No-Exam Life Insurance vs. Standard Life Insurance

Do you know that not all life insurance companies need medical exams to provide you with coverage? Traditional life insurance policies require an applicant to undergo a medical exam, which leads to the time-consuming process of underwriting an application. Medical exams are focused on applicants’ assessment and getting more insights into their health state through a set of questions about their medical history, lifestyle, past life insurances, driving record, etc. 

As opposed to standard life insurance, no medical exam life insurance needs less time and effort to provide coverage. It is an affordable alternative when you’re looking for fast coverage or have any pre-existing conditions leading to fewer chances of passing a medical exam. There are different reasons why people seek out the option to get life insurance without undergoing a physical and medical exam:

• Applicants’ health state is not in the best condition, which can result in paying a higher rate for getting coverage.

• Applicants need a fast way of obtaining life insurance, let’s say while being in the process of divorcing or, for example, for their business venture. 

• Some individuals opt to avoid stressful questions, or needle pokes.

Yeah, such above mentioned pluses can seem very attractive from the first glance; before skipping a medical exam when applying for coverage, you need to understand how this policy works and if it is really tailored to your needs. And even if you skip medical exams, there are a lot of ways for insurers to check your health history through third-party sources. That's why do not relax and dive deeper into the topic.  

Who and in What Cases Can Benefit from No-Exam Life Insurance?

The core factor for term life insurance without health check is a convenience for individuals, but this, in turn, will have an impact on your budget. The best candidates for no medical exam life insurance are those who are in good health condition, have regular visits to doctors, are under the age of 50, and also, have not filed for bankruptcy. However, it is not an appropriate solution for everyone. Let’s look if the following scenarios of life insurance with no exam apply to you.

1. If your job or hobby is of high risk, and even if you are healthy, it might be hard to obtain standard life insurance.

2. If you need immediate life insurance, a no-exam policy can be a great option for you, taking on average a few days. 

3. If you have pre-existing medical conditions, such as diabetes, you are allowed to obtain guaranteed issue life insurance.

4. No medical exam life insurance policy is a good option for older people who have problems with their health looking for ways to care about their loved people. 

5. If your parents died before the age of 60. 

Types of Life Insurance Policies Without Medical Exams

Simplified Issue Life Insurance 

Typically, simplified issue life insurance doesn’t need undergoing a medical exam; however, there are a few health-related questions for you to answer, or you may be asked for your medical records. Even if the underwriting process is fast and decisions are instant, rates are higher due to the health information about you that is limited, thereby making it harder for insurers to make accurate judgements. Therefore, compared with a fully underwritten policy, the coverage amounts of simplified issue life insurance are limited to $500,000. 

Guaranteed Issue Life Insurance 

This type of life insurance speaks for itself. Regardless of health issues or age, you are guaranteed to get the policy coverage, and you can’t be refused. Because of this fact, the coverage amounts are limited to $50,000. If you can’t qualify for no medical exam life insurance, it is a good alternative, but might be costly. 

Moreover, these policies are focused on adults and also are called graded death benefits, which means that your loved ones have restrictions on taking out a payout. Your beneficiaries can receive a death benefit only if three years pass after you purchased a policy. Guaranteed issue life insurance is a good option for those who want to have final expenses or funeral costs to be covered. Note it costs much more than medically underwritten policy. 

Final Thoughts

As opposed to standard life insurance policies, no-exam life insurance has lower face values, and the price for purchase may be higher, ranging from $250,000 to $500,000. While traditional policies can take up to several weeks for approval, life insurance without a medical exam on average takes up to several days. There are a lot of benefits while applying to life insurance without an exam; however, it also comes with trade-offs. If you’re looking for a fast and easy solution, you need to weigh all pros and cons, including higher rates, lower coverage sums, and restrictions as well.