Top No-Exam Life Insurance Options in August 2023
Top No-Exam Life Insurance Options in August 2023
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Top No-Exam Life Insurance Options in August 2023

If you’ve been on the hunt for life insurance, you might have experienced a feeling of being stuck in a time loop. Online quotes may not always be readily accessible, and the conventional process involves extensive applications, medical examinations, and lengthy approval delays.

Fortunately, several companies have introduced no-exam life insurance policies that offer competitive pricing compared to traditional options.

To assist you in finding the most exceptional no-exam life insurance, we have evaluated policies based on their price and coverage benefits.

Best No-Exam Life Insurance 2023

Understanding No-Exam Life Insurance

No-exam life insurance is precisely what it sounds like: life insurance that eliminates the need for a medical examination.

Typically, traditional life insurance policies require a comprehensive medical exam, consisting of health-related questions and measurements taken by a paramedical professional, including blood pressure, weight, and height. In addition, blood and urine samples may be requested for further testing. Depending on your age and health, additional examinations like an electrocardiogram (EKG) might be required.

No-exam life insurance, as mentioned in our previous evaluations, is most suitable for individuals in excellent health and generally younger (typically under 50s) seeking life insurance. If your health or age disqualifies you from a no-exam policy, it doesn’t necessarily mean that the company will reject your application. Instead, they might offer a more traditional underwriting process involving a medical exam.

Therefore, if you choose to apply for no-exam life insurance, be prepared for the possibility that the company may require more details and an examination.

Types of No-Exam Life Insurance

No-Exam Term Life Insurance:

Some term life insurance policies fall under the no-exam category. Term life insurance offers coverage for a specific term with consistent rates. Term lengths typically range from 5 to 30 years. After the initial term, you may have the option to renew annually, but at a significantly higher rate.

No-Exam Whole Life Insurance:

Certain insurers provide whole life insurance without medical exams. Whole life insurance is a type of permanent coverage that accrues cash value at a fixed rate, featuring level premiums and a predetermined death benefit. Whole life insurance tends to be more expensive, and policies without medical exams are generally even pricier. Guaranteed issue life insurance falls under this category, where no medical exam is required, and applicants cannot be turned down.

No-Exam Universal Life Insurance:

Some providers offer no-exam options for universal life insurance. Universal life insurance is a type of permanent coverage with flexible premiums and death benefits.

No-Exam Group Life Insurance:

Group life insurance does not necessitate a medical exam. It involves an employer owning a life insurance policy that provides coverage to employees, usually at no cost to the employee for a basic coverage amount. However, if the policy is not portable, coverage is lost upon leaving the job.

Types of No-Exam Life Insurance Underwriting

Underwriting is the process by which an insurance company reviews applications and determines whether to approve them and at what rate. Different types of life insurance underwriting exist, some of which are expedited due to less applicant information or the utilization of electronic data from third-party sources.

Accelerated Underwriting Life Insurance:

Accelerated underwriting involves the collection of applicant information electronically, which is rapidly assessed by algorithms to determine the appropriate life insurance quote. This information may include prescription drug histories, motor vehicle records, criminal records, and risk scores generated by third-party services. Accelerated underwriting policies offer the convenience of no exam and can be competitively priced.

Simplified Issue Life Insurance:

Simplified issue life insurance streamlines the underwriting process by requesting limited health and lifestyle information without requiring a medical exam. However, your answers to the application questions could potentially disqualify you from purchasing a policy. Insurers may supplement your information with data from third-party sources. The cost of simplified issue policies is generally higher than fully underwritten policies due to the insurer having minimal information about you.

Guaranteed Issue Life Insurance:

Guaranteed issue life insurance provides coverage without a medical exam or any health-related questions. Applicants cannot be turned down for these policies. Guaranteed issue life insurance is primarily designed for individuals in poor health seeking minimal coverage, typically for funeral expenses or leaving a small inheritance. These policies usually have low maximum coverage amounts and a graded death benefit, meaning the full amount is not paid if the policyholder passes away within the first few years of ownership. Guaranteed issue policies are generally the most expensive way to purchase life insurance as the insurer has no health information about you.

