Although a fully underwritten life insurance policy normally delivers the lowest rates, no exam life insurance is available for applicants who need a policy issued quickly and prefer not to deal with the inconvenience of a life insurance medical exam.
And, not surprisingly, there are many people out there who whence at the thought of giving a blood or urine sample to a stranger.
The good news is, in today’s life insurance marketplace, there are many insurance companies that offer no exam life insurance policies at very reasonable rates.
What Is No Exam Life Insurance?
If you need life insurance coverage quickly, No Exam life insurance is one of the quickest ways to get coverage without having to undergo a medical exam.
These policies are often easy to obtain, are approved much quicker than regular term policies, and may have higher premiums than term life insurance policies that require exams.
While in the past, no exam life insurance was usually more expensive and coverage typically capped at $250,000, in today’s insurance market, no exam life insurance policies are sometimes priced as good as fully underwritten policies and coverage is available up to $1,000,000.
Continue reading to learn more about this type of coverage; if you decide it’s for you, you can quickly compare quotes by using our quote engine above and select a policy that is right for your circumstances and budget.
How Does No Exam Life Insurance Work?
No exam life insurance is offered by many companies for individuals who need insurance quickly and are opposed to having a stranger come to their home or workplace to perform a life insurance exam.
Because this step in the underwriting process is eliminated, the insurer will use other methods to gather your medical information so that they can determine your medical risk to the company.
These underwriting methods generally include some or all of the following:
- MIB Report – Your MIB (Medical Information Report) will be ordered electronically and will include any medical information that other insurance companies may have collected about your health history.
- RX Report – An RX (prescription drug) report will also be ordered from a national database that contains your prescription drug use history from health insurers, pharmacies, and other medical service providers.
- Life Insurance Application – The life insurance application contains specific questions regarding your current health, your historical health, and most will ask questions about your immediate family’s health.
- MVR Report – Many companies order an MVR (motor vehicle report) to discover if you have a history of major traffic violations like DUI or DWI. This report can assist the insurer with getting a picture of any lifestyle issues that might affect your rating.
Since all of these reports can contain sensitive information, applicants give permission for ordering them when they sign the application.
By forgoing the life insurance exam, the underwriting process is much faster and the insurance company can issue a policy in a matter of days instead of weeks or months.
Types of No Exam Life Insurance Policies
As no exam life insurance has gained in popularity over the years, many life insurers have responded to consumer demand by offering no exam Term Life Insurance and no exam Whole Life Insurance, with Term Life Insurance being the most popular.
Life insurance consumers also benefit from the various rating methodologies that many insurance companies are using in the 21st century. These methodologies or underwriting processes allow the insurer to gather data in various ways.
Simplified issue life insurance policies are available from many insurers and generally have higher rates than fully underwritten policies. With the simplified issue process an applicant can expect:
- No medical exam
- Medical questions on the application
- Possible MIB and RX reports
- 3 or 4 different rate classes
- Death benefit typically capped at $500,000
- Higher rates than fully underwritten policies
Although accelerated underwriting is not offered by as many insurers, each year more and more companies are utilizing this process as they are able to onboard the needed technologies. Accelerated underwriting generally involves:
- No life insurance medical exam
- A more comprehensive application
- Underwriter telephone interview (if needed)
- MIB and RX reports
- Standard and Preferred rate classes
- Death benefit up to $1 million
- Pricing close or equal to fully underwritten policies
Guaranteed Issue Underwriting
Guaranteed issue life insurance, which is offered by a handful of companies, is generally used as a last resort when an applicant cannot medically qualify for traditional life insurance.
In most cases, guaranteed issue life insurance is whole life insurance rather than term life insurance and requires a 2-year waiting period before the insurer will pay the full death benefit for death due to natural causes.
Applicant’s who purchase guaranteed issue life insurance can expect the following:
- No medical exam
- No medical questions on the application
- A 2-year waiting period provides for the company to pay only the return of premium plus an additional percentage if death results from natural causes.
- Coverage is typically capped at $25,000
- Eligible applicant age is typically 50 – 85
- Much higher rates than fully underwritten, accelerated underwriting, or simplified issue life insurance.
Pros and Cons of No Exam Life Insurance
As with any life insurance product, the advantages and disadvantages are generally a result of the applicant’s need for life insurance.
While no exam life insurance may be a perfect fit for an applicant that needs life insurance fast and easy, it may not be a good fit for the applicant who wants a substantial death benefit at super-affordable rates.
