No test You can avoid taking the frequently dreaded medical exam during the life insurance application process if you have life insurance. What was the outcome? A quick and easy way to get life insurance that works best for young, healthy people.
To assist you in locating the best no-exam life insurance, we examined no-exam plans according to their costs and coverage advantages.
Best No-Exam Life Insurance 2023
- Brighthouse Financial
- Legal & General America (Banner Life)
- Pacific Life
- Transamerica
- Prudential
- Foresters Financial
- Haven Life
What Is No-Exam Life Insurance?
No-exam life insurance is precisely what it sounds like: life insurance without a medical examination.
Life insurance policies usually require a medical exam that consists of a series of questions about your health and medical history, after which a paramedical professional takes your height, weight, and blood pressure measurements. It’s likely that tests will require specimens of your blood and urine. You may need to undergo additional testing, such as an electrocardiogram (EKG), depending on your age and health.
Buyers of life insurance who are younger and in good health (usually in their 50s and under) are the ideal candidates for no-exam policies, like the ones we have rated above. Even if your age or health prevent you from participating in a no-exam policy, the company may still accept you. Alternatively, they may offer to conduct a more conventional underwriting procedure that includes a medical exam for life insurance.
Therefore, if you apply for no-exam life insurance, be ready for the possibility that the provider may eventually request additional information and a test.
Types of No-Exam Life Insurance
No-Exam Term Life Insurance
There are term life policies that don’t require exams. There is a level term period in term life insurance policies where rates remain constant. Term period length options typically span from five to thirty years. You can usually renew annually at a significantly higher rate after the level term expires.
No-Exam Whole Life Insurance
Whole life insurance without a medical exam is provided by certain insurers. One kind of permanent life insurance is whole life insurance. Policies have level premiums, a fixed death benefit, and a fixed rate at which cash value is built. One of the more costly forms of life insurance is whole life insurance, and policies without medical exams are typically even more expensive.
For instance, whole life insurance policies with guaranteed issue are non-medical exam policies that guarantee acceptance.
No-Exam Universal Life Insurance
There are occasions when universal life insurance is provided without an exam. A kind of permanent insurance with adjustable death benefits and premiums is universal life.
No-Exam Group Life Insurance
Insurance for group life does not require a medical exam. It is a contract in which an employer with a life insurance policy covers its workers for a basic coverage amount, usually at no cost to the employee. You will no longer be covered if you quit your job unless your policy is portable.
Types of No-Exam Life Insurance Underwriting
An insurance company’s underwriting procedure determines whether to approve an application and, if so, at what rate the buyer will pay after reviewing the application. Certain life insurance underwriting procedures are quicker than others because they require less applicant information or gather data electronically from outside sources.
Accelerated Underwriting Life Insurance
During the accelerated underwriting process, the life insurance provider electronically collects your personal data and uses algorithms to determine the appropriate life insurance quote in real time.
Prescription medication histories, auto records, criminal histories, and “risk scores” generated by outside services are some examples of the personal data that may be collected.
Policies with accelerated underwriting can be priced as competitively as those with exam requirements, while still providing the convenience of no exam.
Simplified Issue Life Insurance
A simplified method of underwriting is simplified issue life insurance. These applications usually don’t require medical exams, but they do ask a few questions about lifestyle and health. Your responses to the application questions may prevent you from purchasing an insurance policy. The life insurance provider may add data from outside sources to the information they already know about you. Because the insurer has less information about you than with a fully underwritten policy, simplified issue policies are typically more expensive.
Guaranteed Issue Life Insurance
Policies for guaranteed issue life insurance provide coverage without a medical exam or inquiries. It is impossible to refuse you. The primary target market for guaranteed issue life insurance is people in poor health who want a small amount of coverage, typically to pay for funeral costs or leave a modest inheritance for loved ones. These policies typically have low maximum coverage amounts and a graded death benefit, which means that if you die within the first few years of the policy’s ownership, the full benefit will not be paid out.
The most costly option to purchase life insurance is usually through guaranteed issue plans, since the insurer does not have access to your medical records.
In our review of the top no-exam life insurance, we did not include guaranteed issue life insurance.
Is No-Exam Life Insurance Right For You?
