How to Buy Life Insurance Without a Medical Exam

What Is No-Exam Life Insurance?

No-exam life insurance doesn't require an exam, bloodwork or other health screenings. You may need to fill out a health questionnaire, depending on the type of policy you're applying for, but others don't require it. Providers may also review additional information, such as prescription databases, motor vehicle records and more to help determine eligibility.

No-exam life insurance saves time, allowing you to get coverage quickly, if approved. But because insurers collect less information, they assume more risk. To offset this risk, you may pay more for coverage and have lower policy limits than with traditional life insurance.

When Can You Get No-Exam Life Insurance?

Anyone can apply for no-exam life insurance. The likelihood you'll qualify depends on the type of policy you apply for, your age and your health status. Some kinds of no-exam life insurance are best for young and healthy individuals who represent a low risk to the insurance company. Others are a good option for people who may have trouble qualifying for traditional life insurance due to preexisting health conditions.

Learn more: Reasons to Buy Life Insurance Now

Types of No-Exam Life Insurance

You can generally choose from four major types of no-exam life insurance.

Accelerated Underwriting Life Insurance

To get an accelerated underwriting life insurance policy, you must complete an application that includes questions about your health and lifestyle. The insurer also collects data from driving records, prescription databases, credit reports and public records. After gathering the necessary information, the insurance company uses an algorithm to determine your eligibility.

Because providers are less likely to approve you as you age, accelerated underwriting life insurance is typically best for younger, healthy, low-risk populations. Term, whole and universal accelerated underwriting life insurance options are available.

Simplified Issue Life Insurance

Simplified issue is similar to accelerated underwriting life insurance but requires less information. You may need to complete a short health questionnaire, and the insurer may review your prescription history. But providers typically use less data to determine eligibility for simplified issue life insurance policies.

Because companies gather less information, these policies usually cost more and have lower limits. It's an efficient way to get a policy, if you qualify, but it may not provide adequate coverage. Death benefits are usually limited to $500,000 or less. Simplified life insurance may be available in term, whole, universal and final expense options.

Learn more: Is Final Expense Insurance Worth It?

Guaranteed Issue Life Insurance

Guaranteed issue life insurance is best for people with preexisting health conditions that make it difficult to qualify for traditional life insurance. Like the name suggests, insurers won't deny you coverage based on your health status, job and many other factors. You typically only need to meet the insurer's age requirements to qualify.

However, these plans are generally more expensive and have low policy limits, usually around $25,000. This makes them suitable for helping to cover final expenses, medical bills or other debt you may leave behind, not replacing your income after your death. However, your beneficiaries can use the money for just about anything they want.

Guaranteed issue life insurance typically has a graded death benefit, which means if you die within a certain amount of time after purchasing coverage, usually two to three years, your beneficiaries won't receive the full death benefit. Instead, the insurer typically pays the policy's premium plus interest. Guaranteed issue life insurance is usually available as permanent, not term life insurance.

Group Life Insurance

Some employers offer group life insurance as a benefit to their employees. These policies are typically available at low or no cost and can help supplement other coverage you may already have. Policy limits are generally a multiple of your salary, tend to be on the lower side and may not provide adequate coverage alone.

Unlike traditional life insurance where the death benefit isn't subject to income taxes, group life insurance payouts above $50,000 are taxable if your employer pays or subsidizes the policy premium. Plus, you'll lose your coverage if you leave your job.

Learn more: What Are the Different Types of Life Insurance?

Pros and Cons of No-Exam Life Insurance

This type of coverage may be appropriate in certain situations. However, it's important to understand the benefits and drawbacks before purchasing a policy to decide whether no-medical-exam life insurance is worth it.

How to Buy No-Exam Life Insurance

You can apply for a policy in a few simple steps.

1. Decide how much life insurance you need. If you're looking for high coverage limits, traditional life insurance may be a better option.
2. Research insurers. Eligibility criteria, policy limits and premiums may vary between insurance companies. Compare options to find the plan that's right for you.
3. Complete an application. Depending on the type of no-exam insurance you're applying for, you may need to complete a medical questionnaire and answer some follow-up questions from the insurer.
4. Wait for a decision. Once the insurance company has the necessary information, it'll review your application and get back to you with a decision.
5. Pay your premium. If the insurer approves your application and you want to buy the policy, you must accept the coverage and make a payment. Once you do, your policy is in force, and the waiting period (if applicable) begins.

Tip: If your employer offers no-exam life insurance, you will likely be automatically enrolled and can skip these steps. Check with your employer for more details.

The Bottom Line

Although no-exam medical insurance may not be the best option for everyone, it can save time and provide quick access to coverage if you meet the insurer's requirements. But not everyone will qualify. If you need high policy limits or have health conditions your insurer may have questions about, traditional life insurance is probably a better option. If you can't qualify for traditional life insurance, a guaranteed issue policy can help offset the cost of final expenses.