If you want to buy life insurance but are put off by the requirement of having a medical exam, you still have an option. No exam life insurance is a type of life insurance that can offer up to $1 million in coverage and doesn’t require a medical exam. While the convenience is high, the flip side is that costs are typically higher and policies have lower face value than those that do require exams.
Here is a guide to give you all the information you need about no exam life insurance, including where you can get free quotes.
Types of No Exam Life Insurance
There are three main types of no exam life insurance: simplified issue, guaranteed issue, and accelerated underwriting.
Simplified issue is a type of term life insurance, and for this type of policy you need to provide some medical information. Underwriters review your health information and determine how much your premiums should be. In some cases, underwriters determine that your health complications pose too much of a risk to the insurer, and they deny the application.
Guaranteed issue is a type of whole life insurance that doesn’t require any underwriting. This is because applicants do not need to provide any health information — approval is guaranteed as long as they are under the age of 85.
In addition to the above two types of no exam life insurance, some people have the option to get an accelerated underwriting policy, which is a traditional life insurance policy that allows certain people to skip the medical exam. These policies are fully-underwritten, but the process is accelerated so you can get approved faster. If you qualify to skip the medical exam, the insurer will get information from other sources (with your approval). These sources include the Medical Information Bureau (MIB), your pharmacy, the Department of Motor Vehicles, and more.
With simplified issue life insurance, the waiting period for approval can range from a few days to a few weeks. This is because underwriters need time to assess the health information provided. They then review all your information to determine whether you qualify and how much your premiums should be.
For guaranteed issue life insurance, there is no underwriting and approval is instant — if you are under the age limit, you qualify. You can literally become the owner of a guaranteed issue policy in a matter of minutes.
Accelerated underwriting policies also offer fast approval, some in less than 24 hours and many within 48 hours.
Policies with no medical exam usually pose a higher risk to the insurer, since they don’t have an up-to-date snapshot of your health. One way insurers minimize their risk is by limiting the amount of coverage.
Because simplified issue insurance does provide the insurer with some health information, coverage can go up to $500,000 or even $1 million in some cases. Guaranteed issue, on the other hand, does not provide any health information to the insurer, so coverage is limited to $25,000 or $50,000 at the most.
Similar to simplified issue, accelerated underwriting policies offer coverage up to $500,000 or $1 million.
No exam policies have a reputation for being more expensive than policies that do require a medical exam. In the case of guaranteed issue policies, this is certainly true. Since guaranteed issue policies offer coverage to everyone regardless of health conditions, insurers cover their risk by raising premiums.
However, when it comes to simplified issue and accelerated underwriting life insurance policies, the cost is not necessarily more expensive. People who are in good health and just don’t have time to undergo a medical exam might find that their rates are fairly on par with those of traditional life insurance policies. The only way to know for sure is to get a quote, which you can do for free.
Benefits of No Exam Life Insurance
There are many reasons why people choose life insurance, but across the board, these are the most common:
- Approval is instant or at least, much quicker than a traditional policy – People who need life insurance quickly, for a divorce or business loan, for example, can get life insurance in a jiffy with a no exam policy
- Approval is also easier – If you have a serious medical condition that would prevent you from being approved for a traditional policy, you can still get coverage with a no exam policy
- You get to skip the exam – For some, this is a perk. For others, it’s crucial if they are scared of doctors and/or needles.
If no exam life insurance sounds like it can be right for you, there’s no point in delaying. Every minute you delay is another minute you leave your loved ones at risk. Whether you choose a policy that does require an exam or one that doesn’t, your goal of providing financial coverage to your loved ones will be accomplished.