No Medical Exam Life Insurance

How much life insurance can I get without a medical exam? It benefits people (including seniors) who want no waiting period but there are cons. Find out the true cost of skipping the exam.

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Shopping for life insurance can be a complicated process, especially when you need a medical exam to qualify. Not everyone qualifies for traditional life insurance policies. But you still have options with no exams and quick underwriting.

Keep reading to see if no medical exam life insurance is the right choice to protect you and your family.

What is no medical exam life insurance?

Most insurance companies require a medical exam. This involves meeting with a medical professional who will:

• Ask specific questions about your health
  
• Measure your height and weight
  
• Measure your blood pressure, pulse, and heart rate
  
• Collect samples of your urine and blood

If the results indicate a health condition or chronic illness, you could be denied a policy or have to pay a higher premium.

Depending on the company, you may have the option to skip the medical exam, particularly if you know you have a chronic condition or special circumstance. (Being a smoker or having a dangerous job or hobby are two examples.)

Skipping the exam typically means underwriting decisions are quicker. But these policies typically cost more AND provide less coverage than a fully-underwritten policy.

Why? Because the insurance company has less knowledge about your personal level of risk.

Different types of no medical exam insurance

There are generally two types of no medical exam insurance:

Guaranteed Issue
With this policy, there is no medical exam and underwriters don't have access to your medical records. This generally is considered a last resort for coverage.

During the application, the insurance company asks a variety of generic, yes/no questions regarding:

• Tobacco use and smoking
  
• Current or recent hospital stays
  
• History of HIV or AIDS
  
• Terminal illnesses

The company will consider this info to decide whether or not to insure you. This will usually take place within 24-48 hours. If you are approved, your policy death benefit will likely be graded.

Meaning, if you happen to die within 2-3 years of buying the policy, your beneficiary would only get refunded on the premiums you paid (and interest), NOT the full payout.

If you live beyond three years and continue to pay the premium on the policy, your beneficiary would then be eligible to receive for the full death benefit amount.

Simplified Issue
Also called "final expense insurance," this type of policy also doesn't involve a medical exam. However, underwriters ask more in-depth questions and have access to your medical records.

These questions are meant to be more specific and telling of your health and medical conditions. They will ask about:

• Current and recent employment during the last 6 months - 1 year

• Use of amphetamines, narcotics, or controlled substances during the past 2 years

• History of radiation therapy or chemo

• Trouble with daily tasks, such as bathing, eating, dressing, using the restroom, or general mobility

• Do you depend on the use of oxygen tanks?

Depending on your answers and your medical records, you may not be approved for coverage. This policy is typically less expensive but still costs more than medically underwritten policies.

Keep reading to learn the pros and cons of no medical exam policies.

Pros of No Exam Life Insurance

Avoid Getting Denied Unnecessarily
With a policy requiring a medical exam, you could be denied due to an undiagnosed health condition. Or your approved rate may be significantly higher each month than your original quote.

It's Faster
You don't need to schedule an exam, go to a facility, get the exam, and wait for the results to reach the insurer. As such, a no medical exam policy approval process goes much faster.

It's also less likely you will procrastinate scheduling and getting the exam. So you'll get the coverage you need when you need it.

Shorter and Simple Application
With a medical exam policy, the applications are much longer, thorough and detailed. In some cases, you may also have to talk on the phone to an insurer.

Shorter Approval Times
The speed does depends on if you are applying for a Guaranteed Issue or Simplified Issue policy.

Because the underwriter will likely ask for your medical records with a Simplified Issue policy, approval could take a little longer.

Easier to Qualify
By only having to answer questions online (or over the phone, in some cases), you are much more likely to qualify than you are if you took a medical exam.

Direct Online Sign-Up (in some cases)
Some insurance companies now allow you to complete your application by yourself online. This gives you the opportunity to fill out and submit the application, and receive an answer—all without talking to a real person.

While there are clear benefits, no medical exam insurance does have some drawbacks. We cover those below.

Cons of No Exam Life Insurance

More Expensive
The underwriter doesn't have in-depth - or in some cases, any - knowledge of your health history. This means they are taking a much greater risk by insuring you.

