Life Insurance

Life Insurance No Medical Exam

Usually life insurance requires a rigorous process of physical or medical exam of an applicant in order to see if there is a potential disease or other health condition so that the insurance companies can offer their policy coverage. But for the people who are having health issues or older age, they can acquire no medical life insurance that gets their cases approved without going through a lengthy process of medical exam.

Also, life insurance no medical exam is a great chance for the people who just don’t like the idea of hassle or are not comfortable with sharing their personal details. It is also for the individuals who want to take instant business loans or have some trips planned that require life insurance, this option is the best for them.

What is life insurance no medical exam?

Usually life insurance requires the applicant to conduct a medical or paramedical exam. Life insurance with no medical exam does not require the applicant to go through the exam that includes urine collection, blood draw, pulse reading, pressure check, height and weight measurement, a medical history interview and possibly an EKG. A person who wants life insurance with no medical exam forgoes these exams. They get the coverage without having to spend so much time on a physical exam.

In usual cases, the medical exam is taken in order to determine the current health of an applicant so that they can determine health class for the applicant and fix premiums and cost of a policy.

Going through lengthy tests and waiting for their results may require more hassle and if you are perfectly healthy, you don’t find a need to take these physical exams. No exam life insurance is for these people who are doing perfect in their health and don’t require any tests to get the coverage.

If you are buying no medical exam life insurance in case you are perfectly fine, you need to honestly answer all the questions that are being asked by your insurance company. Because based on the information you provide to your insurer, he will set the policy and premiums for your policy. If he finds out that you were dishonest in answering some questions in your application, he can reduce the payout or deny your claims altogether.

Advantages of no medical exam life insurance

If you are busy and have no pre-health conditions, there are many advantages of getting no medical exam life insurance such as:

  • Speedy approval

Traditional life insurance usually takes four to six weeks for approval. But if you need life insurance quickly for personal or business reasons, you can’t wait this long. In that case, no medical exam life insurance is the perfect option for you. It can be the case that there is a sudden trip coming that you can’t miss and don’t want to fly without having life insurance, no medical life insurance is the easy way to go.

You get approved for no medical life insurance within 48 hours. Some insurers even do it instantly after asking you about your medical history and some other related questions regarding your health. You just need to give all the information truthfully.

  • Get coverage even having health issues

If you have certain health issues and you are denied traditional life insurance, you can apply for simplified issue life insurance in which you will be required to answer some questions. But if you are too sick or too old, you should go for guaranteed issue life insurance.

  • Affordable life insurance without a medical exam

As a matter of fact, 20% of the adult population has needle phobia which prevents them from going for a lengthy medical exam to get life insurance. If you are among them or you just don’t like the idea of getting medical tests, you can go for accelerated issue life insurance that only requires you to answer some questions about your health, and they get you approved instantly.

In this case, the premium rates are similar to policies with full medical underwriting.

  • Have a dangerous job

Having a dangerous job such as commercial fishing or underground mining or a dangerous hobby such as skydiving and bungee jumping, your traditional insurer company can quote you hire rates.

In this case, if you are doing perfectly fine in your health, no medical life insurance quotes will compensate you in your current life situation.

  • Funeral insurance

Usually, life insurance costs go up with the age and when you cross 50, the increase becomes steep from 5%-8%. So if you are a healthy person over 50 years old and want to buy life insurance so that your funeral expenses get covered, no medical life insurance will help you in that case.

A policy of $25,000-$50,000 payout is likely to be enough to cover the funeral expenses for you. In this cost range, there are not many benefits with traditional life insurance, which also makes no medical life insurance more suitable for you.

Disadvantages of no medical life insurance

Although no medical life insurance offers its own benefits, it is still not as popular as traditional life insurances are. There are mainly following reasons for that:

  • No medical life insurance is more expensive

In a medical life insurance policy, the insurers determine the cost of the policy according to the results of the medical exam. The results dictate the exact risk rate which is not the case with the policy that does not provide the medical reports that can tell the risk conditions of the applicant.

So, the insurer usually cannot completely assess your risk level and take on more risk to cover you. They compensate for this by increasing the rate for your premiums of the policy.

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  • Low coverage amount

In comparison to medical life insurance, no medical exam life insurance doesn’t have the same amount of benefits. While each insurer can offer you different parameters, there are many no-medical policies out there with a benefit amount of over $5 million.

  • Little room for interpretation

Since no exam policy relies on algorithms, there is little room for interpretation. With a fully underwritten policy, underwriters usually offer coverage at higher rates rather than simply declining the application. So you end up paying a lot more in your premiums.

Who is no medical exam life insurance for?

  • Young applicants

If you are under 50 at a perfect age, many insurers will not insist you take medical exam life insurance, simply to save your money. A few companies in fact offer instant issue life insurance that you can apply online from the ease of your home.

Even if you are somehow unhealthy and under 50, you can still go for no medical life insurance. Just make sure to choose the right company that has access to underwriting guides for various insurance companies.