Pros of No Exam Life Insurance
- No medical exam to deal
- Faster issue of insurance coverage
- Competitive rates for healthy applicants
- Many insurers competing for your business
Cons of No Exam Life Insurance
- Age restrictions that could affect seniors
- Limited coverage amounts – typically $1 million
- Higher rates for applicants who are 50 or older
- A smaller group of rate classes to qualify for
Who is a Good Candidate for No Exam Life Insurance?
A no exam life insurance policy is suitable for a variety of people in many different circumstances, including:
- Those who may not have time for a medical exam
- Those who are averse to the idea of a medical exam for personal reasons
- Those who may be traveling and unavailable to undergo an exam
- Those who are physically unable to have a medical examination
- Those who need coverage quickly
It’s important to note that just because there is no medical exam requirement, no exam life insurance is not always a good fit for applicants with severe or multiple health issues.
Even if an applicant omits a medical condition on the application, the insurance company can deny paying a death benefit if death occurs in the first two years of the policy and an investigation reveals an intentional omission.
How Much Life Insurance Can You Get Without a Medical Exam?
The amount of life insurance you can purchase without a medical exam depends on the company you choose to do business with.
If you’re looking for a guaranteed issue life insurance policy, the limits are typically $25,000, but if you prefer term life insurance, your limits are typically much higher.
Here are our top five go-to companies for no exam life insurance:
|Company||Program Name||Coverage Amounts|
|Protective||Accelerated Underwriting||(18 – 45) $100k to $1mil|
|Banner Life||Appcelerate||(20 – 40) $100k to $1mil
(41 – 45) $100k to $750k
(46 – 50) $100k to $500k
|Principal||Accelerated Underwriting||(18 – 60) $50k to $1mil|
|SBLI||Non-Med||(18 – 60) $110k to $750k|
|Lincoln Financial||TermAccel||(18 – 60) $100k to $1mil|
How Much Does No Exam Life Insurance Cost?
All life insurance policy rates, whether medically underwritten or not, will depend on the applicant’s age, health, coverage amount, type of insurance, and the insurance company selected.
Because so many insurance companies with superior technology are competing for your business, no exam life insurance is much more competitive with fully underwritten life insurance than ever before.
Here are actual rates for a $500,000 20-year term life insurance policy for a healthy make non-smoker. Fully underwritten versus no exam life insurance.
Age of Applicant Rates with Exam No Exam Rates
25 $18.98 $19.53
30 $19.30 $19.87
35 $21.25 $22.68
40 $29.34 $31.30
45 $47.69 $48.58
50 $72.30 $80.91
55 $114.83 $151.09
60 $199.06 $274.74
Notice at age 50 the rates for no exam life insurance versus fully underwritten life insurance get substantially higher.
Applying for No Medical Exam Term Life Insurance
There are some things you need to know about applying for this type of coverage:
- You will have to fill out a questionnaire about your current state of health as a well as provide a complete rundown of your medical history.
- In most cases, you will need to be interviewed by insurance company personnel.
- Before approving an application, the insurance company may request information from your physicians and the Medical Information Bureau.
- In most cases, the insurance company will also check your driving record with the DMV, as well as a list of your current and previous prescription medications.
- It is imperative that all applicants are completely honest about their health history to avoid policy complications down the line. No Exam life insurance should not be seen as a way to avoid disclosing certain medical conditions.
No Exam Life Insurance Restrictions
Coverage is Limited: The average policy is limited to $500,000 in benefits (less with several companies). If you are looking for more coverage, you’ll need to go with a policy that requires a medical exam.
Age Restrictions: In most cases, you must be under 60 years old to qualify for a No-Exam policy.
Premiums are Sometimes Higher: Since you’ll be attaining a policy right away, with little or no underwriting required, the insurance company will be taking a higher risk in covering you. To compensate for this added risk, your premiums might be slightly higher than what you would pay for a policy that requires an exam. Update: There are a few companies whose rates compare favorably to fully underwritten policies.
LifeInsure.com can Help
No Exam life insurance is the ideal solution for many people who are looking for life insurance coverage quickly and without a medical exam! Compare several life insurance quotes from top companies with LifeInsure.com – without sales pressure or submitting sensitive personal information. We’re here to help you get the coverage you need!
In my 20+ years as an independent life and disability insurance broker, I have personally assisted thousands of clients with their life and disability insurance needs. Being independent, I represent many highly-rated insurance companies and, because I am not beholden to any one insurance company, my focus is to find the right company and policy for each individual client. I believe that when people shop for insurance (or anything else, for that matter) on the Internet, they are looking for a simple, non-intrusive, non-pressure method of doing so. I strive to treat my prospective clients with the utmost respect and I believe an educated prospect can make the right decision without sales pressure. Please feel free to contact me at your convenience.