That is why no-medical-exam life insurance is so appealing. However, the costs of not taking the exam may not always outweigh the benefits.

What is no medical exam life insurance?

There will be no medical examination. Life insurance policies that do not require a physical exam to qualify for coverage are referred to as non-medical policies. There are four major types of life insurance that do not necessitate an exam:

1. Guaranteed issue life insurance.
2. Simplified issue life insurance.
3. Instant-approval life insurance.
4. Group life insurance.

A life insurance medical exam typically entails having your weight, height, and blood pressure checked, providing blood and urine samples, and possibly undergoing additional tests such as an electrocardiogram. The results are used by insurers to determine whether you qualify for coverage and to set your premium rate.

Without the exam, insurers must rely on other data, such as your answers to health questions and prescription history, to assess the risk of insuring you.

Prices for no-medical-exam life insurance policies can vary greatly. Some are designed for people in poor health who want to avoid medical questions, while others are designed for young, healthy people who want a quick application process.

Here's more information about each type of no medical exam life insurance.

Guaranteed issue life insurance

Summary: Guaranteed acceptance or guaranteed issue life insurance policies are typically small whole life policies marketed to seniors as burial insurance to cover final expenses such as funeral costs. There are no medical questions, and the application process is simple. If you are between the ages of 45 and 85, you are guaranteed approval.

These policies typically have graded death benefits, which means that if you die within the first few years of the policy, your life insurance beneficiaries will not receive the full death benefit unless you die of natural causes. They are instead paid a percentage of the premiums you paid into the policy, such as 110%.

For healthy people, guaranteed issue life insurance is generally more expensive than policies that require a medical exam.

Who it's for: Mostly middle-aged and older adults whose health would preclude them from getting full medical underwriting life insurance.

Simplified issue life insurance

Summary: Simplified issue life insurance policies do not require a medical exam, but you may be required to complete a brief health questionnaire as part of the application process. According to LIMRA, a life insurance research group, the most common questions are about your medical history, smoking habits, recent hospitalizations, height, and weight. Insurers may ask for additional information, such as your prescription drug history, driving record, and information from previous life insurance applications.

Policy approval is not guaranteed. Simplified issue policies are available for many types of coverage, including term and whole life insurance. Maximum coverage amounts are usually limited to $500,000 or less, depending on the company. A policy that requires a medical exam is typically more expensive.

Who it's for: People who don't mind answering health-related questions but want to avoid the exam and get a small amount of coverage quickly.

Instant-approval term life insurance

Summary: To make purchasing a term life insurance policy easier and faster, some life insurance companies use a streamlined approach known as accelerated underwriting.

Accelerated underwriting employs algorithms to determine eligibility for coverage and assists insurers in setting rates. A few health questions are frequently included in the application process for instant life insurance. The insurer then collects data, such as your driving record, prescription drug history, and information from previous life insurance applications, to use in calculating the risk of insuring you.

A medical exam may still be required depending on the results, and approval is not guaranteed. However, when compared to coverage that always requires a medical exam, these policies are reasonably priced. Because insurers collect a broader range of data on you, coverage amounts are frequently higher than in simplified issue policies.

Who it's for: Fit people looking for a quick application process.

Group life insurance

Summary: Group life insurance refers to life insurance provided by your employer. Rates are set for the entire group, and the employer typically pays the entire or a portion of the premium. Employers frequently pay for basic coverage amounts that are one to two times your annual salary. Enrolling in free workplace policies does not require you to take a medical exam.

Your employer may also provide the option to purchase additional coverage. To qualify for coverage, these policies, also known as supplemental life insurance, may require health information or the completion of a medical exam. People who are young and healthy may be able to get cheaper policies outside of the workplace because rates are based on the group as a whole.

Who it’s for: People who want free coverage or who are unable to purchase a policy on the open market.