  • Older applicants

If you are older than 50, you are still eligible to apply for term life insurance policies without going through physical exams till the age of 65. Although the coverage amount decreases in this kind of policy. If you are not eligible for term life insurance then simplified issue whole life insurance is the good option for you that will forgo the medical exam.

  • Business owners

If you run a business and you want to get a small business loan, you will need life insurance to secure the SBA loan, medical life insurance will require more time to get you approved for the loan. No medical life insurance can be used in these situations because you can get it quickly.

  • Applicants with health issues

If you are not healthy or your situation is one that the insurers consider risky, then you can ask for a ‘quick quote’ from an independent insurance agency that has access to insurance companies’ underwriting guidance. A quick quote is referred to the case when it is sent to several underwriting departments at different insurance companies to examine your case and provide a preliminary decision before you can officially apply.

  • People with little time to spare

If the lack of time has been the factor that you are still not able to get the life insurance, know that no medical life insurance will take your 20 minutes to complete the process. You can talk to the agent on phone or apply online from the ease of your home, it will not take more than 30 minutes to be done with the process.

  • People who don’t like needles

As a matter of fact, 20% of the adult population has needle phobia that can be the reason for them not having medical insurance. If the blood draws part of the medical insurance has been holding you back to get the one, no medical exam insurance is for you to make progress.

Also, if you are not satisfied with the low coverage of the no medical insurance, you can buy multiple simplified issue life insurance policies that can provide you more coverage.

  • People who don’t want to hassle

If you are uncomfortable in providing bodily fluids, you are not a unique case. Life Insurance Marketing and Research Association’s study shows that 48% of Americans are less likely to buy life insurance that includes medical exams because they too don’t like a hassle. In this case scenario, no medical exam life insurance is the perfect option to go with.

How much does life insurance no medical exam cost?

The cost for no medical life insurance actually depends on what type of insurance you intend to buy. The price difference between no medical life insurance to the one that has a physical exam included varies from zero to double the price.

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There can be a scenario where you are paying more for medical life insurance in the cases where you don’t know about a health condition that resulted in the medical exam or you just become nervous during the exam that causes a rise in blood pressure. These kinds of situations can affect the premium you would pay on medical exam life insurance. You can skip these dues if you are going with no medical life insurance.

Below are the lists for different kinds of life insurances and their costs with different kinds:

Cheapest no medical exam term life insurance

  • 35 years old
  • 20-year term
  • $250,000 in coverage
  • Preferred health class
Company Cost Underwriting
Banner

Term

$188.24

Annually

Accelerated
Sagicor

Term

$192.26

Annually

Simplified
Pacific Life

Term

$193.22

Annually

Accelerated
Penn Mutual

Term

$193.30

Annually

Accelerated
Haven

Term

$193.85

Annually

Instant Decision
Lincoln National

Term

$194.88

Annually

Accelerated
SBLI

Term

$202.08

Annually

Simplified
American National

Term

$210.00

Annually

Simplified

Cheapest no medical exam universal/permanent life insurance

  • 55 year old
  • $100,000 coverage
Company Cost Underwriting
Penn Mutual

Universal Life

$1,411.83

Annually

Accelerated
Lincoln

Universal Life

$1,908.48

Annually

Accelerated
American National

Universal Life

$2,555.09

Annually

Simplified
Banner

Universal Life

$2,648.70

Annually

Accelerated

Cheapest no medical whole life insurance

  • 55 years old
  • $35,000 coverage
Company Cost Underwriting
Sagicor

Whole Life

$1,044.00

Annually

Simplified
American National

Whole Life

$1,170.00

Annually

Simplified
TruStage

Whole Life

$1,221.00

Annually

Instant Decision
Liberty Bankers

Whole Life

$1,266.95

Annually

Simplified
Mutual of Omaha

Whole Life

$1,323.65

Annually

Simplified
American Memorial

Whole Life

$1,378.20

Annually

Simplified

Types of life insurance no medical exam

If you are willing to buy no medical life insurance, make sure you know enough about the two types of no medical exam life insurance. Here you go to know about what they both offer and how they are both different.

Simplified issue life insurance

A simplified issue of life insurance requires the applicant to answer certain questions regarding his health and his family’s health. You will be given a detailed questionnaire that asks for the details of your health, your medical history, and your family’s medical history. Also, you would be asked to provide your previous medical records. This whole process will be dependent on the information you provide in written and oral form but you won’t be required to go for a medical exam.

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The premiums of this policy are higher than the traditional life insurance with a medical exam. Depending on the results of your evaluations, the coverage would be somewhere between $25,000-$300,000.

It’s up to you if you want the policy to be written for term life or whole life coverage.

