Life insurance buyers frequently worry that their medical exam will affect their coverage limits and raise their monthly premiums. Thankfully, there are life insurance policies that don’t demand the prospects to have a medical exam to qualify for various coverage options.
As an insurance agent, it’s up to you to introduce no medical exam insurance to the prospects. These insurance policies are quite popular among seniors and individuals with poor health records. In no medical exam insurance plans, premiums are usually higher and coverage amounts are limited.
In this article, we’ll cover why life insurance typically requires a medical exam and how you can sell policies without this extra step.
Why Does Life Insurance Require a Medical Exam?
Most life insurance companies require medical examinations as it helps analyze health issues and detect illness. The exam enables insurance companies to assess the risk and set premiums during the underwriting process. For individuals with serious medical conditions, buying life insurance can be challenging. However, this may not be the case with no exam coverage.
A medical exam for an insurance policy is conducted by insurance companies at no cost to the buyers. Insurance providers send licensed medical professionals to the buyer’s home or workplace to perform a health check that takes about 30 minutes.
Applicants over the age of 50 or seeking higher coverage amounts may also undergo an EKG.
What is No-Exam Life Insurance?
Traditional life insurance policies require a medical examination to give insurance providers insight into your clients’ health conditions. An insurance company collects data related to height, weight, and blood pressure through an EKG and blood and urine samples.
As the name indicates, no medical exam life insurance policy is meant for individuals who want to bypass medical exams due to health issues or illness. Guaranteed issue or simplified issue life insurance policies are ideal for prospects who do not want to undergo medical checkups.
If your client is in good health, buying life insurance after undergoing a medical exam can get the buyers better rates and extended coverage options. However, if your client’s health record may raise their premiums, there are options. There are three popular types of life insurance policies that do not require a medical examination.
Simplified Issue Policy: When opting for a simplified issue policy, the policyholder doesn’t have to undergo a medical exam. A detailed health questionnaire, a medical history, and the medical records of your client’s family may be asked by the insurance company in order to evaluate eligibility.
Moreover, the premiums for simplified issue policies may be higher than traditional life insurance products with medical exams. This type of policy can be written for term life insurance policies or whole life insurance plans.
While selling the simplified issue policy, you should inform the prospective buyers about the consequences of not disclosing any health issues during the insurance application process. If the insurance company discovers anything at the time of payouts, it may lead to voiding the insurance, and the beneficiaries may not get death benefits.
Guaranteed Issue Policy: A guaranteed issue policy is a great alternative when preexisting health conditions or higher premiums prevent a buyer from purchasing a simplified issue policy. It requires the buyers to answer a few health questions related to medical history and health conditions.
Many guaranteed issue policies come with graded death benefits that imply if the policyholder dies between the first two years of policy issuance, the beneficiaries will get an amount equal to premiums plus interest. If the policyholder dies within two years of the policy’s issuance, the policy pays for credit card debts, final expenses, and more.
So, if the prospective buyer has a health issue that’s precluding the insurance companies from buying the life insurance, a guaranteed issue policy is the right option. However, the applicant needs to meet age requisites.
Employer-Sponsored Life Insurance Policy: If your client’s employer has an employer’s benefits package that gives them access to a group life insurance plan, this policy type is highly affordable. The employer-sponsored life insurance policy is free and doesn’t require a health checkup. You’ll want to check with your client to determine whether this is an option based on their current employment status.
The insurance coverage will often be set one to two times the amount of an annual package or a percentage of the applicant’s annual package. The limitation of employer-sponsored life insurance policies is that they remain active only as long as the applicant works with the employer.
Moreover, the employer-sponsored plans come with limited life insurance coverage amounts, and the employees may have to look for supplemental policies. This is one of the most hassle-free policies available in the market.
How to Sell Life Insurance Without a Medical Exam
A great presentation is the key to selling life insurance successfully. Being a life insurance agent, you must have an effective sales pitch. Make sure you use every bit of knowledge you have to provide a compelling presentation that will hook the prospect.
Whether you are selling a permanent policy, a term life policy, or a whole life policy, you need to stay updated with insurance industry guidelines. Let’s now learn about the most compelling ways to sell life insurance to your clients without a medical exam.
Connect with Clients
Spend time understanding why your clients may not want to get a medical exam. Learn how you can best help them achieve the coverage they need without one. Establish trust and connection with the prospect. Do not force your high-commission product on your clients; instead, listen to your client and suggest the best no-medical life insurance policy.
Collect Health Information
No-exam life insurance requires the collection of health information without the exam. Ask your prospect to answer medical questions about health conditions, family health records, and other relevant information. Inform your client to disclose everything to avoid any sort of misinformation, or else their loved ones may not receive the death benefits.
No-exam insurance can often be more expensive; you may need to discuss pricing options with your client. Prospective buyers are interested in the lowest life insurance quotes that provide the highest level of coverage. Customize the life insurance plans to accommodate your client’s insurance needs and requirements.
Regularly follow up on medical status and ensure plans are customized to clients’ current needs. Keeping track of the client’s lifestyle and living conditions will help you stay up-to-date and make any substantial changes to the policy if required. Listening to your clients post-sales will help you get the best ratings for your services and better leads.
Discover No-Exam Life Insurance Policies with iLife
Depending on the type of policy your client chooses, no medical exam insurance premiums will vary. A guaranteed issue policy, permanent life insurance policy, or whole life insurance policy will have higher rates than the term life insurance, which cannot accumulate cash value. The cost of a no-exam plan also varies based on how much life insurance coverage you get.
Being a life insurance agent, you want to offer the best insurance advice to your prospects.
Are they looking to buy the best life insurance policy with no exam options? Are they coming to you for assistance in comparing the best no medical exam life insurance policy? No matter what their goal is, you can seamlessly receive life insurance quotes from the best life insurance companies to share with your client — and iLife is here to help you.
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