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Life Insurance With No Exam

By James Tobin 

Critical   Takeaways

  • Avoids Needs, Convenient, policy issued Fast
  •  Pricing  competitive with Fully underwritten  cases
  • Policy coverage amounts limited 
  • Offered by many major carriers

"Getting life insurance with no medical exam", if you listen to the  radio or watch television,  you've seen or heard  the commercials. It is impossible to miss them.

So what is no medical exam life insurance, and why are they always advertising on my television?

While the basic premise of no exam life insurance is straight forward, this page is meant to provide guidance on the details that are often overlooked when consumers shop for life insurance.

What is No Exam Life Insurance?

​No medical exam life insurance is the fastest growing segment of the life insurance business. Just like fully underwritten term policies, most no exam term policies run for a period  or "term" of 10-30 years.

Depending on the policy provisions, at the end of the term, the policy will either expire or offer the option to be continued as an annual renewable term or ART.

For a look at an interesting snapshot of how Americans use and view life insurance see the  Life Insurance Market Research Association (LIMRA)  survey.

What are the Benefits of a Getting life insurance with No Medical Exam?

There are three significant benefits to using No Medical Exam policies.

Convenience- While the thought of giving blood and urine samples to a nurse upsets some much more than others, nobody looks forward to the experience.

For some it's the inconvenience of fasting prior to the exam​. for others, it's the time. And, for still others, it's the needles & blood.

Whatever the rationale, lots of people have no interest in submitting to a life insurance medical exam.

Fear of the Unknown- While No Medical Exam policies do not require blood and urine samples they are medically underwritten. The underwriting is done on the basis of medical records, prescription checks, driving records and the MIB or Medical Information Bureau.

So while your past  medical history is available to the insurer, any current information that would be obtained by a blood sample is not available. This may be important if you have not been to a doctor recently. 

It is all too common for life insurance applicants to discover a condition when they get ​lab results (and a bad rating) from the carrier after applying for life insurance.

This situation  can be avoided by getting  life insurance with no exam and and then following up with your doctor ​for an annual physical.

Speed of Issue- Because there is no requirement for a medical exam and lab results, underwriting is dramatically faster.

Rather than waiting 6-12 weeks to get a typical policy in force a No Exam policy is often in force in 2-12 days. 

Key Take Aways

  • No medical exam life insurance policies are underwritten using information from medical providers, pharmacy script checks, DMV, and the Medical Information Bureau. 
  • No Medical Exam policies are usually in force in 2-12 days. This is  weeks and often months faster than fully underwritten policies.

How is No Medical Exam Life Insurance Priced?

No exam term life insurance is priced along the same model as traditional term insurance. That model or formula is roughly stated as cost of insurance (COI) + administrative costs +  carrier profit = price.

The point where some life insurance with no exam policies depart is that the cost of insurance (COI) is determined by risk analysis. ​The risk analysis calculation is based on gender, age, health, lifestyle and any additional benefits offered such as conversion opportunities.

Because health grading is less precise with a no exam policy, many carriers will charge a premium to compensate for the additional risk being undertaken.

However, as the flow of information about all of us has become more easily accessible, some carriers are willing to offer no exam policies up to 500000 (500K) with no additional premium charged.   

Key Take Aways

  • No Exam Pricing Follows the same model as fully underwritten term insurance : cost of insurance (COI) + administrative costs + carrier profit = price.
  • Some carriers will offer upto $500000 policies with no premium adjustment for No Medical Exam life insurance.

  Is The Price of No Medical Exam  Life Insurance                 Guaranteed ?

Key Take Aways

  • Life insurance is priced to include the risk, administrative cost and profit of the insurance company.
  • Term policies  have a fixed price until the end of the term. 
  • Annual renewable policies can be very expensive to maintain.

  Life Insurance with No Medical Exam: What is The            Most   Affordable Term Length?  

  What is policy Stacking?

Key Take Aways

  • The most "affordable length  policy depends on your perspective.
  • Stacking of no exam policies can help meet insurance needs by combining the amounts of  multiple policies.
  • It may be worth paying slightly more for a policy with a strong conversion option. 

 What are the Considerations When Deciding on a No Medical  Exam Life Insurance Company?

The primary differentiators when choosing a no exam life insurance company are price, and  financial strength.    

Normally, we would also consider convenience as a significant factor. However, with no exam, the convenience issue is largely off the table.. So let's take a look Price and financial strength one at a time. 

Pricing - Is it as Simple as Using the Quote Tool?

With fully underwritten policies, if you are in excellent health and solely concerned with cost, it really can be that simple.

 However, with so called non-med or no-exam policies the pricing tool is of limited value. This is because the insurance landscape is changing daily.

With new no exam products popping up every week, the best course of action is to give us a call or drop a note using Contact Us

In short,  you have any health concerns or want to know about conversion options, so called "non-med policies or financial strength of the carrier,  you're better off speaking with an independent Agent.

Financial Strength Ratings​

While S&P and moody's rate several carriers, of the well known ratings agencies, A.M.Best is the most heavily relied on in the life insurance market.  

As a general rule, the Life Insurance Help Desk will offer carriers in the top four AM Best categories A++,A+,A, A- . These  categories are represent superior (A++, A+) and excellent (AA, A-) ability to meet ongoing obligations.

Simply put, they are well run and can pay their debts.

Their are occasions where the only option to get coverage is to use a lower rated (or unrated) carrier.

Typically, a Low/No rating carrier situations will come up with so called "final expense" policies. These are immediate issue, small face amount policies with no exams.

Life Insurance with No Medical Exam: Nest Steps

Thank you for choosing the Life Insurance Help Desk to research  life insurance with no medical exam. I hope this guide has left you with the conclusion that, done right, term life insurance with no medical exam can be a super deal.

I also hope that you came away with an appreciation that the details really do matter. From price and underwriting to  conversion options and convenience, knowing  what you want is half the battle. 

If you are interested in starting the life insurance process this link will guide you along the path. Should you have any questions about the material in the guide please leave a comment or contact us.

James Tobin, CFP

Jim Tobin is the owner of Life Insurance Help Desk, a Fairfield County, CT. life insurance agency. You can find him on LinkedIn and Facebook. Over the past 10 years, Jim has used his CFP-financial planning designation to help individuals with their life insurance needs. In addition to working with life insurance clients, Jim teaches ESL classes in his spare time. He resides with his beautiful wife Nicole and the 3 cats that rule their lives..