What Is the Best Life Insurance Without a Medical Exam?

If you’re looking for a life insurance policy but have some health issues or need coverage fast, there is an option – no-medical-exam life insurance! This refers to life insurance that offers coverage without physicals, urine, or blood tests. 

Some people don’t get a life policy because of medical issues or poor health in general. Or, if they do, their monthly costs are way more expensive.

The main idea of no-medical-exam life insurance is to allow people that need coverage but have a pre-existing health condition to have a life insurance policy. Still, there is more than one available option, and in this article, you will find out all you need to know about them!

Therefore, today we will cover:

Keep reading this article to find out!

Does Every Life Insurance Policy Require Medical Exams?

Most life insurance policies require a medical exam. And it is not without reason.

This exam helps the insurance company precisely estimate risk and set the premium. Many people with severe medical conditions get rejected by the insurance company because they are too risky. It may be possible for that people to get a term or a permanent policy with no medical exam required or even without answering health questions, but it can cost significantly more.

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Due to many rejected people, there was a space for designing a life insurance policy that didn’t require a medical test. Application without medical exams is favorable for people in poor health and those in good health who don’t want to waste their time, who can’t stand needles and doctors, or who need coverage fast. So, many people think this is the perfect solution for them.

But, we must research every aspect of this policy critically to give a final verdict. The cost of skipping the exam isn’t always without drawbacks.

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What Does a Medical Exam Look Like?

Most companies that require a medical exam for application provide them for free. After setting up the details (like date and time), a licensed medical technician will come to you to run the test. You will get a copy of the test results for your record.

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The exam is not long, usually about 30 minutes, and involves:

  • Calculating your BMI (body mass index)
  • Checking your pulse and blood pressure
  • Collecting blood and urine samples.

For people over 50, an additional test, like an EKG, is possible. 

What Is No-Medical-Exam Life Insurance?

No-medical-exam life insurance is a type of life insurance policy that does not require a physical for underwriting approval. They are usually more expensive and might have limitations in coverage options because the insurance company is taking on a more significant risk by insuring people without predicting their health, medical history, and life expectancy.

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We also have to mention that many insurances without a medical exam include a waiting period of up to three years. If the person dies in the waiting period, their beneficiaries don’t get the full death benefit. In addition, with some permanent policies, the death benefits do not pay out the full death benefit until the person has held the policy for two full years. So, even if it sounds great, even this type of life insurance has risks.

Types of No-Exam Life Insurance

People have several options for life insurance without a medical exam to choose from: simplified issue, guaranteed acceptance, group life insurance, term insurance, etc. As with life insurance companies, many details can vary from the carrier, so check with each provider if they offer it.

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Simplified Issue Life Insurance

Simplified issue life insurance is designed to quickly provide a specific amount of life insurance with minimal health questions but also have coverage limits. With this policy, people avoid the usual 4-8 week wait typical for the traditional underwriting process. Since a simplified issue policy doesn’t require a complete medical exam, people can have coverage in days instead of weeks or months.

The death benefit payout from simplified issue insurance is usually between $5,000 and $100,000. However, the premiums can be more expensive than other types of term life insurance policies or permanent insurance. It’s logical because the insurance company doesn’t know if there are any underlying health issues they can’t factor in. Therefore, the risk is higher, and you have to pay higher premiums.

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Some insurance carriers offer simplified issue life as either term life or a permanent life insurance policy. And depending on each carrier, some allow you to add riders to your policy to extend and improve coverage or death benefits.

  • Your term life policy has expired, and you need to retain life insurance while you decide what to do next.
  • You need collateral for a loan. But be careful; not all financial institutions will accept a policy as collateral.
  • You need life insurance but aren’t sure you’d be accepted for more traditional policy types.
  • You simply don’t want to undergo a medical examination.

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Group Life Insurance

Group life insurance is a type of term life insurance offered by the employer or other groups like a labor union or professional organization and doesn’t require a medical examination. It’s designed to cover an entire group of people with only one contract. 

Since it is a term policy, the basic death protection lasts for a limited period, usually up to 30 years. If the insured person dies within that term, their beneficiaries get the death benefit.

The most significant advantage people find with this policy is affordability. Group life insurance policies are cheap life insurance because the employer pays a portion of the premium. 

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The maximum amount employer can provide without a tax implication is $50,000. If they offer more, employees have to pay income taxes for the amount above the maximum.

Another crucial reason people choose group policy is that you don’t have to take a medical exam, and health status is not used to determine eligibility. Still, this policy has its drawbacks as well. There is no option for customization, and the death benefit is usually only one or two times the individual’s yearly salary.

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Guaranteed Issue Life Insurance

Guaranteed issue is a type of permanent life insurance designed for people with a medical condition. It’s also called guaranteed acceptance life insurance.

