Freelancers lead fast-paced lives, and taking time off from work to fill out a lengthy life insurance application and undergo a medical exam can seem daunting, to say the least. On the other hand, going without life insurance is unthinkable as well. Life insurance is the only way to ensure that your loved ones will be taken care in case the worst happens to you.
For freelancers who don’t get group life insurance from work, having some sort of coverage is crucial. If you’re a busy freelancer who doesn’t want to take time off from work but also doesn’t want to remain uninsured, no exam life insurance can save time and hassle.
No exam life insurance offers quick approval, usually in a matter of days or even immediately. That’s a big step up from traditional life insurance policies, which take between 4 to 8 weeks to be approved or denied by insurers. Plus, certain policies offer up to $1 million in coverage.
You may have heard that no exam life insurance is very expensive, and it’s true, that used to be the case. Even today, there are some types of no exam life insurance that are costly. The kind that’s best for freelancers, however, offers competitive rates that are comparable to those of traditional life insurance. Don’t want to take our word for it? Get a free quote here and see for yourself.
What Kind of No Exam Life Insurance is Best for Freelancers?
There are two main types of no exam life insurance: simplified issue and guaranteed issue. When people talk about no exam policies whose prices are through the roof, they’re referring to the latter.
Guaranteed issue life insurance is a wonderful product for certain people. It offers guaranteed approval to anyone who applies, no health questions asked. For someone who has very serious medical issues and can’t get approved for any other type of policy, guaranteed issue can be a lifesaver. For others, however, who don’t have serious health issues and can qualify for other types, guaranteed issue should not be their first choice.
This is because guaranteed issue life insurance comes with very high monthly premiums. Coverage is also limited to $50,000. Both of these drawbacks come from the nature of the policy — since insurers don’t know any information about the applicant, they have to find other ways to cover their risk. Charging high prices and limiting coverage mitigate the risk that the insurer takes upon itself.
Simplified issue is the type of no exam life insurance that’s best for freelancers who don’t have major medical issues. As a type of term policy, it’s sold in increments of 10, 15, 20 years, etc. Once the term is over, the coverage ends.
These policies include a short health questionnaire as part of the application, much shorter than the megillah required for traditional life insurance policies. In some cases, a brief phone interview is required. In the past, this is as far as insurers got — they did what they could with this information and calculated monthly premiums accordingly. That’s why prices were fairly high.
Today, however, technological advances have given insurers an easier and more accurate way of collecting information about you. They do it through AI. AI algorithms gather electronic data about applicants in a matter of seconds, including previous life insurance applications from the MIB, driving records from the DMV, pharmacy records, and credit reports. Applicants give permission to insurers to collect this information when they apply.
In this way, insurers can better assess the risk they’re taking on by insuring you. They can also minimize the time required to apply and do away with the medical exam entirely. And finally, they are able to offer competitive rates and coverage up to $1 million because their underwriters have plenty of health and lifestyle data to review. The more the insurance company knows about you, the better your chances of getting accurate rates. Of course, the healthier you are, the lower your rates are likely to be.
Life Insurance and Small Business Loans
In addition to needing life insurance to provide coverage in case of disaster, freelancers have a unique reason why no exam life insurance can come in handy. Freelancers who want to take out a small business loan are required to have life insurance. If you need the loan asap, you can’t afford to wait 4 to 8 weeks for a traditional life insurance policy. Simplified issue, on the other hand, can be acquired in just a few days, which means you can secure the loan you need when you need it.