What Is No-Exam Life Insurance?
Quick Answer
No-exam life insurance allows you to get a life insurance policy without undergoing a medical exam. You’ll pay more for no-exam life insurance, and you may get less coverage than traditional policies offer.
No-exam life insurance is a type of life insurance that doesn't require you to undergo a medical exam in order to get coverage. In most cases, you'll need to agree to a medical exam to apply for life insurance. That helps the company determine whether to accept your application, and how much to charge to counteract the risk it's taking on by insuring you.
When you choose a no-exam life insurance policy, you won't have to take a medical exam, but it generally means you'll pay more for your policy. Here's what to know.
What Is No-Exam Life Insurance?
A no-exam life insurance policy will typically require you to answer a few general health questions, but you won't need to take a comprehensive medical exam ordered by the insurance company. Some no-exam policies don't require you to provide any health information at all.
That differs from a traditional life insurance application. A typical life insurance medical exam is conducted in your home by a health care provider. It includes getting weighed, undergoing urine and blood tests, and providing answers to a series of health questions about your medical history and your family history. If you're applying for a lot of coverage, you may also have to get a stress test or an EKG to measure how your heart functions.
A medical exam helps determine your life expectancy, and your risk factors for various health issues—such as heart failure and cancer—that could impact how long you live. The longer a life insurance company expects you to live, the less it costs to insure you, and the more likely you are to pay premiums for a long period of time.
Types of No-Exam Life Insurance
Here's a summary of the types of no-exam life insurance, followed by more in-depth reviews:
| Simplified Issue | Guaranteed Issue | Accelerated Underwriting | |
|---|---|---|---|
| Health questions | Yes | No | Yes |
| Approval time | Fast | Fast | Fast |
| Coverage amounts | Moderate | Low | Low |
| Best for | Those without health issues | Those with serious health issues | Young, healthy individuals |
Simplified Issue
To get a simplified issue life insurance policy, you'll fill out a medical questionnaire, but you won't have to get an exam. You can start paying premiums and get coverage immediately after approval. It's generally best for those without existing medical issues, as your application could be denied if your job, hobbies or medical history puts you in the insurer's high-risk category.
While the application process is quick, you might pay more for this type of policy if you're healthy than if you agreed to get a medical exam and chose a traditional life insurance option. Also, maximum coverage amounts may be lower.
Guaranteed Issue
You can get a guaranteed issue life insurance policy without answering health questions or undergoing a medical exam. These are permanent life insurance policies that cover you until death and have cash value, but your beneficiaries won't be able to receive a full death benefit until after you've been covered for an initial waiting period of two to three years.
Guaranteed issue coverage amounts are low, typically up to $25,000, and premiums are higher than what you'd pay for other types of life insurance. Guaranteed issue is a good option for those with serious health concerns who couldn't otherwise qualify for life insurance.
Accelerated Underwriting
Life insurance companies use accelerated underwriting to reduce the time it takes for customers to submit their applications and get coverage. Instead of a time-intensive medical exam, insurers use information like driving records, credit reports, public records and prescription drug usage to help determine your risk. As a result, you'll likely pay higher premiums, and coverage amounts will be lower.
Accelerated underwriting is typically only available for applicants who are younger, healthier and don't have many lifestyle risk factors like smoking or dangerous hobbies.
Learn more: What Are the Different Types of Life Insurance?
How Much Does No-Exam Life Insurance Cost?
No-exam life insurance is more expensive than traditional life insurance and may also come with lower coverage amounts.
For example, the U.S. Department of Veterans Affairs offers a guaranteed issue whole life insurance policy to veterans under age 80, no matter their medical history. A 40-year-old woman would pay $88 a month for $40,000 in coverage. Through a private insurer, a 40-year-old woman would pay $61.80 for $40,000 in equivalent no-exam whole life insurance.
But choosing traditional life insurance instead of no-exam insurance would be significantly cheaper, and qualify her for more coverage. A 40-year-old woman in good health who doesn't use tobacco, for example, could get a 20-year term life insurance policy with $500,000 in coverage for just $28.90 per month. According to this insurer, she may not have to take a medical exam after applying; but if she is willing to do so, she'll pay less than half what she'd pay for no-exam life insurance.
Learn more: Reasons to Buy Life Insurance Now
Pros and Cons of No-Exam Life Insurance
When shopping for no-exam life insurance, here are the benefits and drawbacks to keep in mind.
