500 000 life insurance no exam

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500 000 life insurance no exam

There are many life insurance companies that offer $500,000 life insurance policies without a need for a medical exam. The price will depend on your overall health and lifestyle. There are typically 3 categories that you will fall into. These are preferred, standard, and rated. I will include rates for all 3 and more in the above quoter so you can get an idea of what the price differences are. I will also include information about an express option where the underwriting and qualification is extremely easy and fast (72 hours avg turnaround time).

The last thing to note about $500,000 life insurance no exam policies is that some offer what’s called living benefits. These are also referred to as “accelerated death benefit rider” or “critical illness rider” which basically means if God forbid you’re diagnosed with cancer, HIV, have a heart attack, stroke, etc then you can request a portion of your life insurance benefit to be cashed out. You will receive a percentage of the $500,000 depending on the severity of your illness. For instance, say you are diagnosed with stage 1 cancer and require 6-12 months of radiation, chemotherapy treatments, etc. You will be out of work most likely. Well if you have living benefits with your life insurance policy, then they will most likely give you 25% of the $500,000 which would be a $125,000 check. You can use this to pay your mortgage/rent, car payments, food, pay bills, travel to hospital, see specialists, etc. Life insurance companies want you to focus on your health so that you can beat the cancer or whatever ailment you’re going through! Why? Well because it’s economics. They rather pay $125,000 and you live and continue making your monthly life insurance payments than die and they fork out $500,000! Therefore, I am including rates for policies that have this feature called living benefits and others that don’t.

$500,000 Life insurance policies with no exam are typically sought after by families with a mortgage and/or where the partners depend on each other’s income to maintain their livelihood. We need to show the life insurance companies that offer no exam programs what’s called “insurable interest”.

Insurable interest exists when an insured person derives a financial or other kind of benefit from the continuous existence, without repairment or damage, of the insured object (or in the case of a person, their continued survival). A person has an insurable interest in something when loss of or damage to that thing would cause the person to suffer a financial or other kind of loss. Normally, insurable interest is established by ownership, possession, or direct relationship. For example, people have insurable interests in their own homes and vehicles, but not in their neighbors’ homes and vehicles, and almost certainly not those of strangers.” (https://en.wikipedia.org/wiki/Insurable_interest)

Wikipedia has a simple description explaining what insurable interest is:

If you’re married it’s easy to show insurable interest for $500,000 life insurance no exam policies. However, if you’re not married, there is still hope. We wrote about this in another article “life insurance for unmarried couples”. Most no exam policies for life insurance are taken out as security vehicles to protect against a sudden loss of income. This is one of the most common justifications for life insurance called “income replacement”. Let’s delve a bit further to insure you get approved ASAP for your $500,000 no exam life insurance policy.

The U.S. Bureau of Labor Statistics has released its data using the fourth quarter of 2018. They concluded that the average weekly income for a full-time employee in the U.S.A. is around $900 per week. This averages out to $46,500 annually per individual. We typically use 10 years as a mark for income replacement for life insurance no exam policies. (Fiorillo 2019)

$46,500 x 10 = $465,000. Therefore, with inflation taken into account a $500,000 life insurance policy tends to fit the bill for the average American family.

Mortgage Protection: The average home purchase price in the U.S.A. is $235,000. The average mortgage monthly rate is $1030. First-time home buyers average purchase price was a bit lower at around $182,500. This is average of course. Obviously, the area matters tremendously. For instance, in San Diego the average home price was $586,000 while in Omaha, Nebraska it was $156,600. (Pritchard 2019)

Therefore, a $500,000 life insurance no exam policy is perfect for those closing on a home soon or have just purchased one! The half a million dollar policy will cover the mortgage, other debt such a vehicles, income replacement, and funeral expenses.

Vehicle debt: According to Kelley Blue Book the average price of vehicles has gone over $36,000 for the first time as has set a new high. The rising interest rates don’t help borrowers also. The credit is getting easier to approve as it’s being coupled with longer borrowing contract lengths. The average monthly price has ballooned to $551 per month. This is another item/debt to include when calculating insurable interest on your $500,000 life insurance no exam policy. (Bomey 2019)

Student loan debt: Do you need a $500,000 no exam life insurance policy to not only cover income replacement, mortgage, vehicle, but also any student loan debt you may have co-signed on? This has become a national phenomenon and it’s only getting worse. From the years 1999-2000 to 2015-2016 the debt for graduates has almost doubled at each level. For example, the average loan balance for those who completed a medical doctorate went from $124,700 to $$246,000 or a 97% increase in just 15 years! Ph.D’s outside of education went from $48,000 to $98,800 which is a 104% increase!

