Guaranteed Medical Insurance Policies: Here to Stay

You've seen the ads everywhere. They tell you about a medical insurance policy with no medical exam. For some people, these "guaranteed medical" insurance policies can be the only way to buy medical insurance protection. Often marketed to the unhealthy, guaranteed medical insurance will insure everyone who comes along, with no medical examination and without asking any medical questions.

Guaranteed medical policies should not be confused with simplified or quick issue individual medical insurance — for which insurers will ask medical history questions but will not require an examination.

"There are some 'short form' medical insurance policies that you shouldn't confuse with guaranteed medical policies," says Bill Mobley, an actuary with the American Council of Medical Insurers.

"For a true guaranteed medical policy, there are no medical questions — you just send your money and get insurance." What's the catch? There are a few, says Schreiner.

Most guaranteed medical insurance policies are designed to provide for basic medical expenses, so it can be tough to find a company willing to sell a policy with benefits of more than $15,000 to $20,000.

Medical insurance companies use medical information to offer lower rates to healthier people. Also, because guaranteed medical insurance policies do not rely on medical information to set premiums, the cost tends to be relatively moderate to high.