No-exam and guaranteed-issue: what you're trading away
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"No-exam" policies skip the medical exam and often use just a health questionnaire, or in some cases no health questions at all (guaranteed issue). That's appealing if you have health conditions that make traditional underwriting difficult, but insurers make up for the added risk somewhere else.
Typically that means a higher premium relative to the payout, a lower maximum face amount, or a graded death benefit — often a waiting period, commonly around two years, during which a death from natural causes pays out less than the full benefit (often a refund of premiums plus some interest). Death from an accident is usually covered at the full amount even during that waiting period, but this varies by policy — verify it before buying.
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