Pros and Cons of No Exam Term Life Insurance 

Pros and Cons of No Exam Term Life Insurance

No exam term life insurance policies are becoming a popular choice for people who want quick, easy life insurance coverage. These policies are also more common for smokers and those with health conditions that might get them rejected from a traditional life insurance provider because they really are a 'no questions asked' kind of policy. This coverage can provide the exact same protection as a policy that requires a medical exam and history, but it does come with some limitations. Take the time to get to know your options for life insurance before you decide if a no exam policy is right for your needs.

The Benefits of No Exam Insurance

The biggest benefit of getting a no exam policy is speed. Some people find out they need life insurance very quickly, and in the past there wasn't really an answer to that. An exam was standard as part of life insurance approval for decades, and that can take a lot of extra time. From scheduling the appointment to finding time in your own schedule, a traditional policy could actually take up to a month or more to get approved. By offering life insurance policies with no medical exam, many insurance companies are able to approve policies the same day.

Here are some other perks of no exam life insurance:

  • You won't have to worry about whether your current medical conditions or state of health have changed in a way that could affect your premiums or overall approval. Some companies may still ask for a medical history in writing, some no exam companies don't even bother with that. Going to an exam could reveal new or worsening health conditions, or put just enough poor test results on paper to get an applicant rejected by a life insurance provider. With a no exam policy, that is no longer an issue.
  • Convenience is a big factor for many people considering these policies. Again, you won't have to deal with the hassle of scheduling appointments or spending a lot of time collecting paperwork and waiting on test results. You can get online, apply for a policy by filling out the requested information, and be insured without even leaving your home.
  • You can get the same coverage amounts and types as a traditional life insurance policies. All the same riders and coverage are offered to no exam policy holders, although they might come at a slightly higher price. Still, life insurance with no medical exam is very affordable. If you are worried that you might have to compromise your coverage for this type of policy, that is not the case. You can still get whatever coverage you want to protect your financial assets and your loved ones once you are gone.
  • Smokers and those with diabetes often find a lot of benefits to this type of policy because many providers leave out these related health questions. Traditionally, smoker status and diabetes-related health information was a must on all life insurance applications, including many no exam term life insurance policies. However, more and more companies are foregoing these questions in an effort to help more people get no exam life insurance for smokers and people with pre existing conditions.
Pros and Cons of No Exam Term Life Insurance

The Drawbacks of This Coverage

While no exam insurance is a great option for many people, it does come with a few disadvantages and limitations to consider. For starters, premiums are almost always higher than exam policies simply because your health status is not verified by a medical professional. This may not always be the case, but it is certainly more likely. If you are less worried about the cost of coverage than just getting covered, however, this may not be an issue.

Keep in mind that some insurance companies might also still try to track down information on their applicants, despite the lack of a required medical exam. Some companies utilize MVR (driving) records and pharmacy reports to get information on a person's health and potential risk level. They can also obtain information from the Medical Information Bureau, which shares information about previous life insurance applications, health concerns applicants might have, and any reported or potential dangerous activities. Just because you don't get an exam doesn't mean the insurer cannot find out about your medical history and state of health.

While increasing demand and popularity has created a more competitive pricing model for no exam life insurance, it often still has a high price tag attached. After all, an insurance company is basically putting themselves at a huge risk of loss by insuring anyone regardless of their state of health or risk level. Someone has to pay for that. Some companies handle this by limiting the maximum coverage amounts, while others simply utilize higher premium payments to make up the difference. Make sure you shop around to save the most on your policy.

The Bottom Line

No exam insurance policies definitely have their place in the market. They aren't for everyone, however. Make sure that you do your homework and compare your options to determine which life insurance is right for your needs. A term life insurance policy with no medical exam can be great for those who need quick insurance without a lot of waiting periods and processing time, as well as for those who have medical issues that put them at a higher risk with traditional insurance companies. As with any insurance policy, though, you have to know what you are getting into before you apply.

One way to make sure you are not overlooking anything and are making an informed decision about the life insurance you or a loved one needs is to find a life insurance agent online with us. We can connect you to expert agents and brokers who can guide you through shopping for the best coverage at the most competitive rates.

Disclaimer: TermLifeInsuranceUSA.com is not a licensed insurance agency or broker. The content of this website is for informational and comparative purposes only and is not intended to take the place of professional advice from a licensed insurance agent. TermLifeInsuranceUSA.com recommends that all consumers consult with a licensed insurance agent before purchasing any insurance policy.

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