What Is No Medical Exam Life Insurance?

No exam life insurance is a policy that does not require you to take a medical exam in order to obtain coverage. Instead, as part of the underwriting process, buyers are asked to answer medical questions or allow the insurer access to their health records.

Types of life insurance policies with no medical exam

Simplified issue life insurance

To determine your insurability under simplified issue policies, you must complete a health questionnaire. You should be prepared to answer questions about your:

• previous and current medical conditions
• biological family’s health conditions
• job and hobbies
• habits

The maximum coverage amount on most simplified issue policies is $500,000. The cost of your policy will vary depending on the size and term length of the policy, as well as your age and gender. Before receiving approval, a phone interview may be required.

Guaranteed issue life insurance

Guaranteed issue life insurance is a type of whole life insurance policy that does not necessitate any medical exams or health questionnaires. Approval is guaranteed if you are between the ages of 50 and 85 and do not have a current severe medical condition such as cancer. For example, AIG's guaranteed issue whole life insurance policy requires applicants to be between the ages of 50 and 85.

A graded death benefit is included in this type of non-medical exam life insurance plan. If the policyholder dies within the first few years of purchasing the policy, the total death benefit amount will not be paid out.

Guaranteed issue policies are typically available in much smaller amounts than other non-exam life insurance coverage options, with most policies not exceeding $25,000.

Accelerated underwriting policies

People in good health can get life insurance through accelerated underwriting, which eliminates the need for a medical exam. Following the completion of a health questionnaire, the insurer will use information from medical, credit, driving, and other third-party records to underwrite your policy and determine your premium. You can get a fully underwritten policy with a limit of up to one million dollars.

Perfect-health applicants can find these no-exam policies through companies that specialize in online policies for young adults, such as Haven Life and Bestow Life. To be eligible, candidates must have no severe medical conditions (such as cancer or diabetes), no family history of heart disease before the age of 60, a history of safe driving, no felonies or convictions, and no recent bankruptcy filings.

How Does No Exam Life Insurance Work?

A traditional life insurance policy necessitates medical underwriting, which is the examination of your medical history. During this process, insurance companies will request personal information such as your weight and height, blood pressure, and other lifestyle and medical history information. You may be required to provide a urine sample.

Life insurance companies take a risk in insuring you without a medical exam when you purchase a no exam life insurance policy. That is also why no exam life insurance rates tend to be higher.

Who is eligible for no exam life insurance?

No-exam eligibility The final decision on life insurance policies will be made by the life insurance company. Companies may refuse coverage if you are over the age limit or have a serious health problem, such as cancer.

Underwriters rely on your medical records to determine your eligibility if you skip the medical exam. With your permission, they will also collect information from:

• A Questionnaire: To answer questions about your current health, smoker status, as well as family medical history
• Databases: Underwriters can use databases to find information about your prescriptions as well as results from previous life insurance health exams.
• Driving Records: Insurance companies look into your speeding tickets and at-fault accidents. Your premiums may rise if you have a history of reckless driving.
• Your Doctor: Underwriters may request an attending physician's statement from your primary care physician.

What are the benefits of no exam life insurance?

There will be no exam. Life insurance not only provides immediate access to coverage, but it may also cover you if you do not qualify for a traditional life insurance policy with a medical exam, have poor health, or simply prefer not to take an exam.

What are the downsides of no exam life insurance?

Unless you are in near-perfect health and choose an InsureTech company that uses technology to assess your health history based on your and your family's medical history, no exam life insurance costs more than standard term life insurance.

If you are young and healthy and need to increase your term life insurance policy to protect your growing family, a fully underwritten policy that requires a health exam will provide you with a better rate.

What are the costs?

Because each life insurance applicant is different, the cost of a no-exam life insurance policy varies greatly between different life insurance providers. When you choose no exam coverage, there is no simple percentage increase. The costs will ultimately be determined by the amount of life insurance required. However, when companies issue policies, the following guidelines tend to hold true.

No exam life costs more when:

• You're Young and Healthy: Unless you shop with an InsureTech company like Haven Life or Bestow Life, no exam will be more expensive. This is why it is not recommended for young and healthy applicants under the age of 45, who can get much better rates with a medical exam life insurance policy.
• You Need a Larger Policy: The more coverage you require, the more expensive the policy. Because you won't be able to find more than $500,000 in coverage without taking the exam, you should get fully underwritten coverage for large policies.

No exam is a better value when:

• You Smoke: Smokers already pay higher premiums even with an exam, so skipping the exam won't significantly increase them. Younger smokers who are getting a small policy may be able to save money by skipping the exam.
• You're Getting Older: The price increase for non-traditional coverage becomes smaller for older applicants, particularly when purchasing final expense coverage.

How to Avoid Getting Turned Down for a No Exam Life Insurance Policy?

Based on your age and pre-existing medical conditions, an insurance company may deny your no exam life insurance application. Applicants with COPD, diabetes, or other medical conditions often have difficulty finding policies because insurance companies are concerned about their life expectancy.

You can avoid being denied for no exam life insurance by doing the following:

Speak with an insurance agent.

Every insurance company approaches the underwriting of no exam policies differently. Inquire with an independent life insurance agent for assistance in locating the best life insurance quotes for your situation, as they may have access to as many as 10 or 12 companies at once.

Look into guaranteed issue coverage

The term "guaranteed issue life insurance" is apt. Because the insurer does not ask many – if any – health questions, almost everyone who applies is guaranteed approval. However, insurance agents refer to this type of life insurance as "last resort" for a reason:

• Low Coverage Amounts: coverage of up to $25,000, but no more.
• Premiums Are Expensive: higher premiums for less coverage
• Coverage Is Delayed: There is a two to three-year waiting period before the policy pays out.

Consider group life insurance

As an employee benefit, many companies provide life insurance. You may not even have to pay the premiums in some cases. You can opt in without the insurer running a medical history check. Although it is a nice perk, this group life insurance coverage has limitations:

• Low Coverage: When compared to simplified issues or a fully underwritten personal life insurance product, group policies cannot provide the same level of coverage.
• Temporary Coverage: If you change jobs, you will lose coverage.

The Bottom Line

No exam life insurance can provide coverage of up to $1 million. The question you must ask yourself is whether that sum is sufficient to meet your life insurance needs and protect your loved ones. Experts recommend purchasing enough life insurance to replace your annual income for the next 10 to 12 years.

However, not all policyholders require income replacement coverage. No-exam life insurance can provide adequate coverage if and only if the following conditions are met:

• You're applying for a loan, and the lender requires life insurance as collateral.
• You are planning your estate and want to provide liquidity for your heirs.
• You're an empty nester, your mortgage is paid off, and you don't have any children.

If you are in good health and time is not an issue, you can apply for a fully underwritten policy, which usually results in a lower rate. If not, no exam life insurance policies will provide quick and easy coverage for those who cannot or do not wish to undergo the medical examinations required by most types of life insurance.