Percentage of graduate school completer’s with student loans %  20 %  40 %  60 % 80 % 100
Post Baccalaurette Certificate                   55    
Master’s     60    
Doctor’s Research   48      
Doctor’s Professional       75  
           

(https://nces.ed.gov/programs/coe/pdf/coe_tub.pdf )

Some more student loan data:

Dentists: 80% of dental school graduates have more than $100,000 in debt. In fact, the average amount for indebted dental school graduates was $285,184 in 2018. 40% of indebted graduates actually owed more than $300,000! So even if you have no mortgage yet but co-signed on some student loans, you can justify the $500,000 amount on your no exam life insurance policy. (https://www.adea.org/GoDental/Money_Matters/Educational_Debt.aspx)

Standard Rates: This is by far the most common rate given to people applying for life insurance without a paramedical exam. Since life insurance companies are taking on more risk by not ordering a medical exam, the rates are typically higher than if you were to take a medical exam. However, this goes both ways. Some people think they are healthy, then take a medical exam, and the life insurance companies rate them worse than standard and inform them of bad news such as; that their cholesterol is too high (maybe they’ve been eating a lot of fast food lately), sugar is borderline diabetes type 2 (too many sweets), or liver enzymes are elevated (maybe drinking too much wine/beer), etc. So they were better off going with a no exam life insurance policy in the first place as standard rates are reasonable and average.

$500,000 life insurance no exam rates no living benefits by age (nearest birthday) 

10-year term rates for males non-tobacco and tobacco

Male Non-Tobacco Male Tobacco
18 $24.30 $49.16
19 $24.85 $49.16
20 $25.39 $49.16
21 $25.94 $49.16
22 $26.48 $49.16
23 $27.03 $49.16
24 $27.57 $49.16
25 $28.12 $49.16
26 $28.16 $49.16
27 $28.20 $49.16
28 $28.25 $49.16
29 $28.29 $49.16
30 $28.33 $49.16
31 $28.38 $51.77
32 $28.42 $55.25
33 $28.46 $59.16
34 $28.50 $63.95
35 $28.55 $68.73
36 $29.72 $73.08
37 $30.15 $77.87
38 $31.57 $82.65
39 $33.98 $88.74
40 $36.89 $96.57
41 $42.75 $105.71
42 $47.28 $115.28
43 $53.97 $126.59
44 $61.69 $139.64
45 $65.25 $154.86
46 $72.71 $170.96
47 $79.17 $187.92
48 $86.13 $207.50
49 $93.09 $230.99
50 $100.05 $260.13

10-year term rates for females tobacco and non tobacco

Female Non-Tobacco Female Tobacco
18 $21.15 $29.15
19 $21.51 $29.15
20 $21.86 $29.15
21 $22.22 $29.15
22 $22.57 $29.15
23 $22.93 $29.15
24 $23.28 $29.15
25 $23.64 $29.15
26 $23.71 $30.02
27 $23.79 $30.89
28 $23.86 $32.63
29 $23.93 $34.30
30 $24.01 $36.54
31 $24.08 $39.59
32 $24.16 $42.63
33 $24.23 $46.55
34 $24.30 $50.46
35 $24.38 $54.81
36 $26.20 $59.16
37 $27.95 $63.51
38 $30.02 $68.73
39 $32.45 $73.95
40 $35.36 $80.48
41 $40.34 $87.44
42 $44.42 $95.27
43 $48.58 $103.97
44 $53.00 $113.54
45 $57.83 $124.41
46 $57.86 $136.16
47 $63.08 $148.77
48 $65.58 $162.69
49 $70.74 $178.79
50 $77.87 $197.93

The above are sample rates for no medical exam $500,000 life insurance policies at standard rates for males and females. (all prices subject to underwriting, use quoter above or call us for more accurate pricing based on your health)

500 000 life insurance no exam

Express Options: There are a few companies that do not order an APS (attending physician statement) which speeds up the approval time frame. If you are in a rush to get peace of mind and need life insurance ASAP then ask your agent for this route.

Reference:

https://www.thestreet.com/personal-finance/average-income-in-us-14852178
https://en.wikipedia.org/wiki/Insurable_interest
https://www.thebalance.com/average-monthly-mortgage-payment-4154282
https://www.usatoday.com/story/money/cars/2019/03/01/care-payments/3001818002/
https://nces.ed.gov/programs/coe/pdf/coe_tub.pdf
https://www.adea.org/GoDental/Money_Matters/Educational_Debt.aspx

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