A no-exam life insurance policy may be a practical option if you are in good health and do not smoke and want prompt, hassle-free, yet reasonably priced coverage. Another good choice for young people who want immediate coverage without having to go through a lot of hoops in the application process is no-exam life insurance.
According to Legal & General America Chief Pricing Officer Fred Tavan, “Those who have provided more accurate information upfront, are seeking death benefit amounts that are a couple million dollars or less, and who have few chronic medical conditions are individuals most likely to be accepted for no-exam life insurance.”
How to Choose the Best No-Exam Life Insurance For You
Calculate How Much Life Insurance You Need
The entire amount of coverage you require from a no-exam life insurance policy might not be available, particularly if you want to cover several years of employment or the years spent raising a family.
Determine the amount of life insurance you require before requesting quotes. It’s possible that a no-exam policy by itself won’t offer enough coverage.
Assess Your Chances Before You Apply
While it may seem convenient to obtain life insurance without having to go through a drawn-out application process, you should be aware of your chances of being accepted before submitting a no-exam life insurance application. To be approved, many no-exam policies need to be in very good or excellent health. A denial affects future applications and is recorded in your insurance record.
If you’ve had any health concerns, don’t be shocked if you wind up going through a more conventional application process that includes a life insurance medical exam.
Look Beyond the Cost
Naturally, you want to avoid paying too much for life insurance, but make sure to look beyond price. Some coverage options, like the ability to convert term life insurance to permanent life insurance, can become very valuable long after you purchase the policy. Additionally, check to see if there is an accelerated death benefit, which allows you to access funds from your own death benefit in the event that you develop a terminal illness.
Be Truthful On the Application
Be accurate and thorough when filling out the application for any kind of life insurance.
“Pay close attention to every question, and be prepared to answer with details about any particular medical conditions you may have. Giving more specific details will facilitate the process and result in an underwriting decision that is more accurate, according to Legal & General America’s Tavan.
Intentional falsehoods may result in the rejection of your application or, worse, the denial of a claim after your death. Life insurance providers can check application data in a number of ways. They are able to validate data from other sources thanks to backend technologies.
Have a Plan in Case of a Rejection
Don’t give up looking for life insurance if the company denies you no-exam coverage due to your health. You probably have options if you need life insurance.
- Prepare yourself for a more conventional underwriting procedure that calls for a medical exam for life insurance.
- Collaborate with a seasoned life insurance representative who can recommend carriers who are more understanding of your unique medical circumstances.
- To avoid the possibility of receiving another rejection, a knowledgeable life insurance agent can anonymously shop around your application.
Alternatives to No-Exam Life Insurance
Fully Underwritten Life Insurance
The approval process for a “fully underwritten” life insurance policy is typically the longest because it frequently requires waiting for test results and records from medical providers. You must also fill out a long questionnaire regarding your medical history, your plans for travel outside of the United States, and other topics.
Even if you have certain health concerns, a fully underwritten life insurance policy may be the most affordable option for purchasing life insurance.
Methodology
Based on these metrics, we assigned a score to companies:
Cost (50% of score): For $500,000 and $1 million with a 20-year term, we averaged the no-exam life insurance rates for men and women in good health at ages 30, 40, and 50.
Companies with higher no-exam life insurance coverage amounts for the lowest age gained more points. Maximum face amount for lowest eligible age (10% of score). Keep in mind that if you apply later in life, your maximum no-exam coverage may occasionally decrease.
Age at which best length/amount (10% of score) is awarded: Businesses that give life insurance without an exam to people over 50 were given bonus points.
Benefit of accelerated death available (10% of score): This crucial function allows you to access a portion of your own death benefit in the event that you become terminally ill.
Option to convert to a permanent life insurance policy (10% of score): If you decide you want a longer policy, especially if your health has gotten worse and you don’t want to look for a new policy, this is a good option to have in place.
Renewals guaranteed (5% of score): This option allows you to continue your coverage after the initial level term period has ended, for example, after 10, 20, or 30 years. Although renewal premiums can be much higher, doing so can give someone who might no longer be eligible for a new life insurance policy—due to health—extended coverage.
The median time from application to approval (5% of score): Companies with shorter approval times for life insurance without an exam were awarded extra points.
The time it takes for approval to be granted could range from a few seconds to a month, depending on the business and perhaps even your health.