How Does No Exam Life Insurance Work?
No medical exam life insurance, as the name explicitly states, means you can get coverage without meeting with a medical professional. Blood work and a urine sample are not required.
Instead, the entire underwriting process is digital, allowing for approvals usually in less than 3 business days.
To determine your eligibility, the insurer will gather data from the following sources (when you sign the application, you’re giving authorization for them to obtain this data):
- Asking health questions (guaranteed acceptance policies have none).
- Motor vehicle report from your state’s DMV.
- Medical Information Bureau (MIB).
- Prescription and other medical data from Milliman Intelliscript.
- Background information from LexisNexis.
All this data is then fed into the insurance company’s algorithm to evaluate your eligibility. The insurer will either issue an approval, decline, or request more information, such as a telephone interviewTelephone Interview
Telephone interviews are ordered by an underwriter when they see ambiguous medical information in your history that requires further clarification. It could be based on medications or various diagnoses. An underwriter will need to speak with the insured verbally to ask a series of questions to address the insurer's concerns. with you or an attending physician’s statementAttending Physician's Statement
A detailed report from an applicant's medical provider that clarifies the nature of some specific medical issues. The letter will typically include the diagnosis, treatment, and prognosis of said conditions. An APS is requested only for no-exam life insurance applications when the insurer identifies an ambiguous condition that requires clarification from a physician, so that the insurer can properly assess the risk. In the absence of the APS, the identified ambiguous information is generally considered too high a risk and thus warrants a decline. If the applicant still wants the insurance policy, the APS is an absolute requirement (when requested)..
Understand that an insurer may require a medical exam. However, that will generally only happen if you have a really complicated health history, have had a recent major health event, or your medications don’t align with your professed medical history.
Types Of Life Insurance With No Medical Exam
Life insurance companies offer all major types of life insurance without a medical exam, including term life, whole life, and universal life.
There are three types of no-exam underwriting that insurers may utilize:
- Accelerated underwriting: The insurer asks health and lifestyle questions and gathers health data from various databases. This option has the highest coverage limits and the lowest cost. However, it’s generally intended for those in good health. Those with a complex health profile will likely be declined for this option or be required to take an exam.
- Simplified issue: Very similar to accelerated underwriting, except there are usually fewer questions to answer, lower coverage limits, and a higher cost. Simplified issue life insurance policies will also take longer to be approved than an accelerated underwriting option.
- Guaranteed acceptance: There are no health questions to answer, and the insurer does not obtain any information about your medical history. Since your acceptance is guaranteed, there will be a two-year waiting period. Death during the waiting period will result in a refund of your premiums. Guaranteed issue policies are the most expensive type of life insurance you can buy, given the enormous risk the insurer takes in insuring your life while knowing nothing about your health.
| Features | Accelerated Underwriting | Simplified Issue | Guaranteed Acceptance |
|---|---|---|---|
| Health questions | Yes | Yes | No |
| Medical exam | No | No | No |
| 2-year waiting period | No | Sometimes (not often) | Yes |
| Typical approval time | Less than 3 business days | 1-10 business days | Instantly |
| Available policy types | Term life, whole life, universal life | Term life, whole life, universal life | Whole life |
| Typical coverage limits | $100,000-$3 million | $5,000-$500,000 | $2,000-$25,000 |
| Cost basis for no exam policies | Cheapest | Medium | Most expensive |
| Health requirements | Healthy | Moderate | Health is not a factor since acceptance is guaranteed |
| Best for | Very healthy applicants who want coverage fast and don't mind paying a slightly higher premium to avoid a medical exam and long application process | Those who want coverage under $500K and may have some moderate health issues | Very unhealthy applicants who cannot qualify for policies with health questions |
How Much Does No Medical Exam Life Insurance Cost?
The cost of no medical exam life insurance depends on the type of policy, your age, gender, health history, tobacco or nicotine use (if any), lifestyle, and the amount of coverage you choose.
It’s important to note that no-exam policies are more expensive than fully underwritten options. Without a medical exam, the insurer does not have accurate, recent blood work, nor will they have all your formal medical records. Due to this unknown information, they take on a greater risk in insuring your life. That increased risk is why the cost is higher.
However, no medical exam underwriting has substantially improved over the years, so forgoing the exam often does not lead to a significant price increase.
Below are some sample life insurance rates for policies that don’t require a medical exam.
No exam 10-year term life insurance rates
No exam 20-year term life insurance rates
No exam 30-year term life insurance rates
No exam whole life insurance rates
No exam universal life insurance rates
No exam final expense insurance rates
No exam guaranteed acceptance life insurance rates
Pros And Cons Of No-Exam Life Insurance
- No medical exam, which means no lab work or meeting with a medical professional.
- Approvals are quick, usually within 10-15 minutes or a few days on the high end.
- Certain no-exam products are designed to accept high-risk applicants who might otherwise be unable to obtain coverage.
- The application can typically be done completely online.
- Lower coverage limits than fully underwritten policies
- Typically higher in cost than fully underwritten options
- May still be required to provide a letter from your physician or formal medical records.
- Those without a complex medical history could save money by taking a medical exam.
Do No Medical Exam Policies Have A Waiting Period?
Some no-exam life insurance policies have a waiting period, but most don’t. It depends on the type of policy and the company. What is certain is that all guaranteed issue life insurance policies have a waiting period. These plans have no exam, nor do they have medical questions.
