Money Research Collective’s editorial team solely created this content. Opinions are their own, but compensation and in-depth research determine where and how companies may appear. Many featured companies advertise with us. How we make money.
What Is No-Exam Life Insurance?
By Kat Tretina MONEY RESEARCH COLLECTIVE
When it comes to protecting your family financially, you may be falling short if you don’t have life insurance. You’ve likely heard how important it is to take out a life insurance policy, particularly while you’re relatively young and healthy. Yet just 52% of Americans reported having life insurance in 2021, according to LIMRA’s Insurance Barometer Study.
One of the reasons people put off getting coverage — besides the fact that many overestimate the average cost of life insurance — is because they think the application process will be too rigorous.
However, getting life insurance may be easier than you think. With today’s technology, you can apply for no-exam life insurance online and get coverage within hours to days, not weeks or months. Depending on the type of no-exam life insurance policy you choose, the pricing can be competitive with traditionally underwritten policies and you can get a substantial amount of coverage.
Table of contents
- What is no-exam life insurance?
- How does no-exam life insurance work?
- How to avoid getting turned down for a no-medical-exam life insurance policy
- The bottom line
What is no-exam life insurance?
As the term implies, no-exam life insurance allows you to seek coverage without the pokes and prods of medical examinations and tests. You may not be able to escape health disclosures entirely, though; some types of policies require that you answer a questionnaire about your medical history and that of your blood relatives.
To better understand the differences between no-exam life insurance and traditionally underwritten policies, it’s important to know exactly what the traditional underwriting process involves.
How does traditional underwriting work?
A traditional life insurance policy, also known as a fully underwritten plan, involves an in-person medical exam. During the exam, a nurse or technician will check your blood pressure and weight, and will also collect fluids, including blood, saliva and urine samples.
Traditionally underwritten policies also require a review of your prescription records and a health questionnaire. Some companies will also require a treadmill test or perform an EKG.
The entire process, from the time you contact an agent to when you receive your policy documents, can take weeks or even months to complete.
How does no-exam life insurance work?
No-exam coverage aims to change how consumers purchase life insurance. Instead of waiting weeks for coverage, no-exam life insurance policies allow you to get coverage within days — if not hours — of submitting an application.
There are different types of no-exam life insurance policies, but they all allow you to get life insurance without medical exams or lab work. However, not all policy types guarantee eligibility for coverage. Some require you to answer questions or provide details about your medical history. Insurers use this data to determine if you qualify for insurance.
Types of life insurance with no medical exam
Depending on your needs, age and health, you may be eligible for one or more no-exam life insurance options. As this table comparing the different types shows, the policies vary in what they offer and what they require from you. We’ve also included traditionally underwritten policies for comparison.
| Traditionally Underwritten | No-Examination Policy Types | ||||
| Guaranteed Issue | Simplified Issue | Accelerated Underwriting | Employer-Offered | ||
| Type of Coverage | Term or permanent | Permanent | Term or permanent | Term or permanent | Term or permanent |
| Coverage Amounts | Coverage over $10 million available | Up to $25,000 | Up to $1.5 million | $100,000 to $1 million | Typically based on salary |
| Medical Exam Required | Yes | No | No | No | No |
| Interview/Questionnaire Required | Yes | No | No | Yes | No |
| Time to Get Policy | 2 to 12 weeks | Minutes | Minutes | No more than 48 hours | Minutes |
Here’s more on the advantages and disadvantages of each type, and on the kinds of people each suits best.
1. Guaranteed issue
Best for: Individuals 55 years of age or older with existing health issues that have been denied coverage in the past.
Guaranteed issue policies, sometimes called final expense policies, are whole life insurance policies with relatively small death benefits. Guaranteed issue life insurance policies, as the name implies, guarantee the applicant’s acceptance. You cannot be denied life insurance coverage based on your health history, and you can purchase coverage quickly.
Pros
- No questions asked: Guaranteed issue policies don’t require exams, interviews, or health questionnaires. Even if you have a history of medical issues that disqualify you for other types of life insurance, you can qualify for a guaranteed issue policy as long as you meet the issuer’s age criteria and other requirements.
- Fast issuance: Because there are no exams or medical questions, you can get coverage within minutes.
Cons
- Low coverage amounts: Guaranteed issue policies generally have low death benefit values, typically of $25,000 or less. Although such a sum may be enough to cover funeral expenses, it’s unlikely to provide your loved ones with further financial protection.
- Higher premiums: Compared to other types of life insurance with similar death benefit amounts, guaranteed issue policies tend to be much more expensive. If you are relatively healthy and eligible for other policies, opting for another form of life insurance can get you more coverage at a lower cost.
