you may consider guaranteed issue life insurance. Once you have settled on the best life insurance policy for your situation, gather quotes from multiple insurers to compare costs and get the most coverage for your budget.

Source: iQuanti