No-Exam Life Insurance

Is No Exam Life Insurance for You?

If you want coverage fast, seek convenience, you’re relatively healthy, your coverage needs are under $500k, you have a phobia about medical exams and you don’t mind paying a higher price, no medical life insurance may be an option.

Remember, the lowest rate available for a specific amount of coverage for a specific age isn’t alway the lowest rate for you. If you have any health conditions or health history you may be a better fit for one company and not the other in terms of health class. The answers to your health questions can make a substantial difference in rating and therefore cost even without a medical exam.

When it comes to no exam life insurance the underwriting guidelines are a little bit more aggressive since the only thing the companies can go by is your medical records and answers to your application questions. If you have a substantial medical condition such as diabetes, heart issues, cancer or any other major illness that is being treated you will most likely get rejected. If you would like to be quoted for no medical life, please complete the quote form or give us a call and we’ll do a price comparison quote of all available non-medical life product carriers. 

The most common types of No-Medical/Simplified Life Insurance 

1) Simplified Issue Term Life Insurance— Death benefits in the 50k-400k range; can apply between ages 21-65. 10, 15, and 20 year term lengths. Health questionnaire required.  

2) Simplified Issue Universal Life (UL) —Death benefits in the 25k-250k range; can apply between ages 21-65. Cost and death benefit fixed for life. Health questionnaire required.

3) Level Death Benefit Whole Life —Similar to Simplified Issue Whole Life in that death benefit and cost is fixed for life. Differences are you can apply up through age 80, smaller death benefits in the 5-50k range, and easier to qualify. Many medical conditions may still be approved. Health Questionnaire required.

4) Graded Benefit Whole Life —This policy type provides lifetime coverage at a fixed rate, and will approve clients with more serious health history. However, the cost is higher, and the death benefit is reduced during the first two years, commonly paying 40% in year one, 75% in year two. Health issues which may be approved include history of heart disease, type I diabetes, stroke or substance abuse. Policies generally purchased in the 5k-25k range.

5) Guaranteed Issue whole life —no exam and no health questions asked. you can’t be turned down for health reasons. Usually purchased by people in poor health or advanced age, where they can’t qualify for any other lower cost coverage. Death benefits typically available in the $5000-$25,000 range.

Non-Medical/Simplified Issue explained:

With a Simplified Issue Life Insurance Policy, a few questions are required to be answered, dependent on those responses, you will be offered coverage if they meet the underwriting guidelines of the insurance company to which you are applying for coverage. This will determine approval, rating and cost of your premiums. No exam will be required, however, the insurance carriers do have the right to collect all medical history on you from doctors, MIB(medical information bureau), etc.

Typical Questions Asked When Applying for Simplified Issue Life Insurance:
Do you smoke?
Do you currently reside in a hospital or long-term-care institution?
Have you been declared terminally ill?
Do you have AIDS or HIV?
Have you been disabled or receiving disability benefits for more than 30 days in the last 12 months?
Have you in the past 24 months used narcotics, amphetamines or any controlled substance?
Have you received chemo or radiation therapy for cancer in the past 12 months?

Depending on the carrier, there can be a few additional questions.

By answering “Yes” to smoking, you may still be able to get a Simplified Issue Life Insurance Policy but it will be more expensive.
If you answered “Yes” to any one of the other questions you will most likely be declined coverage.

Pro’s/Con’s

No medical exam required
Full face value or “death benefit” is available immediately upon policy issuance unlike guaranteed graded policies.
It will be more expensive than traditional fully underwritten life coverage but less expensive than guaranteed issue life insurance