December 15th, 2020 | Updated on May 24th, 2023
Life insurance applications usually require a medical exam so that the insurance company can assess the health of the person who’s applying. While the exam isn’t painful, it can be unpleasant and inconvenient.
It includes giving blood and urine samples and having your blood pressure taken, among other things. If you are someone who doesn’t like being poked and prodded, applying for no exam life insurance can help you skip the discomfort of a medical exam.
What Is No Exam Life Insurance?
No exam life insurance is just what it sounds like: life insurance that you can get without having to undergo a medical exam. Just like there are different types of traditional life insurance (term, whole, etc.) there are different types of no exam life insurance.
The main types are simplified issue, guaranteed issue, and group insurance. The latter is usually offered through employers, which means that individuals usually need to decide between simplified and guaranteed issue.
Simplified issue and guaranteed issue are priced differently, as we’ll discuss below. In general, no exam life insurance tends to be more expensive than traditional life insurance because of the increased risk to insurance companies.
When someone applies for traditional no exam life insurance, the information from the medical exam is sent to underwriters, who compare every detail against millions of statistics to determine what is the statistical likelihood that the person will die early.
Many factors are considered, including your gender, age, weight, blood pressure, chronic and various diseases, smoking status, lifestyle, and more. Once underwriters deal with the statistics, they are able to calculate the monthly premium that you will pay. The healthier you are, the lower your monthly premium will be.
With no exam life insurance, insurers know much less about your health. Therefore, underwriters can’t conduct a completely accurate risk assessment. Due to this fact, monthly premiums are usually higher. It’s how insurers cover their risk. You can get a free quote here to see what we’re talking about.
Benefits Of No Exam Life Insurance
While the cost can be high, there are many benefits of no exam life insurance that can make it worthwhile. Three main benefits are fast approval, being able to avoid the needle, and easier approval.
Fast Approval
When you apply for traditional life insurance it can take between 4 to 8 weeks to hear back from the insurance company. With no exam life insurance, approval is immediate or can take a few days. (It depends on the kind you get.)
This makes it ideal for people who don’t have the patience for the 2-month process of life insurance approval. It’s also great for anyone who needs life insurance urgently, whether it’s for a divorce, SBA loan, or sudden travel plans.
Avoid The Needle
People who suffer from trypanophobia, extreme fear of needles, often put off getting life insurance because the exam requires a blood test. No exam life insurance is the ideal solution, since it allows you to skip the exam and the stress that comes along with it. Even if you don’t suffer from needle phobia but get nervous around doctors, no exam life insurance can be a big relief.
Easier Approval
Guaranteed issue no exam life insurance offers approval to anyone who applies, no health questions asked (see more below). This means that if you’ve been turned down for other life insurance policies due to health issues, you can still get the coverage you need with no exam life insurance.
Simplified Issue
Simplified issue no exam life insurance is a type of term insurance that’s similar to traditional term. Term means that you purchase it for a certain amount of years, and when the term is over, coverage ends. It’s available to adults between the ages of 18 and 75.
This type of no exam policy requires you to provide some health information, but not as much as you would need to provide for a traditional policy. As such, people with serious health conditions may not get approved for simplified issue. However, people in good health can get approved and even get coverage up to $1 million.
Guaranteed Issue
Guaranteed issue life insurance, as mentioned above, grants approval to anyone who applies, as long as they are under the age limit specified by the insurance company. This is a kind of whole life insurance, which means that as long as you pay the monthly premiums, the policy is valid for your entire life. Unlike traditional whole life insurance, there is no cash value component of guaranteed issue.
When you apply, no health questions are asked. You can be approved on the spot. As such, monthly premiums are very high and coverage only goes up to $50,000. This kind of insurance is ideal for anyone with a serious medical issue or someone who has been turned down for other types of life insurance coverage.
Is No Exam Life Insurance A Wise Choice?
The question of whether no exam life insurance is a wise choice is one that only you can answer. If you fit any of the descriptions above, such as someone who needs life insurance quickly, has a fear of needles, or has serious medical issues, no exam life insurance can be a wise choice indeed.
If you’re young and in great health, you may still want to apply for a no exam policy because simplified issue can sometimes offer very competitive rates.
Before committing to anything, try getting free quotes for various types of policies. That can give you an idea of how much you can expect to pay and whether the convenience is worth it.