Fewer Coverage Options
Amount of coverage is usally lower for no exam insurance (more on that below).

Underwriting May Be Unavoidable
Even without a medical exam, an underwriter may do research on you.

Why opt for a no medical exam policy?

A no medical exam life insurance policy may work better for your situation than one with a medical exam requirement. Consider:

Is a Life Insurance Policy Being Mandated in a Divorce?

In many settlements, alimony payments are owed to the other spouse, which would cease upon his or her death. You should have a life insurance policy to cover those payments if the ex-spouse passes away. If it's a legal obligation, you may need coverage quickly.

Were You Declined for Life Insurance in the Past?

If you've previously applied for an exam policy and were denied, you may have a better chance of being accepted with a no exam policy.

Even though you still have to answer questions about your health, these underwriters are often more lenient with requirements. You may also be able to get covered under higher premiums for a condition you were denied for with another carrier.

Do You Need to Secure a Business Loan?

Many bank lenders require a life insurance policy on the person applying for the loan. This covers the bank if the person passes away before paying off the full cost of the loan.

Do You Have a Dangerous Job or Hobby?

Often, you'll be denied coverage with a traditional company. They simply don't want to take on the risk of you dying before paying off the full policy.

However, without a medical exam and more lenient questions, this may not be an issue for a no exam policy.

Have You Seen a Doctor Recently?

If you haven't been to your doctor in several years, you don't know what your blood work or other medical tests may show.

If something does come up, you could easily be denied coverage. You may want to play it safe by applying for a policy with no medical exam.

How Do You Plan to Use the Policy?

Do you want life insurance coverage as protection for your family to pay off final costs? Or to help raise your family if you die prematurely?

Then a policy with an exam may be a better option for you. The coverage amounts are typically higher and you likely will pay significantly less money in premiums.

How Fast Do You Need It?

Most traditional underwriting takes 4-8 weeks or longer. But with a no exam policy, you could get coverage in as little as 24 hours (or less if they offer online policy purchase).

If you have a lapse in coverage, your policy is expired, or you need immediate coverage for another reason, this might be a good choice for you.

Do You Have a Fear of Needles?

Most people don't enjoy getting stuck with a needle. But for some, this can be a deal breaker.

During a medical exam for a policy, you'll be required to get blood drawn. If you can't even fathom the thought, a no exam policy might be the route for you.

What Should I Look for When Deciding on a Type of Policy?

You have several options when it comes to no medical exam insurance. Understanding your needs can help you make the right decision.

Here are some common application mistakes to avoid:

• Not Comparing Companies
  
• Paying Too Much
  
• Settling for the First Company You Find
  
• Assuming You Only Have 1 or 2 Options

When comparing policies, pay particular attention to these features:

Death Benefits
Understand what percentage of the death benefit your beneficary will receive. And make sure you know when it will be paid out. For example, some companies take 2-3 years to reach 100% of the payout.

Premium Amount
Think about the affordability of the premium, especially if something were to happen and you didn't have a steady income for a few months.

Typically these no exam policies cost more. If you can't afford the premium, you may want to take the time to complete a medical exam for a lower premium policy.

Insurance Carrier
After getting quotes, you'll want to research the companies before making a final decision. Remember: price isn't everything.

Look at star ratings and reviews on the company, both professional (like Standard & Poor's, A.M. Best, Fitch, and/or Moody's) and peer (current or past customers).
And pay attention to their financial strength and reputation, as well as customer service.

Type of Policy
Many insurers offer two types of life insurance policies: term and whole.

Convenience
No exam policy is meant to be easier and quicker to purchase compared to a traditional exam policy. When you are applying for one of these policies, make sure that's actually true.

How do you get life insurance without a medical exam?

Once you've done your research, you can get a no exam life insurance policy with these simple steps.

1. Get Several Quotes: Quotes can be requested in person, over the phone, or online (such as on Sproutt). Select the policy quote that's best for you.