- May offer graded death benefits: Depending on the policy and the life insurance company underwriting it, guaranteed issue policies may have graded benefits, meaning your beneficiaries receive a reduced amount if you pass away within the first few years after the policy was issued.
2. Simplified issue
Best for: Individuals in relatively good health that want to buy life insurance quickly.
Simplified underwriting life insurance, also known as simplified issue, offers a streamlined application process. You can purchase coverage after answering health questions; there is no medical exam or lab work.
Pros
- Quick and easy coverage: Simplified issue life insurance allows you to purchase and get coverage within minutes.
- Higher coverage amounts: While guaranteed issue policies usually only provide $25,000 or less of coverage, simplified issue policies allow you to get up to $2 million.
- Term or whole life: Simplified issue policies can be term or whole life coverage, so you can choose the type of life insurance that works best for you.
Cons
- More expensive than traditionally underwritten policies: Simplified underwriting life insurance tends to be more expensive than fully underwritten policies to compensate the insurer for the higher risk a streamlined application process entails.
- Limited eligibility: Not everyone is eligible to apply for a simplified issue policy. Most companies only offer simplified underwriting to individuals between certain ages, such as 18 to 50. If you are older than that, you will not qualify for coverage.
- You may be disqualified due to health or other issues: With simplified issue policies, insurers have strict exclusions for certain conditions or medical histories. For example, if you have a history of medical conditions like severe depression, hypertension or COPD — or if you are obese — your application will usually be immediately declined, with no way to appeal the decision. In contrast, with traditionally underwritten policies you may be able to get coverage if the results of your medical exam and bloodwork are in the healthy range for such conditions.
3. Accelerated underwriting
Best for: Healthy individuals that value competitive premiums over speed.
Like simplified issue policies, accelerated underwriting policies offer a quicker, easier application process. Companies that offer accelerated underwriting use data science to evaluate applicants. With their algorithms, they are able to give relatively healthy individuals coverage while minimizing the insurer’s risk.
Pros
- Comparable pricing to traditionally underwritten policies: While guaranteed issue and simplified issue policies are usually much more expensive than traditionally underwritten ones, accelerated underwriting coverage is comparatively less costly. The pricing of an accelerated underwriting policy is often competitive with the premiums for a traditionally underwritten plan.
- No exams required: Although its pricing is similar to that of a fully underwritten policy, accelerated underwriting doesn’t require medical exams or bloodwork.
- Substantial coverage available: Unlike guaranteed issue plans, which have very small death benefits, accelerated underwriting provides higher coverage. Most plans offer benefits between $100,000 and $1 million.
Cons
- Application process can take more time: Guaranteed issue and simplified issue policies can give you coverage in minutes. By contrast, accelerated issue life insurance applications can take days to process.
- Non-health factors can affect your eligibility: Non-health factors are used to determine your eligibility for coverage and your premiums. Things like a history of moving violations, bankruptcy and criminal charges can affect your ability to get coverage.
- Not everyone will qualify for accelerated underwriting: If you have certain risk factors, such as pre-existing conditions, you’ll have to complete a medical exam and get a doctor’s written statement, which can extend the application process timeline.
4. Employer-offered coverage
Best for: Individuals that work for an employer that offers group life insurance.
Many employers offer group life insurance policies to their workers. If you qualify, you can get free or low-cost coverage without undergoing a medical exam or filling out a health questionnaire.
Pros
- May be inexpensive or free: With group life insurance policies, your policy, or part of it, may be free. Your employer may cover the cost up to a certain face amount; if you want to purchase additional coverage, you’ll typically have to cover the premium yourself.
- You can get coverage within minutes: If your employer offers group life insurance, you can fill out the paperwork with your human resources representative. Your coverage can go into effect within minutes of the insurer receiving your information.
- Policies are usually guaranteed: Group life insurance policies are guaranteed up to a certain death benefit level. No medical exam is required, and you cannot be denied based on your health history.
Cons
- Insufficient coverage: Although group life insurance policies are convenient, they may not provide enough coverage. According to LIMRA, the median life insurance coverage amount is either $20,000 or the equivalent of one year’s salary. Those amounts won’t provide enough protection for most families.
- May not be portable: Since your policy is offered as a group life benefit, you may lose your eligibility for coverage if you lose your job or switch employers.
- Limited coverage options: Group life policies have limitations. Since your employer chose a particular company, you can’t shop around. If the insurer doesn’t offer the riders or coverage amounts you want, you’ll have to get a policy elsewhere.
What does no-medical-exam life insurance cover?
As with traditional policies, life insurance that requires no medical exam covers your family in the event you die. With most types of no-exam policy, the coverage may either be permanent — for as long as you live — or for a certain term. With term life insurance, your beneficiaries won’t receive a death benefit if you outlive the policy expiration date.