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The most significant difference between term and permanent coverage is the period when the policy is active. With a permanent policy, you are covered for your entire lifetime as long as you pay the premiums. 

If the insured person is older or has health issues, guaranteed issue insurance can provide a guaranteed way for their family to cover final expenses like medical bills, funeral expenses, or others. A guaranteed issue life insurance has more benefits than other no medical exam life insurance policies, but keep in mind that it usually has a waiting period of two to three years.

If the person dies during the waiting period, their beneficiaries won’t get the full death benefit. Guaranteed-issue life insurance is a safe option for people with health concerns because they cannot be turned down due to their medical history. 

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Instant Life Insurance

Instant life insurance refers to coverage that doesn’t require a medical exam and is quick and contactless to apply. An insurer funnels data about the applicant into algorithms to calculate their risk of dying early. This process has enough information for life insurance companies to decide quickly and offer competitively priced coverage on the spot. The instant life policy lasts from 10 to 30 years.

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The application process is entirely online, so the instant life policy was trendy during the COVID-19 pandemic. And therefore, the whole process is straightforward and reasonably seamless.

There are only three steps:

  1. People fill out a life insurance application online and leave their personal and contact details, as well as some basic health questions about their lifestyle and health.
  2. People give permissions, so the company retrieves information about them from various databases. For instance, they can find out what medications an applicant has taken by searching prescription databases. They also can look at motor vehicle records to see if the applicant has any driving violations.
  3. People get a decision within minutes of applying.

And here are possible outcomes:

Approved

Your application was considered not risky for the company to insure. Once you pay your first premium, your life insurance coverage will go into effect – usually on the same day.

Denied

Coverage isn’t guaranteed, and they can reject you. Reasons for denial are the same as traditional life insurance policies – poor health, lifestyle, or age. However, you can still apply for a traditional or guaranteed issue policy if denied.

Referred to Underwriter

Sometimes companies need more information before making a decision. The insurer can send your case to an underwriter to evaluate your risk rather than relying on algorithms.

How To Get No-Exam Life Insurance?

Depending on what policy you would like, there are many ways you can buy your policy that don’t require a health exam. If you’re a team member and think the group insurance will work for you, you have to ask HR (or other authorities) in your company about the possibility and details of getting a group policy.

For other life insurance products, you can research different companies and ask them whether they offer an online or phone application if you would prefer it that way. Most insurance companies step up their game and offer a less traditional application process.

You can also ask your closest people for a recommendation and their experience. Whatever you decide, please make sure that you did your research well enough, weigh all advantages and disadvantages and thoroughly understand the contract before signing up.

How Much No-Medical-Exam Insurance Costs?

Firstly, any no-exam coverage is typically more expensive than the same level of protection and traditional life insurance coverage with a medical exam. For example, most guaranteed issue policies can be twice as much as a policy that requires a medical examination. The crucial reason for a higher price is that the insurer takes on a risk when they issue a policy without information about your health history, the current level of wellness, and the possibility of predicting your life.

Insurer companies pass the increased risk on to their policyholders through higher premiums. Even some policies that do not require an exam require that the applicant responds to a health questionnaire. And fundamental note here is to be honest with your answers even if you’re scared that your application will be denied.

Why? Because false answers can cause more problems than benefits like termination of the contract or non-payment of the death benefit.

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If you are sure that no-exam coverage is right for you, please give yourself some time to find the best insurer to get the policy. There are many differences between companies, from price to conditions, so you want to spend some time comparing them and make sure you find the most affordable and beneficial insurance coverage for you.

Term life insurance policies are usually among the cheapest forms of no medical exam insurance but don’t have a cash value component. They last up to 30 years and are typically available for people under 75. When choosing a policy from the term group, it is crucial to consider whether it has constant premiums. These policies usually have terms in their names like “level term” or “guaranteed level premiums.” This is important because no one wants their premiums to increase yearly and become impossible to pay. 

Because of these various reasons, it’s probably best to get a quote or talk to an agent for precise information. And, if you aren’t sure if the no-medical-exam life insurance is for you, keep reading this article!

Should You Buy No-Medical-Exam Insurance Policy?

No medical exam life insurance is more expensive than traditional coverage and usually provides fewer options, such as the ability to increase the death benefit or conversion of term policy into permanent insurance. On the other hand, a medical exam is free and typically lasts less than 30 minutes, and you can choose where it would be, like your home or work. 

A no exam policy should consider people who:

  • have pre-existing medical conditions that have been diagnosed in the past two years
  • have a significant pre-existing condition, like diabetes
  • had parents died at a young age (before age 60)
  • have DUIs or other issues on driving record in the past two years
  • have a history of drug or alcohol abuse in the past five years
  • have a high-risk job, like a firefighter, police officer, army, or others.
  • have high-risk hobbies like base jumping or outdoor rock-climbing

If any of these situations apply to you, the best thing to do is first look for an insurer that offers fully underwritten coverage, as companies have different restrictions. Independent insurance agents represent multiple companies and know each insurer’s underwriting requirements, so they can help you find the insurer that would accept your health profile.

