Life Insurance With No Medical Exam: Is It Worth It?

Life insurance agents across the nation are seeing a sharp trend of families requesting no medical exam life insurance products. Even when their agents present them with lower cost, traditionally underwritten alternatives, a growing number of families are opting for “non-med” coverage.

It’s not surprising either. A life insurance medical exam is one of the biggest inconveniences of the process and for many families, it’s a deal breaker.

An increasing number of life insurance agents (including myself) are firm believers that life insurance products with no medical exam help families that otherwise wouldn’t have purchased life insurance.

No medical exam life insurance policies take away the excuse of: “I don’t have time.” or “I don’t want to take an exam.”

Life insurance companies are seeing the trend as well. Every year, there are more life insurance products with no medical exam entering the market. The market is becoming more competitive (finally), which is driving down premiums.

The Biggest Downside

The biggest drawback to this type of life insurance that doesn’t require an exam is it’s more expensive. Those who buy life insurance without the exam will be paying more than a traditional life insurance policy, in most cases. The life insurance company is taking on a bigger risk by not fully evaluating your health and makes up for that extra risk by charging more.

The Biggest Misconception

Since there is no medical exam, anyone can qualify, right? WRONG

The truth is: You have to be in decent health to qualify for these no-exam policies. First you have to answer a series of health questions. If you pass those, most no medical exam life insurance companies check your MIB (Medical Information Bureau), pharmacy and motor vehicle report.

Only if all of those come back within that life insurance company’s underwriting guidelines will you be approved.

High risks are declined for immediate coverage, but can qualify for “graded death benefit,” which are no-medical-exam policies that have a waiting period before full benefits kick in. These hig- risk life insurance policies are the most expensive life insurance policies on the market, but are an option.

When It Makes Sense

So, who should consider a no-medical-exam policy?

1. Those who haven’t seen their physician in two to five years.

At this point, you don’t know if your lab work (based on the blood sample they take) will be normal or not. Life insurance agents see a lot of people who say they’re the picture of good health who haven’t needed to see their physician within the last few years and when the lab results come, they’re shocked at their elevated cholesterol, blood pressure, triglycerides or whatever it is. This can increase your life insurance or even lead to a decline.

Securing a no-medical-exam life insurance no-medical-exam life insurance policy before applying for traditional coverage gives you the peace of mind that no matter what happens with your life insurance medical exam, your family will be covered.

If your traditional fully underwritten policy comes back without any hiccups on the medical exam, simply cancel your no medical exam life insurance policy.

2. If you need the life insurance coverage fast.

Average life insurance underwriting can take four to eight weeks. If you can’t wait that long, consider a no medical exam life insurance policy. If you qualify, you can have coverage in force within days instead of weeks.

We see a lot of people who buy coverage before they go on a trip or need coverage quickly to secure a loan. Others just want to get this off their mind immediately and use it as a placeholder until they make the time to qualify for a traditional (and less expensive) policy.

3. You don’t like getting poked and prodded.

No one really enjoys getting poked with a needle, but for some it’s a deal-breaker. Life insurance with no medical exam is your product. The medical exam is no longer an excuse to protect your family.

Bottom Line

Life insurance without an exam isn’t for everyone, but it certainly has its place. Without a doubt in my mind, I know that more people are protecting their loved ones because of the simplicity of securing a life insurance policy.

If you’re considering a no-medical-exam life insurance policy, contact your life insurance agent and explore your options. Get this life insurance purchase off the backburner and protect your family today.

  1. Interestingly, the companies who sell Long Term Care insurance are becoming stricter on medical exams. For most of my career, no physical exam was required for Long Term Care. Now, not only are parameds required, the companies are requesting cognitive testing as early as Age 60 and reducing to the Age of 75 the final year when you can apply for “stand alone” policies.

  2. No medical exam term life insurance might sound like a great thing. You have serious health problems, you think maybe you can skirt being denied coverage by going the no-exam route. Not so fast.

    Like Jeff says, there is a medical questionnaire you must answer truthfully. And… if you can pass it, then you can pass standard life insurance exam,.

    Do yourself a favor, standard term life insurance is inexpensive; the medical exam is quick and easy, done at your convenience in your home or office.

    And if you have health problems, you might be surprised to find that many treated conditions won’t cause denial of coverage, or even raise your rates that much. Life insurance companies are competing for you customers. They understand that if you are unlikely to die prematurely from your condition then you are a good bet for their business.

  3. If the insured is healthy then go for the best rate. Some agents don’t want to have their applications reject so they just recommend no exam policy for their clients.

  4. Im trying to get life insurance on my brother. He has had some medical problems. He has had a stroke and a heart attack in the past. My brother is young . We would like to know can you help us with life insurance? Or can you direct us to someone who can?

  5. I always advise people to first get their blood labs done privately, then they will know beforehand what’s going on…kind of like checking your credit before applying for a loan.

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