Income Protection – No Medical Exam
People sometimes want paycheck protection but don’t want a medical exam. If you’ve encountered this before, you’ll be happy to learn that it is possible to buy income protection, no medical exam required. Although many disability insurance policies require medical underwriting that includes an exam, some options let applicants bypass this process. These paycheck protection options can be ideal for individuals with pre-existing conditions.
Income Protection – No Medical Exam
People sometimes want paycheck protection but don’t want a medical exam. If you’ve encountered this before, you’ll be happy to learn that it is possible to buy income protection, no medical exam required. Although many disability insurance policies require medical underwriting that includes an exam, some options let applicants bypass this process. These paycheck protection options can be ideal for individuals with pre-existing conditions.
The Medically-Impaired Market Is Massive
Workers are often encouraged to buy disability insurance as early as possible – BEFORE they develop any medical conditions that could lead to higher costs and rejected applications. This is good advice. If you can lock in great coverage terms and affordable rates while you’re young and healthy, you can keep that coverage throughout your career, even if you suffer health problems in the future.
Unfortunately, some people develop health conditions while they are young. Others don’t realize the importance of disability insurance until after they have a health scare. These people still need paycheck protection.
CMS says between 50 million and 129 million non-elderly Americans have a pre-existing health condition that could impact medical underwriting. That’s 19% to 50% of all Americans under the age of 65!
Many of these people may want disability insurance but assume it is out of reach. Perhaps they even looked into buying disability income insurance in the past but were told they didn’t qualify. However, there ARE disability insurance options for people with pre-existing health conditions.
Option One: Simplified Issue Disability Insurance
Simplified issue disability insurance lets applicants skip the time-consuming medical underwriting process. Since the streamlined underwriting process does not include a medical exam, bloodwork, or an inspection report, it can be a fantastic option for individuals with pre-existing medical conditions. Simplified issue disability insurance is also a good way to avoid having to provide financial documentation, which can be complicated for people who don’t have regular salaried jobs, such as freelancers and small business owners.
Although coverage terms may be more limited than with regular individual disability insurance that uses medical underwriting, coverage can still be comprehensive. Own-occupation definitions are available and policyholders can secure two-, five-, or 10-year benefit periods. The waiting period can be as short as 30 days or as long as 180 days.
Option Two: Guaranteed Standard Issue Disability Insurance
Guaranteed standard issue disability insurance is another option anyone with a pre-existing medical condition should consider. This coverage is available to groups of five or more employees at the same company. The employees don’t need to have the same job title.
This option again lets people bypass the time-consuming underwriting process that many disability insurance applications involve. In addition, the group can qualify for a multi-life discount. These qualities make guaranteed standard issue disability insurance attractive to people with pre-existing conditions as well as people in good health who just want hassle-free, affordable paycheck protection.
Insurance Agents Are Obligated to Help Clients with Pre-Existing Conditions
Let’s say an insurance agent named George has a client named Lily who wants to buy disability insurance because she’s had cancer in the past. Although she’s recovered, Lily knows how financially disruptive a disability can be. As George tells her she’d have to go through medical underwriting to buy coverage, she decides not to move forward.
Two years later, Lily has a heart attack and can’t work. She doesn’t have any disability coverage. She learns she could have secured simplified issue disability insurance, but now it’s too late. She blames George for failing to tell her about all her options. Faced with mounting debt and no way to pay her mortgage, she’s thinking about suing George for professional negligence.
Insurance agents have a professional responsibility to inform their clients of their insurance options. Since pre-existing conditions are incredibly common, agents need to know about simplified issue and guaranteed standard issue insurance options.
Is Simplified Issue Insurance the Right Option?
To determine whether simplified issue disability insurance is the best fit, ask the following questions. Does the applicant:
- Have a pre-existing medical condition that could impact underwriting? It’s important to know this information to be able to approach the best disability insurance companies for people with pre-existing conditions.
- Engage in high-risk activities?
- Need to supplement group disability insurance? Group disability insurance coverage can be limited. Plus, since it’s tied to a job, many people want supplemental coverage – which simplified issue disability insurance can provide.
- Have coworkers who also need coverage? If there’s a group of five or more employees who need coverage, guaranteed standard issue disability insurance might be a good option.
The most important takeaway is you have options – even if you’ve had serious health conditions in the past. In fact, DIS succeeds in placing the vast majority of medically-impaired cases.
Do You Need Income Protection with No Medical Exam?
An insurance agent can help you compare your policy options and buy disability insurance coverage that meets your needs. Find an agent.
Are You an Insurance Agent?
Help people with pre-existing conditions secure the disability insurance coverage they need. Request a quote.
The following resources can help you sell disability insurance to people with medical conditions.
