Looking for a simpler life insurance application process? Consider life insurance with no medical exam as the answer. This type of insurance is gaining popularity as more people seek coverage without the hassle of lab work. With the increasing demand, there are now more options available, but it’s important to note that not all policies are equal, and some may come with higher costs.
To help you find the best fit, our team of insurance experts carefully analyzed 17 no-exam life insurance products. We took into account various factors such as policy features, age limits, coverage amounts, cost, and application approval time. This way, you can make an informed decision and choose the policy that suits your needs and budget.
Compare the best no-exam life insurance of 2023
| COMPANY | POLICY | MEDIAN APPROVAL TIME |
|---|---|---|
| Banner/Legal & General | Banner Life OPTerm | 8 days |
| Lincoln Financial | TermAccel | 5 days |
| Brighthouse | Simplified Issue Term | Same day |
| Transamerica | Trendsetter Super | 12 days |
| Ethos | Ethos Term Life | Instant |
| SBLI | Level Premium Term | 29 days |
What is no-exam life insurance?
No-exam life insurance offers a convenient alternative to the traditional underwriting process. Unlike the standard life insurance application, which includes a medical exam and health questionnaire, the no-exam option does not require you to undergo these procedures.
In a typical life insurance medical exam, a paramedical professional collects various health-related data, including blood pressure, blood work, and a urine specimen. By opting for no-exam life insurance, you can bypass this step, resulting in a faster application process. Some insurers even provide same-day or instant approval for eligible applicants.
Today, more insurance companies are extending the availability of no-exam life insurance policies to eligible applicants. Generally, to qualify, you should be relatively young (under 50) and in good health. This type of coverage is gaining popularity due to its simplicity and convenience.
However, it’s essential to keep in mind that not every applicant is eligible for no-exam life insurance, even if a company advertises such policies. After submitting your application, the insurer may still require additional information through an exam or more health-related questions. This is especially true for individuals over 50 or those considered high-risk candidates.
Different types of no-exam life insurance
Option 1: Accelerated Underwriting Life Insurance
One way an insurer can provide life insurance without a medical exam is through accelerated underwriting. This process involves gathering personal data from your application, including information from various sources such as digital health records, prescription drug history, credit reports, motor vehicle records, and public records. Using AI technology and predictive models, the underwriter assesses your risk and determines if you are eligible for no-exam life insurance and the corresponding premium.
Accelerated underwriting allows insurers to conduct a comprehensive risk analysis similar to traditional underwriting practices. Thus, eligible applicants may receive rates comparable to those obtained through traditional methods, which are often lower than those from simplified issue or guaranteed issue life insurance.
Option 2: Simplified Issue Life Insurance
Simplified issue life insurance is another alternative that doesn’t require a medical exam, but you’ll need to answer a health questionnaire. In the past, this type of coverage relied on limited third-party information, but nowadays, it involves pulling data from various sources, such as the Medical Information Bureau (MIB), motor vehicle records, prescription drug history, and sometimes credit reports.
While simplified issue underwriting is faster than accelerated underwriting, it might not capture all aspects of an applicant’s risk. As a result, individuals may face higher rates and lower coverage limits in exchange for the quicker application process.
Option 3: Guaranteed Issue Insurance
Guaranteed issue life insurance is the third option, and it doesn’t require medical exams or health questionnaires. Applying for this type of insurance ensures that you will be approved, regardless of your health or age, making it an attractive choice for those who might be ineligible for other coverage options.
However, because the insurer doesn’t conduct a proper risk assessment, guaranteed issue policies tend to be more expensive than other life insurance types and offer lower maximum coverage amounts. Additionally, these policies often have graded death benefits, meaning that if the policyholder passes away within the first two to three years, the beneficiary will receive a refund of the premiums paid, plus interest, instead of the full death benefit. There is an exception for accidental deaths, where the full death benefit is paid out.
How much does no-exam life insurance cost?
The cost of no-exam life insurance is influenced by several factors. These factors include your age, gender, and overall health. Additionally, the type of underwriting process you choose—accelerated, simplified, or guaranteed—also plays a significant role in determining the premium. The insurance company gathers relevant information during the underwriting process to assess the risk and calculate the appropriate coverage cost.
When considering no-exam life insurance, your age is a key determinant of the premium you’ll pay. Younger individuals generally receive more favorable rates than older applicants due to their lower risk profile. Similarly, gender is considered, as women tend to have longer life expectancies, affecting their insurance costs compared to men.