If you are looking for simplified life insurance, it will be good in the following terms:

  • Convenience: A recent study suggests that 47% of Americans are likely to buy simplified life insurance which backs this idea that it is a usual option and people are really finding it convenient because it does not involve any medical exam.
  • Coverage with health issues: If you are facing health issues like controlled diabetes or IG conditions, buying life insurance with a traditional process may hinder your process to get any life insurance. Simplified life insurance is designed for cases like you where it is covered with these health conditions.
  • Quick approval: One of the most important benefits of getting simplified life insurance is that it saves so much of your time. With simplified life insurance, you can get approved right away. You don’t need to wait for weeks to get the results. If any trip is coming or you need an urgent business loan, this insurance is the go option for you.

One thing is to keep in mind that when you are applying for simplified life insurance, you better disclose any medical condition beforehand because if your insurance company discovers it after you die, your policy is void and your beneficiaries won’t be able to get the death benefits for you. So it is better to be very honest when you are answering the question asked from you during the process.

Guaranteed insurance

If you find out that you are not eligible to buy traditional life insurance or simplified insurance because of your health conditions or the premiums are unaffordable for you, you can still have hope in guaranteed insurance.

Guaranteed life insurance is a type of permanent life insurance especially for people who cannot acquire traditional life insurance due to their health conditions. The span of this insurance lasts for your lifetime as long as you are consistent with your premiums. If you are older and have some health issue, guaranteed life insurance would pay to your family with funeral expenses, medical bills, and other expenses after your death.

Like simplified life insurance, guaranteed life insurance is also provided without requiring you to give a medical exam. You just need to answer the questions related to your health and medical history.

In relation to death benefits, these policies usually have higher premiums which are usually around $25,000 or less. Many policies come with graded death benefits which means your beneficiaries will get an amount equal to only premiums plus interest if you die within two or three years after buying the policy.

Guaranteed life insurance will help you facilitate:

  • No questions asked coverage: Unlike other life insurances, guaranteed life insurance provides you lifetime coverage regardless of your health or age. You will be provided for till the last breath of your life as long as you pay your timely premiums. If you are facing serious health issues such as heart disease or even cancer, guaranteed life insurance pays your beneficiaries the graded death benefits after you are gone.
  • A way to cover final needs: As the coverage amounts are lower in the guaranteed life insurance, people are more likely to buy it as a form of final expense insurance. It pays your funeral expenses or your health-related medical bills and ends life debts. Through guaranteed life insurance, you can leave a small legacy behind for your children and grandchildren.

Commonly asked questions

Buying life insurance with no requirement of a medical exam is more likely in the American population, for that following queries are frequently asked by the customers to get more knowledge about the process.

  • What does the underwriting process include when there is no medical exam required?

Generally, the insurance company will require you to produce your application information, data sources used by the insurer such as prescription history, Medical Information Bureau (MIB), motor vehicle records (MVR), LexisNexis, Phone interviews, and doctors records.

  • Are no medical exam life insurance policies more expensive?

Usually, no medical life insurance policies are not more expensive compared to one that requires traditional underwriting. Recently the popularity of these policies has increased and has somehow increased the pricing of these policies.

As a matter of fact, a few decades ago, it was hard to even find life insurance that does not require a medical exam which means the popularity of these policies provides you more chances to get reasonable policies at your convenience.

  • Why are there maximum coverage amounts with no medical life insurance?

Offering life insurance with no medical exam is a risky job at the end of the insurer which most companies compensate by limiting the amount of coverage available with no exam policies. Most companies’ maximum coverage for a no medical exam spans from $500,000 to $2,000,000.

  • What is so bad about a medical/physical exam?

The whole process of the medical exam is lengthy and requires your blood pressure and urine sample. Your blood will be drawn, your height and weight will be recorded, and then can ask you for your Slavia. You will be needed to fill lengthy questionnaires about your health. Some may even require you to have an electrocardiogram or EKG.

After providing all these samples, you have to wait from 4 to 8 weeks. On top of that, you remain in an uncertain condition about the results of the exam that what if they turn up in anything that could cost your life insurance.

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Conclusion

No medical exam life insurance is a convenient life insurance policy for the people who want to acquire a life insurance policy, health issues, and old age. The policy is there for the people who are looking for getting permanent life insurance with reasonable prices and maximum coverage.

People have the choice to get simplified life insurance or guaranteed life insurance that only requires them to answer some queries about their health and medical history and they get approved for the policy right away.  The policyholders get the policy for their lifetime as long as they pay the premiums and get the graded death benefits. This policy is a good option for people who have a needle phobia or they want to get the policy in a very short period of time because of their personal or business-related requirements.

Charles Bains

Charles Bains started his insurance career as a marketing intern before pounding the pavement as a commercial lines agent in Orlando, FL. As an industry journalist, his articles have appeared in a variety of trade publications. His insurance television career, short-lived but glorious, once saw him serve as the expert adviser on an insurance-themed infomercial (yes, you read that correctly). Having recently worked for various organizations, coupled with his broader insurance knowledge, Charles is able to understand our client’s needs and guide them accordingly. He is a gem for Insurance Noon as his wide area of expertise and experience have been beneficial in conducting further researches to come up with solutions and writing them in a manner which is easy for everyone including beginners to comprehend.

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