Pros
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Quick process: Scheduling, undergoing and getting the results of a medical exam takes time. If you want life insurance quickly, choosing a no-exam option—with or without a health questionnaire component—will make the application process quicker and easier.
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Available to applicants with significant medical problems: If you are older or have a history of serious medical issues, you may not qualify for traditional life insurance. No-exam policies make life insurance more accessible to those who would have a hard time qualifying, though with some types of no-exam life insurance, it's possible your application could still get denied.
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No physical exam: If you find the idea of a medical exam inconvenient or invasive, no-exam life insurance gives you the option to get coverage without the need for a physical health assessment. You may, however, need to answer some questions about your medical history depending on the policy you apply for.
Cons
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More expensive than traditional life insurance: Opting for no-exam life insurance typically means paying more for premiums. The insurer may expect that your health and medical history make you unwilling to undergo a physical exam. Offering no physical data from an exam also gives the insurer less information to assess your risk.
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Potential waiting period: Guaranteed issue policies often include an initial waiting period, typically of two or three years, during which your beneficiaries will receive a reduced death benefit, or no benefit, if you die. They will receive your premiums back, with interest.
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Limited coverage: A traditional term life insurance policy can give you millions of dollars in coverage, if you need that amount of coverage. No-exam life insurance typically has lower maximum coverage amounts—as little as $25,000, in the case of guaranteed issue life insurance.
Who Should Consider No-Exam Life Insurance?
No-exam life insurance could be a good option if:
- Your health or age prevents you from getting traditional life insurance. Perhaps you've tried to get traditional term or whole life insurance and you were denied based on your age, medical history or other factors. No-exam life insurance could give you the chance to get at least a small policy to help your family cover expenses after your death.
- You qualify for a no-exam policy through other means. You may not have to take a medical exam as part of the traditional life insurance application process if, for example, you're under 40 or you're applying for coverage of less than $100,000. You can also get life insurance without a medical exam if you choose to participate in a group plan, such as one offered by your employer. In these cases, risk is spread throughout the group, and you can generally get up to a certain amount of coverage without providing health information.
- You're uncomfortable with the idea of a medical exam, or it would take too long. Life insurance applications that include a medical exam require a longer process and, potentially, a series of tests. If you want to get insured quickly or don't like the idea of a physical exam, no-exam life insurance is a solid option—as long as you're prepared for the higher cost.
Learn more: Factors to Consider Before Buying Life Insurance
How to Buy Life Insurance Without a Medical Exam
To buy life insurance without a medical exam, follow these steps:
- Determine your coverage amount. First, calculate how much life insurance you need. Experts recommend getting a policy that covers 20 to 30 times your salary; so, if you earn $60,000 a year, you'd buy $1.2 million to $1.8 million in life insurance. You may need more or less than that based on your circumstances, including any debts you have and particular expenses you'd want the payout to cover when you die.
- Choose the right type for you. Decide whether you want term or whole life insurance, and in the case of term life, how long you want the policy to stay active. Typical terms range from 10 to 30 years.
- Compare offers. Get quotes from a range of insurers, which you can often do online by entering data such as your age, gender, height, weight and smoking status. Compare not only the monthly premium but the coverage amount, the number of health questions you'll have to answer and the likelihood you'll need a medical exam based on your answers.
- Apply with an insurer. Complete a full application and submit it to the insurer to see the exact offer you qualify for. You'll answer a more detailed set of questions, and you may also need to agree to a phone interview so the company can gather more information about your medical history.
- Confirm your policy and pay premiums. The insurer will either approve or deny your application, or potentially approve it for a lower coverage amount than you asked for. You could also pay either less or more than you were quoted, based on your risk and any information collected about your health and lifestyle. If you're satisfied with the offer, sign the contract and begin to pay premiums as agreed.
Frequently Asked Questions
The Bottom Line
No-exam life insurance can be an important way to protect your family financially in the event of your death. If you can't qualify for traditional life insurance, or you want to avoid a medical exam for other reasons, no-exam life insurance gives you the option to get a policy, even if it's less coverage than would be ideal or at a higher cost. No matter the type of life insurance you choose, compare multiple options so that you can get the policy that best suits your needs.
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About the author
Brianna McGurran
Brianna McGurran is a freelance journalist and writing teacher based in Brooklyn, New York. Most recently, she was a staff writer and spokesperson at the personal finance website NerdWallet, where she wrote "Ask Brianna," a financial advice column syndicated by the Associated Press.
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