Who is eligible for life insurance with no medical exam?
Eligibility for life insurance without the need for a medical examination varies by the type of policy you are seeking.
With two policy types — guaranteed issue policies and group life insurance policies — few if any people are denied coverage. Other varieties of no-exam coverage use data other than testing or examinations to determine eligibility, and so may turn away some applicants.
Benefits and downsides of no-medical-exam life insurance
No-exam life insurance policies are convenient, but they are often more expensive than traditionally underwritten policies. If you’re trying to decide which approach is best, no-exam life insurance can make sense in the following scenarios:
- You’re afraid of needles or blood draws: If you are afraid of needles or get anxious at the idea of fluid collection, a fully underwritten policy may be too invasive for you. No-exam life insurance policies can be good alternatives.
- Your schedule makes it difficult to schedule an exam: If you have a busy schedule, setting aside an hour for a life insurance medical exam may be difficult. No-exam policies allow you to get coverage faster, without having to leave your home.
- You want coverage right away: Fully underwritten policies can take weeks or even months to process. If you want protection right away, no-exam life insurance policies allow you to get coverage as soon as the same day you apply.
Although no-exam policies can be useful for some people, they’re not for everyone. If you fit into one of the following scenarios, you may be better off with a fully underwritten policy:
- You want more than $2 million of coverage: No-exam policies have more limited coverage amounts than traditionally underwritten policies. If you want a policy with a higher death benefit amount, you’ll need to get a fully underwritten policy.
- You have existing health conditions: If you have health issues like a history of mental illness, COPD or hypertension, it can be difficult to qualify for an accelerated or simplified issue policy. However, you may qualify for a fully underwritten policy with a medical exam and a statement from a physician.
- You want a more complex policy: No-exam policies tend to be relatively simple term or whole life policies. If you want a more complex policy, such as variable universal life or joint survivorship plan, you’ll probably need to work with an insurer that has fully underwritten options.
Cost of life insurance policies with no medical exam
In general, no-exam life insurance policies are more expensive than traditionally underwritten life insurance plans.
However, those in excellent health may find that accelerated issue life insurance policies have premiums that are comparable to the premiums of fully underwritten policies. Like fully underwritten policies, accelerated issue policies assess the applicant’s physical fitness; it just uses digital data rather than a medical exam, so the rates are similar.
How to avoid getting turned down for no-exam life insurance
Despite the lower bar for approval of life insurance that requires no medical exam, acceptance is not assured with all forms of this coverage. Here are ways to maximize your odds of successfully getting a policy:
Consider guaranteed issue coverage
Guaranteed issue policies don’t require exams, interviews, or health questionnaires. Even if you have a history of medical issues that disqualify you for other types of life insurance, you can qualify for a guaranteed issue policy as long as you meet the issuer’s age criteria and other requirements.
Speak to a independent insurance agent
Eligibility for no-exam life insurance varies by the type of policy you choose, as we’ve noted. Your odds of approval may also be different among various insurers that offer the same policy types.
Those variations make it worth considering getting professional help with your search for coverage. An independent insurance agent — one who doesn’t work for any one insurer — can shop the market for you, mindful of how your eligibility matches the requirements and premiums of various providers. Alternatively, an independent financial advisor might be able to play much the same role.
Check your employer’s group life insurance
Many employers offer group life insurance policies to their workers; ask your HR department if they offer this benefit. If the company offers this perk, you’ll be able to get free or low-cost coverage without undergoing a medical exam or filling out a health questionnaire.
The amount of coverage offered for free with the program may be less than you need. If you can’t qualify for traditional life insurance — which is typically less costly — to cover the gap, consider paying to acquire more through your employer.
What to do if your application is denied
Being turned down for no-exam life insurance needn’t be the end of your coverage options. In response to a denial, begin by taking any of the above steps you haven’t yet considered.
Also, in the event you already applied for (and were denied) a traditionally underwritten plan, consult an independent agent or another advisor to see if lifestyle changes might affect your eligibility for that form of insurance.
For example, regular policies are sometimes denied due to high blood pressure related to obesity. Dieting may allow you to eliminate the issue, or at least manage it enough to be insurable — and to be more healthy in the deal.
The bottom line on no-exam life insurance
If you’ve been putting off purchasing life insurance because you were concerned about the rigorous application process, no-medical-exam life insurance products are an alternative.
Depending on your age, health and desired coverage amount, you could get a term or whole life insurance policy much faster than if you opted for a fully underwritten policy. And, you can skip the medical exam portion of the application.
If you’re ready to purchase life insurance, our guide on the best life insurance companies can be a great place to start your search.