How Much Is Life Insurance Without a Medical Exam?

We analyzed no-exam life insurance costs for males and females ages 30, 40 and 50 with excellent health.

Average No-Exam Life Insurance Rates by Age

20-year, $500,000 policy Cost per year
Male age 30 $275
Male age 40 $426
Male age 50 $1,032
Female age 30 $231
Female age 40 $280
Female age 50 $642
Source: Policygenius, Haven Life, Ladder, Forbes Advisor research

There are multiple factors that affect life insurance rates, including your age, gender, health and whether or not you smoke. Cost also depends on the type of underwriting used, such as accelerated underwriting or guaranteed issue.

Is No-Exam Life Insurance the Right Choice for You?

If you are in good health and a non-smoker, a no-exam life insurance policy can offer convenient, quick, hassle-free, and competitively priced coverage. It is especially beneficial for young individuals seeking prompt coverage without the complexities of a lengthy application process.

According to Fred Tavan, Chief Pricing Officer of Legal & General America, “Individuals most likely to be accepted for no-exam life insurance are those who have provided more accurate information upfront, are seeking death benefit amounts that are a couple of million dollars or less, and have few chronic medical conditions.”

Choosing the Best No-Exam Life Insurance for You

  1. Calculate Your Life Insurance Needs: Before obtaining life insurance quotes, calculate the amount of coverage you require. A no-exam policy may not provide sufficient coverage, particularly if you need to cover many working years or the responsibilities of raising a family.
  2. Assess Your Chances: While the appeal of obtaining life insurance without a lengthy application process is enticing, it is crucial to evaluate your chances of approval. Many no-exam policies require excellent or very good health for acceptance. A denial could have implications on future insurance applications.
  3. Consider More Than Cost: While cost is important, don’t focus solely on it. Explore coverage options that provide long-term value, such as the ability to convert term life insurance to permanent life insurance. Additionally, check if there is an accelerated death benefit, allowing access to funds from your death benefit if you become terminally ill.
  4. Provide Accurate Information: Regardless of the type of life insurance you apply for, ensure that you provide thorough and truthful information on your application. Tavan advises, “Pay attention to each question carefully and be ready to respond with information around specific medical conditions you have. Giving more detailed information will help streamline the process as well as get a more accurate underwriting decision.” Misrepresentations can lead to application denials or claim rejections after your passing.
  5. Have a Plan for Rejection: If you are rejected for no-exam life insurance due to your health, don’t give up. Explore alternative options such as going through a traditional underwriting process with a medical exam or working with an experienced life insurance agent who can identify insurers that are more favorable toward your specific health conditions.

Alternatives to No-Exam Life Insurance

Fully Underwritten Life Insurance: While it takes longer to approve, fully underwritten life insurance can be the most cost-effective option, even if you have certain health issues. It involves a medical exam, detailed health questionnaire, and information about your family history, travel plans, etc.

Methodology

Companies were scored based on the following factors:

  • Price (50% of score): Averaged rates for males and females in excellent health at ages 30, 40, and 50, for coverage amounts of $500,000 and $1 million, with a term length of 20 years.
  • Maximum face amount for lowest eligible age (10% of score): Companies offering higher no-exam coverage amounts for the lowest age received more points.
  • Age eligibility for best length/amount (10% of score): Extra points were awarded to companies offering no-exam life insurance to individuals over the age of 50.
  • Accelerated death benefit availability (10% of score): Companies providing this feature, allowing access to part of the death benefit in the event of a terminal illness, received more points.
  • Option to convert to permanent life insurance (10% of score): Companies offering the option to convert to permanent life insurance received higher scores.
  • Guaranteed renewals (5% of score): Points were given to companies offering the option to extend coverage beyond the initial term period.
  • Median time from application to approval (5% of score): Companies with shorter approval times for no-exam life insurance received more points.
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