2. Submit an Application: The application will consist of a variety of simple questions about your general health. When you apply, underwriters (who work for the insurance company) will determine the risk your policy would create for the insurance company.
   Key Fact: Healthier people carry less risk than those with a chronic or unmanaged condition), The greater your risk, the less likely you are to be approved.
   

3. Wait for Approval: The underwriter may also seek more information, like requesting medical records from your doctor. This may take longer.

   Otherwise, you are typically approved and the policy goes into effect.

Insurance Fraud: Two-Year Contestability Period

It's much easier for people to commit insurance fraud with Guaranteed or Simple Issue policies. Since there's no exam, it's easier to lie about their health to convince the company into approving them.

Most insurance companies have a two-year contestability period. This means they can deny a claim for life insurance within the first two years after it is issued.

If you die within those first two years (perhaps because you weren't honest about a terminal illness), the company will attempt to uncover documentation of any false answers in your case.

They can then try to withhold payment from the beneficiaries. In other words, your loved ones won't get the death benefit payout. Companies can even deny your claim, meaning you aren't covered by the insurance policy at all.

Comparing Companies

We've gathered information from a number of insurance providers, so that you can compare companies and make the best decision for your situation.

American National

The company offers a variety of life insurance products such as whole life, term life, universal life, indexed universal life, and credit life.

American National provides a Quote Calculator right on their website, where you can answer a few questions and estimate what your life insurance needs are.

To get a quote from American National, you can locate an agent through their local directory found on their website, or by calling their Life and Annuity Contact Center.

American National offers an accelerated underwriting option called Xpress Plus, which provides automatic underwriting for individual life policies.

Fidelity Life

Since 1896, Fidelity Life Association has been committed to "helping middle-American families achieve greater financial security by making life insurance more affordable and accessible."

In 2017, Fidelity Life reported $31 billion life insurance policies in force and $61 million net life insurance premiums. With $406 million in total assets, their financial results tout "strength, stability, and sound financial management."

Fidelity offers a variety of life policy options, including their RAPIDecision, which allows you to qualify for a high face amount of coverage within 24-48 hours. There are no exams, tests, waiting periods or processing delays.

Foresters Financial

Foresters Financial was founded in 1874, providing 140 years of investment, life insurance, retirement and savings solutions. More than 3 million customers later, Foresters proudly invests millions into local communities and worldwide causes to give back to those they serve.

With $45.1 billion in total funds under management and financial reserves and $17.5 million in total assets reported in 2017, they have earned solid "A" ratings—and have for the past 17 years.

Life insurance options include term life, whole life, universal life, variable universal life, and variable life.

Haven Life

Haven offers fully medically underwritten term life insurance, as well as non-medically underwritten (no exam).

Haven Life is different because you can apply online for a term policy and find out immediately if you are approved for coverage. They are digital-first with this option, as well as their paperless processing.

They also offer a Quick Estimate Tool where you can get a range of rates for policies and see other real rates for current policyholders.

North American Company

The company is independently and privately owned and is part of the Sammons Financial Group, Inc. (SFG), which offers products like life insurance, annuities, and retirement solutions.

In 2017, they reported more than 609,000 life insurance and annuity policies held with more than $25.6 billion in assets and $120 billion life insurance in force.

North American offers Term Life, Universal Life, and Indexed Universal Life insurance options.

You can also get an Instant Term Quote on their website by completing a few short questions. They offer WriteAway for their ADDvantage Term series, allowing applicants under age 50 to get approval within 48-72 hours.

Principal

Principal offers retirement services, insurance solutions, and asset management services. They have $666.6 billion in total assets and $2.5 billion net income. Their common purpose is "to give you the financial tools, resources, and information you need to live your best life."

A member of the FORTUNE 500, Principal is ranked for insurance solutions, workplace excellence, technology innovation and more.

Principal offers both term (10-30 years) and permanent life insurance solutions. Their four major types of permanent solutions include universal life, indexed universal life, variable universal life, and survivorship insurance (covers two lives with a death benefit payable upon the death of the second life).

Principal also offers group benefits for businesses.

Sagicor

Sagicor Life Insurance Company is licensed in 45 states and Washington, D.C. It's a wholly-owned subsidiary of Sagicor Financial Corporation Limited (SFC), one of the oldest insurance groups in America operating in 22 countries.