No Exam Vs. No Health Questions (Guaranteed Acceptance)
A life insurance policy with no exam is very different than a policy with no health questions. As you look into life insurance options, it’s important to understand the differences among them.
| Features | No Exam | Guaranteed Acceptance |
|---|---|---|
| Medical exam | No | No |
| Health questions | Yes | No |
| 2-year waiting period | No | Yes |
| Usual coverage limits | $2K-$3 Milllion | $2K-$25K |
| Very high cost | No | Yes |
| Typical min age to apply | 18 | 45 |
| Types of policies available | Term life, whole life, & universal life | Whole life |
No Exam Vs. Fully Underwritten
No-exam life policies differ significantly from “fully underwritten” options.
Fully underwritten life insurance policies require a physical exam in addition to answering health and lifestyle questions. You must meet with a nurse, who will obtain blood and urine samples. In addition, they will measure your height, weight, and blood pressure.
Finally, the insurer will order copies of all your medical records from all physicians or medical facilities that you’ve seen within the last decade. Once they have all this data, they will then determine if you’re approved and the final premium. All in, this process usually takes 4-6 weeks before the application is approved.
One of the primary benefits of a fully underwritten policy is higher coverage maximums. Life insurance policies with no medical exam generally top out at 2-3 million. Fully underwritten options can go as high as 50 or 100 million.
By far the biggest benefit of fully unwritten options is the lower cost. The cost is lower because the insurer knows everything there is to know about your health. In turn, they take on less risk since there are no unknowns about your health. As with all forms of insurance, a lower risk profile translates into lower costs.
Below is a table that compares the price of no-exam life insurance to fully underwritten options that do require an exam.
Should You Buy No-Exam Life Insurance?
No medical exam life insurance, as with all things, there are pros and cons to weigh. That said, a no-exam policy is worthwhile for those in the following circumstances:
- You have an aversion to needles.
- Want or need coverage quickly rather than waiting 4-6 weeks for approval.
- Don’t mind paying a slightly to moderately higher premium for the convenience of no exam and quick approval.
- Busy professionals who lack the time to meet with a nurse to complete the exam.
- Those who need less than $100,000 in coverage (fully underwritten policies usually require you to buy $100K or more).
A no-exam policy would not make sense if any of the following apply to you:
- You want the absolute lowest premium and don’t mind jumping through some hoops to get it.
- Want a very high coverage amount, such as $5 million or more.
- Have a complex medical history, where the insurer requires an exam and full medical records. That would allow them to accurately assess your risk and thus be able to offer coverage.
Alternatives If You Don’t Qualify For A No-Exam Life Policy
If you apply for a no medical exam life insurance policy and are subsequently declined, here are some alternative options to pursue:
- Fully underwritten life insurance: These do require a medical exam and all your medical records.
- Final expense insurance: Technically, a final expense policy is a type of no-exam life insurance. However, these are special, small, simplified issue whole life policies with very lenient underwriting. It’s very rare for someone to be declined for a final expense policy.
- Guaranteed acceptance: These have no health questions because your approval is guaranteed. You cannot be declined. Be mindful of the two-year waiting period, which refunds your premiums only if you die during that period.
- Group life insurance: If you’re working, your employer may offer group term life insurance. Being part of a group usually means no individual underwriting so that you won’t be declined due to prior health issues.
- Apply again later: If you’re on track to improve your health and lifestyle, you may qualify for a no-exam policy after some time. Be sure to clarify with the insurer you applied with why they denied you. That way, you know what specific factor(s) in your life you need to improve.
Frequently Asked Questions
Life insurance without a medical exam will almost always cost more than fully underwritten policies that do require an exam and medical records. There are instances where no exam coverage can be equal or cheaper (rarely). However, by and large, it will cost slightly or moderately more than policies with an exam.
All life insurance policies have age limits. For term life and universal life, age 75, or rarely 80, is usually the maximum age at which you can obtain a new policy without taking a medical exam. For whole life insurance, the maximum age you can qualify for a new no-exam policy is age 90.
Having any pre-existing conditions won’t automatically disqualify you from qualifying for a no-exam life insurance policy. However, depending on the nature and severity of your condition, it may result in a decline. It all depends on the details of your health history. It’s wise to speak with an experienced licensed agent who can give you honest expectations based on your background.
All life insurance policies with or without a medical exam have an incontestability clause. This clause gives the insurer the right to investigate death claims that occur within the first two years of the policy. If they find evidence of fraud or misrepresentation, they will deny the claim and simply refund your premiums. If they don’t, they will pay the full death claim. This clause cannot be avoided, and it only lasts two years. After two years, insurers can no longer investigate death claims.
No life insurance policies check your credit when determining your eligibility.
No exam life insurance policies can range from $5,000 to $2-$3 million (If you want more than $3 million, you will need to complete a medical exam.) The specific coverage minimums and maximums, approval times, and cost basis vary by provider and policy type.
- Nationally licensed life insurance agent with over 16 years of experience.
- Personal annual production that puts him in the top .001% out of all life insurance agents in the nation.
Anthony Martin is a nationally licensed insurance expert with over 16 years of experience and has personally served over 10,000 clients with their life insurance needs. He frequently authors entrepreneurial and life insurance content for Forbes, Inc.com, Newsweek, Kiplinger, and Entreprenuer.com. Anthony has been consulted as an expert life insurance source for dozens of high-profile websites such as Forbes, Bankrate, Reuters, Fox Business, CNBC, Investopedia, Insurance.com, Yahoo Finance, and many more.
- Nationally licensed life insurance agent with over 20 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 20 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 15 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 15 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
- Nationally licensed life insurance agent with over 20 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 20 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 15 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 15 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
Choice Mutual often cites third-party websites to provide context and verification for specific claims made in our work. We only link to authoritative websites that provide accurate information. You can learn more about our editorial standards, which guide our mission of delivering factual and impartial content.
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Medical Information Bureau. https://mib.com/
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Milliman Intelliscript. https://www.rxhistories.com/our-company/
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LexisNexis. https://risk.lexisnexis.com/about-us
