No medical exam does not mean no questions

Simplified issue versus guaranteed issue

A simplified-issue application generally uses health questions rather than a medical exam. Your answers may affect eligibility and price. Guaranteed-issue coverage typically skips health questions, but may cost more for a given benefit and may limit benefits during an initial period.

Neither type is right for everyone. Ask the insurer or agent which category a specific offer belongs to, what information is required, and when the full death benefit begins.

What is a graded benefit or waiting period?

Some policies pay a reduced amount, often related to premiums paid, if death from certain causes happens in the first policy years. Many ads refer to a “two-year wait,” but the length and exceptions differ by contract. Accidental-death treatment may differ too. Read the actual policy rather than assuming every no-exam plan has the same rule.

A waiting period is not the same as the time it takes an insurer to process a claim. Before you apply, ask exactly what a beneficiary would receive if death occurred in year one or two, and what changes afterward.

Questions to ask before you sign

Request a written explanation of premium amount, benefit amount, exclusions, graded-benefit schedule, and what happens if you miss a payment. Answer application questions truthfully: incorrect information can affect a claim under applicable policy and state rules.

• Is a medical exam required, and are there health questions?
• Is the full death benefit available from day one?
• What would be paid during any graded-benefit period?
• Can the premium or benefit change, and under what conditions?

Compare the whole policy

A policy without an exam may be convenient, but the most useful comparison includes coverage timing, price, long-term affordability, and the insurer’s written terms. Your state insurance department can help with questions about a policy or an insurer.