Sagicor offers both permanent and term life insurance options.

One thing that makes Sagicor different is they offer Accelewriting, an automated underwriting system that utilizes an eApplication, giving you a decision within minutes with no medical exam. Policy eDelivery is also available.

Sage Term, their Term option, is available for 10-20 years. It offers guaranteed level premium during the initial term and the payout can help provide income due to a terminal condition. The death benefit is available until age 95 and offers the ability to convert to a permanent life policy.

Banner Life

Owned and operated by Legal & General America, Banner Life insures 1.3 million+ customers in the US and has been providing coverage for over 70 years.

Legal & General is a top five provider of term life insurance in the US, issuing more than $53 billion in new coverage in 2017 to bring their total to $703 billion, and it's the 9th largest insurance company in the world.

Policy offerings include Term, Universal Life, Final Expense Insurance.

Banner life offers several additional policy features, including:

• Waiver of Premiums
  
• Flexible Payment Schedules
  
• Term Riders
  
• Accelerated Death Benefit Rider
  
• Children's Life Insurance Rider

Access to these features must meet specified criteria outlined by your policy.

TransAmerica

Transamerica is owned by Aegon Group, one of the leading providers of life insurance, serves more than 13 million customers in the US with more than $1.42 billion in underlying earnings and $1.18 billion of insurance policies in force as of 2017.

The focus of this company is not only to provide coverage, but also to increase the health and wellness of their policyholders through education, an exclusive health community, and other wellness services. They also focus on innovation and longevity, and the importance of trust between them and their policyholders.

Transamerica offers several life insurance policy options including Whole, Term (10-30 years), Universal Life, Index Universal Life, and Final Expense Life.

Mutual of Omaha

Mutual of Omaha is different in that it is a mutual company, and is therefore owned by policyholders. For more than 100 years, they have been providing a variety of life insurance, financial and banking products.

Mutual of Omaha provides two types of life insurance: term and permanent (Whole and Universal).

Gerber Life

Gerber Life is a newer company, founded only in 1967, and was founded specifically to provide life insurance for young families on a limited budget.

Today, Gerber Life has more than $45 billion of life insurance in force and provides more than 3.3 million policies. They specialize in child life insurance plans, in addition to other adult life insurance policies.

As for adult policies, Gerber Life offers Term Life, Whole Life, Guaranteed Life, and Accident Protection.

Assurity

They are also certified as a B Corporation by the nonprofit B Lab for meeting standards of social and environmental performance, accountability and transparency.

In 2017, Assurity Life Insurance Company paid $124.7 million in living benefits to policyholders and $69.3 million in death benefits.

Assurity Life offers Term Life, Whole Life, and Universal Life. They are one of the premier life insurance carriers for no exam life insurance policies. They also offer a "NonMed Term 350" policy that allows anyone ages 18-65 to get a policy up to $350,000 without taking a medical exam.

One drawback to policies through this company is the underwriting takes much longer, but they are more lenient. So while they aren't the quickest, you are probably more likely to be approved.

Americo

This company was built on the acquisition of several insurance companies, including Great Southern Life, Annuity Insurance Company, and Ohio State Life.

With $32.7 billion of life insurance in force and $6 billion in total assets, they are one of the larger life insurance companies in existence.

Americo offers Term Life, Whole Life, Universal Life, and Indexed Universal Life products. The underwriting process includes a short questionnaire and most require no medical exam.

One interesting offering is an additional accidental death benefit. This means your beneficiary would receive an extra 25% of the face value of the policy if you were to die as a result of an accident.

Bottom Line

You may have many reasons for wanting to skip a medical exam when applying for life insurance. The important thing is to get coverage that will financially protect your family and loved ones when you pass away.

A no exam policy may be faster and easier to obtain, but it may not offer the coverage or coverage amount that you need. Finding the right policy and coverage for you can take time, whether you take an exam or not.

Keep in mind that there are both pros and cons to no exam insurance policies. You may find it helpful to talk to a life insurance agent before making a final decision.