Being a freelancer comes with a great deal of flexibility and freedom. On the flip side, it also comes with responsibilities that salaried employees don’t have. For example, many employers offer a benefits package that includes a retirement plan, health insurance, and life insurance. While many freelancers are fastidious about taking care of the first two, when it comes to life insurance, the natural instinct is often procrastination.
Life insurance can seem like an unnecessary financial burden to a freelancer who already needs to pay into his own pension fund and health insurance. The fact is, however, that life insurance isn’t a luxury, it’s a necessity. It’s the only way to ensure that your loved ones will be taken care of in case the worst should happen.
The Time Challenge
In addition to adding another payment to your monthly bills, freelancers face an additional challenge when it comes to getting life insurance. They don’t exactly get paid vacation days like employers, so taking the time to apply for life insurance, undergo a medical exam, and wait months for approval can be a daunting enterprise. Some freelancers, in fact, can’t afford to take time off — if they don’t work, they don’t earn.
In this situation, no medical exam life insurance is a good option since it provides coverage for your loved ones just like traditional policies. Where it differs, however, is that it doesn’t require taking time from your precious work to fill out lengthy questionnaires and undergo blood tests and a medical exam.
If you’re a freelancer who is considering getting life insurance without a medical exam, read on to find out more about what it entails.
Everything Freelancers Need to Know About No Exam Life Insurance
The insurance advisors at Sproutt have compiled a comprehensive list to give you the information you need about no exam life insurance. Sproutt is not affiliated with any insurance carrier, so you know you are getting unbiased and reliable information.
Here are the main things to know about no exam life insurance:
Definite Coverage
There are different types of no exam life insurance (more about that later), but the main thing is that each type can give you the coverage you need. Whether it’s half a million dollars or just enough to cover funeral expenses, no exam life insurance will provide coverage.
Monthly Premiums
There are several factors that determine the cost of an applicant’s monthly premiums:
- Age
- Gender
- Duration of policy (for term life insurance)
- Amount of coverage
- Smoker/non-smoker
Fortunately, health is not one of the major considerations that determine the cost of life insurance without an exam. The only downside is that premiums tend to be more expensive than traditional premiums because the insurance carrier is taking a greater risk since it doesn’t know your medical situation.
Anyone Can Apply
You don’t need to fulfill any special requirements in order to apply for no exam life insurance. Whether you’re a freelancer, salaried employee, small business owner — it doesn’t matter. In the same vein, it doesn’t matter what the state of your health is. Almost everyone can get approved for no exam life insurance.
While anyone can apply, there are certain people who tend to prefer no exam life insurance over traditional policies. This includes people who:
- Don’t have time to go to the doctor
- Are scared of needles
- Need life insurance fast
- Need to take out a business loan
- Have preexisting medical conditions
- Have a dangerous job or hobby
Approval in Days
Unlike traditional policies that take weeks or months to be approved for, no exam life insurance applications are typically approved within days of submission. This is because there is little to no underwriting involved, which speeds up the process and gets you the coverage you need as fast as possible.
Plenty of Options
Just like traditional life insurance policies, no exam policies come in many different forms. There are four main types:
- Simplified Issue: A term policy that offers coverage up to $500,000 or $1 million, depending on the carrier. Some medical information must be provided but no medical exam is required.
- Guaranteed Issue: Anyone can be approved for this, which is why it’s guaranteed. No health questions asked just whole no exam life insurance that provides up to $25,000 in coverage.
- Graded Death Benefit: Almost everyone can be approved for this type, which offers up to $50,000 in coverage. Some health questions are asked and the death benefit is graded, which means that if the policyholder dies within the first two years of purchase, only a percentage is paid out. If the policyholder dies three years after purchase, the whole amount of coverage is paid out.
- Final Expense: Covers funeral expenses, which can range anywhere between $7000 and $12,000. People who don’t have children but don’t want the financial burden of a funeral to fall on other loved ones tend to opt for this type.
How to Choose a Policy
As a freelancer, there is no right or wrong type of life insurance, there is only the life insurance that makes sense for your particular situation. So before you do anything, assess your needs and how much coverage you need. If you don’t have time to go to the doctor’s office or if you need life insurance quickly, no exam life insurance is a good option.
