Types of no-exam life insurance
There are several types of no-exam life insurance, including:
No-Exam Term Life Insurance
This term life insurance offers temporary protection to protect a temporary need and doesn’t require a medical exam, which most term policies do. Face amounts can be limited with this type of policy.
No-Exam Whole Life Insurance
Provides permanent life insurance protection and doesn’t require you to undergo an exam, though you will probably need to answer questions on an application about your health history. Face amounts can also be limited with these policies.
No-Exam Group Life Insurance
Employers typically purchase this, and face amounts are limited to $50,000 or a multiple of your salary, like two or three times your annual earnings.
Types of no medical exam life insurance underwriting
Just as there are several types of no-exam policies, there are also various types of underwriting, including:
Accelerated Underwriting Life Insurance
With this type of policy, underwriting can take as little as 24-48 hours so that coverage can go into effect quickly. It can be beneficial right after marriage or the birth of a child.
Simplified Issue Life Insurance
It doesn’t require a medical exam, but you must answer questions related to your health history, which can result in your application being declined.
Guaranteed Issue Life Insurance
Neither undergoing a medical exam nor answering health-related questions is required. If you complete the necessary forms, the insurer guarantees they’ll issue you a policy. Rates are higher for these types of policies.
Alternatives to no-exam life insurance
Generally, no-exam policies cost more than those that require an exam. If you’re younger and healthier, you may want to purchase a policy that requires an exam and get lower rates.
If you’re looking for a quick decision, consider “instant life insurance.” Insurance companies use medical data and various algorithms to calculate their risk level if they insure you. Most companies will reserve the right to ask you to take an exam.
Do I qualify for no-exam life insurance?
Not everyone qualifies for no-exam life insurance. Though an insurer may offer this type of policy, most still require you to answer questions about your health history, which can lead to your application being declined. You will qualify for guaranteed issue life insurance without an exam.