Example annual cost for no-exam coverage for a man, age 30
| COMPANY | $500,000 IN COVERAGE | $1,000,000 IN COVERAGE |
|---|---|---|
| Banner/Legal & General | $227 | $395 |
| Lincoln Financial | $227 | $360 |
| Brighthouse | $240 | $390 |
| Ethos | $240 | $432 |
| SBLI | $240 | $401 |
| Transamerica | $230 | $360 |
Example annual cost for no-exam coverage for a woman, age 30
| COMPANY | $500,000 IN COVERAGE | $1,000,000 IN COVERAGE |
|---|---|---|
| Banner/Legal & General | $192 | $290 |
| Lincoln Financial | $192 | $290 |
| Brighthouse | $190 | $290 |
| Ethos | $192 | $300 |
| SBLI | $208 | $339 |
| Transamerica | $195 | $290 |
Example annual cost for no-exam coverage for a man, age 40
| COMPANY | $500,000 IN COVERAGE | $1,000,000 IN COVERAGE |
|---|---|---|
| Banner/Legal & General | $350 | $620 |
| Lincoln Financial | $340 | $577 |
| Brighthouse | $340 | $590 |
| Ethos | $420 | $732 |
| SBLI | $376 | $682 |
| Transamerica | $410 | $680 |
Example annual cost for no-exam coverage for a woman, age 40
| COMPANY | $500,000 IN COVERAGE | $1,000,000 IN COVERAGE |
|---|---|---|
| Banner/Legal & General | $285 | $511 |
| Lincoln Financial | $285 | $483 |
| Brighthouse | $285 | $490 |
| Ethos | $324 | $576 |
| SBLI | $296 | $511 |
| Transamerica | $320 | $570 |
Example annual cost for no-exam coverage for a man, age 50
| COMPANY | $500,000 IN COVERAGE | $1,000,000 IN COVERAGE |
|---|---|---|
| Banner/Legal & General | $830 | $1,556 |
| Lincoln Financial | $830 | $1,556 |
| Brighthouse | $885 | $1,710 |
| Ethos | $984 | $1,848 |
| SBLI | $1,000 | $1,869 |
| Transamerica | $855 | $1,580 |
Example annual cost for no-exam coverage for a woman, age 50
| COMPANY | $500,000 IN COVERAGE | $1,000,000 IN COVERAGE |
|---|---|---|
| Banner/Legal & General | $652 | $1,205 |
| Lincoln Financial | $652 | $1,133 |
| Brighthouse | $680 | $1,240 |
| Ethos | $792 | $1,488 |
| SBLI | $725 | $1,207 |
| Transamerica | $655 | $1,140 |
Pros and cons of no-exam life insurance policies
Considering a no-exam life insurance policy but not sure if it’s the right choice for you? Let’s weigh the pros and cons of this increasingly popular insurance product.
Pros
- Skip the Medical Exam: With no-exam life insurance, you can avoid the hassle of bloodwork and other lab tests typically required in traditional underwriting, making it convenient for those who dislike needles or have time constraints.
- Faster Approval Process: If you qualify for no-exam life insurance, you can secure coverage quickly, with some insurers even offering instant or same-day approval, ensuring you get the protection you need without delays.
- Competitive Pricing: Depending on your age, health, desired coverage, and the insurance company you choose, you may discover that no-exam life insurance policies with accelerated underwriting have comparable rates to those with traditional underwriting.
Cons
- Eligibility Based on Health: No-exam life insurance is ideally suited for younger, healthier applicants. If you have pre-existing health conditions or are older, you might either be ineligible for coverage or face higher premium rates.
- Limited Coverage Amounts: While some companies offer higher coverage options for no-exam life insurance, it’s not always the case, especially if you opt for guaranteed issue or simplified issue policies. If you need significant coverage, other insurance types may be more suitable.
- Age Restrictions: Most life insurance providers impose age caps for policy issuance, and these limits are generally lower for no-exam policies. Typically, no-exam coverage is best suited for individuals aged 50 or younger. However, some companies, such as SBLI, extend this option to older individuals as well.
Carefully evaluate these pros and cons to determine if a no-exam life insurance policy aligns with your needs and circumstances. It’s crucial to select the right policy that offers sufficient coverage and fits your individual situation.
How to shop for and compare no-exam life insurance policies
When looking for the best no-exam life insurance company and policy that suits your needs, you can follow these straightforward steps.
Firstly, determine the amount of coverage you require based on your specific reasons for purchasing life insurance. Whether it’s to support your loved ones financially after your passing or to cover essential bills like mortgage payments or college tuition, calculating your necessary coverage is essential.
After assessing your coverage needs, consider your health condition. Keep in mind that most no-exam life insurance policies require applicants to be in good health. If you have certain health issues or are a tobacco user, you may face difficulties in obtaining coverage or may need to pay higher premiums for some types of policies.
It’s crucial to be honest during the application process. Tempting as it may be to omit some health information, doing so could lead to significant issues for you and your beneficiaries later on. Insurers can deny coverage or cancel your policy if they discover any misrepresentation.
Obtaining multiple insurance quotes is a wise move to ensure you get the best rate and coverage for your needs. Just like with other types of insurance, comparing quotes can help you make an informed decision.
Aside from the cost, consider the various features and benefits offered by different policies. Look beyond the price tag and explore additional options like an accelerated death benefit or other relevant features that suit your circumstances.
Always have a backup plan. While no-exam life insurance may be your preference, it’s not always possible for everyone to get coverage. Factors such as age and health may lead to denial or additional requirements. In such cases, don’t lose hope; explore other options like policies with traditional underwriting or guaranteed issue policies that provide coverage regardless of health status.