We already mentioned that no medical exam insurance could be handy for people who need instant life insurance to secure a personal or business loan, a common requirement from institutional lenders. If this is your situation, you can get no-exam life insurance and apply for a fully underwritten policy. Because this way, you can be in a win-win situation – you can satisfy the bank or other lender’s immediate requirements and minimize the long-term costs.

In summary, no exam life insurance is a fantastic idea, but the realization isn’t as good as other life coverage. Our advice is to try with standard policies, and if they decline you or give you an awful life insurance plan, then go for no medical exam policies. In other words, let’s a no-exam policy will be the last option if nothing else works. Or, choose to have no exam options in addition to your regular life insurance. 

What Is the Best Life Insurance Policy?

It doesn’t matter if you want no exam life insurance or regular life insurance; the best option is whole life insurance, which will suit anyone’s life insurance needs.

No-Medical-Exam Whole Life Insurance

No medical exam whole life insurance is usually used as final expense insurance, as lifelong coverage and death benefits are often limited to a maximum of $25,000 or $50,000. This means beneficiaries may receive a large enough payout to cover the funeral, other end-of-life costs, and potentially a small loan. There is also an option to include an accelerated death benefit rider at no extra cash to even more improve your policy.

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Still, it’s not a large enough death benefit to cover a mortgage or provide income replacement for an extended period. This will be more affordable than a guaranteed acceptance policy for people who want final expense insurance and are unable to apply for traditional coverage.

What Is Whole Life Insurance?

Whole life is a kind of permanent life insurance that helps you protect your family and loved ones in the future and your finances now. Whole life policies offer two primary benefits: a guaranteed death benefit paid to your beneficiaries when you pass away and as long as you pay the premiums, and a cash value that can be withdrawn or borrowed from during your life.

Unlike term life policies, you are getting an opportunity to use your personal banking system that will support you to become wealthy. Another difference is the high coverage that whole life offer.

Advantages

Whole life insurance has benefits to offer people of all ages, gender, and circumstances. Here are some of them:

  • Whole life insurance never expires. Unlike term life insurance, a whole life policy lasts for an entire lifetime or as long as the premiums are paid. It is guaranteed to be paid death benefit regardless of when you die – tomorrow, in five years, or 80 years in the future. 
  • Premiums stay the same. The premiums you pay for your whole life insurance are guaranteed to remain fixed and consistent for as long as you have your policy. And premiums also contribute to your cash value and you have more high coverage amounts.
  • Whole life insurance builds cash value. It is a crucial living benefit and the second key difference from term life insurance. A portion of every premium payment is added to your policy, accumulating in the policy’s early years. After some time, that money becomes accessible to you at any time for any reason. Since it’s guaranteed never to go down, it can become an essential and stable part of every financial plan.
  • Whole life policies earn dividends. You will earn dividends if you buy life insurance from a mutual company. Dividends can be used to pay a portion or all of your premium; that way, you can accumulate cash value even more quickly. 

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How to Live Financially Stable Life?

One of the key reasons we firmly believe that whole life is the best option for life insurance is the possibility of establishing the Infinite Banking Concept. The Infinite Banking Concept is a process that supports individuals build wealth and create a better future. 

The main idea is strategically using a whole life policy as a personal never-ending banking system.You, as a policyholder, can borrow money against your policy and dictate cash flow. 

Simultaneously, you allow your policy to earn dividends. Thus, you build wealth by borrowing and repaying the money held in the cash value of a policy.

With the Infinite Banking Concept, you can break all connections with traditional banks. You will no longer have to pay their high fees and taxes. Instead, you will copy the system of banks and build your own bank. So, if you want to be financially independent and start building your wealth so you can leave it for your inheritance, the Infinite Banking Process is for you!

Final Thoughts

A number of companies offer life insurance policies without requiring a medical exam. Some people would prefer a no-medical-exam life insurance because they aren’t in good health, and there is no need for a life insurance medical exam or any proof of health and medical history. On the other hand, some people find it convenient to have a life insurance policy within seconds or minutes instead of the traditional process that takes up to a few weeks.

Whatever your reason, it’s great to have different options to choose from, but be sure you did good research before getting it. Even though no-exam life insurance has its advantages, it is overall less beneficial than traditional life insurance policies.

We don’t want to say that no-exam life insurance is a poor option, it’s simply not the best, and it would be more profitable if you could apply for whole life coverage. Let’s leave the no-exam life insurance be the last option for you.

Whole life is the best available life insurance policy because it provides financial protection while also allowing you to build cash value with Infinite Banking and help you become financially independent and wealthy.