What Is No-Exam Life Insurance?
No-exam life insurance is exactly what it sounds like: a policy that doesn't require you to take a medical exam to get approved. Instead of sending a paramedical examiner to your home to take your blood pressure and draw blood, the insurance company evaluates your risk using a health questionnaire and digital data points, such as your prescription drug history, motor vehicle record, and the Medical Information Bureau (MIB).
Is No-Exam Life Insurance Right For You?
No-exam policies are excellent for people who want coverage quickly—often within minutes or days rather than weeks. They are also ideal for individuals who are needle-phobic or haven't seen a doctor in a while. However, if you are young and in perfect health, you might get a slightly better rate by taking the medical exam (a fully underwritten policy), as it proves your good health to the insurer.
Types of No-Exam Life Insurance
Simplified Issue: You fill out a detailed health questionnaire but skip the physical exam. Approval is fast, and coverage amounts can reach up to $2 million depending on the insurer.
Guaranteed Issue: These policies ask no health questions and require no exam. Approval is guaranteed as long as you meet the age requirements. However, coverage limits are very low (usually under $25,000), premiums are high, and there is often a two-year waiting period before the full death benefit is payable.