To decide whether or not you are eligible for coverage and the number of your premiums, life insurance companies often ask you to attend a medical exam. On the other side, if you have no-exam life insurance, you won't need to have a physical. Yet, the insurer may still ask you medical questions or seek access to specific health information, even if you purchase a no-exam life insurance policy.
Those with medical issues preventing them from qualifying for normal insurance may find that opting for coverage that does not need an exam is a more acceptable choice. It is also beneficial for those who would rather not go to the doctor or go through the time-consuming risk assessment process known as underwriting.
Traditional life insurance underwriting may take up to six weeks since the insurer must wait for your exam findings before evaluating them. They may sometimes require further testing, which only draws out the procedure even longer. On the other hand, providers that do not need you to take an exam could be able to give you clearance in as little as a day.
There are term and permanent life insurance plans accessible without exams. Term life insurance protects for a certain period, often 10 to 30 years, and is typically purchased for this purpose. Permanent life insurance coverage, on the other hand, such as whole and universal life insurance, does not expire as long as the premiums are paid on time. Also, permanent life insurance coverage comes with the extra advantage of a cash-value account.
Types of no medical exam life insurance
Below are the three primary forms of life insurance policies that do not call for the policyholder to undergo a physical examination.
Simplified issue life insurance
Simplified issue policies waive the medical exam in exchange for a health and lifestyle questionnaire. The following is information that insurers will be interested in receiving:
- Smoking habits and history
- Past and current health conditions
- Recent hospitalizations
- Biological family health conditions
- Drug usage
- High-risk hobbies
Most simplified issue plans have coverage limits of no more than one hundred thousand dollars. The applicant's responses to the questionnaire, as well as their age, gender, and — in the case of term coverage — the preferred term length, all play a role in determining the precise coverage amount and monthly payment.
Guaranteed issue life insurance
The medical tests and questionnaires are not required for guaranteed issue life insurance. As the name suggests, acceptance is almost certain, provided that you satisfy the insurer's age limits, typically between 50 and 80 (although some carriers exceed that restriction to 85).
Those not qualified for normal life insurance plans owing to old age or major health conditions may be able to purchase this life insurance coverage. Yet, some insurers could reject candidates who are terminally sick. Guaranteed issue plans have the lowest coverage limits of all the many alternatives for life insurance; most of them restrict the death benefit to somewhere about $25,000. This makes them the least expensive option.
Accelerated underwriting life insurance
Instead of traditional physical examinations and questionnaires, accelerated underwriting employs algorithms or artificial intelligence to evaluate your health risk.
Those in excellent health, have a stable income, and do not have a family history of major medical disorders have a high chance of being accepted for coverage of up to one million dollars in a couple of minutes if they use this method of applying for insurance.
A MIB Group report, which contains information you may have provided in previous applications for life, health, disability, or long-term care insurance, may be examined by insurers during this process. They may also look at your driving record, your history with prescription drugs, and your medical history.
Insurance companies could also look at your credit record to see if there is any indication of defaults or bankruptcies. These unfavorable characteristics are considered potential markers of poor physical and mental well-being.
How does no exam life insurance work?
Together with other aspects of your lifestyle and medical history, traditional life insurance companies evaluate your height, weight, and blood pressure. Blood and urine samples may also be required of you.
With no-exam life insurance, the insurers completely skip the medical examination; nevertheless, certain firms may still ask you for information via the following channels:
- A questionnaire: There is a possibility that you may be questioned on your present health, whether or not you smoke, and your family's medical history.
- Databases: The findings of your prior life insurance health tests and information regarding your medication history may be obtained by underwriters.
- Driving history: Insurers often investigate your speeding citations and accidents in which you were at fault. A history of reckless driving may result in higher rates.
- Your doctor: Your primary care physician may be asked by underwriters to provide a statement on your health.
