For many people, finding a no exam life insurance policy can be a lifesaver.
Like with traditional life insurance, these policies allow you to get term life coverage to financially protect your family in the event of your early death — but you get to do it without having to undergo a medical test.
In this article, we’ll explain how no exam life insurance policies work, where you can shop for them and what you need to know before you apply for a policy.
No Exam Life Insurance: Skip the Tests, Get the Term Life
Of all the kinds of life insurance available, money expert Clark Howard recommends term life insurance.
With term life insurance, you buy a policy for a set number of years and pay the same amount each month. It only pays out a death benefit if you die while the policy is in force.
However, buying term life usually means passing medical underwriting — and that involves a medical exam.
Unfortunately, having to pass a medical test can be a roadblock for some people to getting this important coverage.
Maybe they feel they can’t pass medical underwriting. Or, maybe they just don’t like to be poked and prodded with needles as part of the exam process. Either way, they never sign up for life insurance!
That’s where no medical exam life insurance comes in.
“Many people won’t do the nurse thing, and they just won’t buy the policy. But I want people to get insured,” Clark says. “The prior era of no exam medical policies were junk because they were really expensive. But today, they’re in the same range as the traditional policies. And they’re so easy to apply for.”
There are a lot of insurers you could shop for no exam life insurance policies. Here are the three companies we’re going to be looking at today:
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Understanding No Exam Life Insurance
Before we get started, let’s make sure you understand some basics about no exam life insurance.
When it comes to no exam life insurance, you simply answer a series of questions about yourself and your general state of health to qualify.
Then, if you fall within insurance company parameters, the insurer will write you a term life policy on the spot without any further examination.
That’s different than the normal underwriting process where you have to undergo a medical exam. That exam typically includes tests to determine your blood pressure and cholesterol levels, plus a physical.
But with no exam life insurance, you can easily go online and get a policy in place in as little as 10 minutes without having to schedule a visit with the nurse.
Of course, not everyone will qualify for a no exam life insurance policy. But if you do, it’s that easy.
What You Need to Know About Simplified Issues Policies
However, there is a trade-off for these so-called “simplified issue policies.” They will usually be a little bit more expensive than their medically underwritten counterparts.
In our research for this article, we got five quotes for a 44-year-old male in excellent health, non-smoker, living in Georgia. What we found is our quotes came in about $7 higher per month on average for the no exam life insurance vs. the same policy using traditional underwriting standards that involved a medical exam.
So if you’re looking for a life insurance policy with no medical exam, we’ve got a shortlist of companies you might want to check out below.
For each one, we’ll take a look at the following info:
- How much coverage you can buy
- What ages the insurer will write a policy for
- What kind of financial strength the company has
Important note: When it comes to that final measure, A.M. Best is a credit rating agency to focuses on the insurance industry and gives insurers letter grades. A++ is their top rating and it indicates a company of the highest financial strength that’s likely to stand the test of time. A+ is just one step below that grade.
- Maximum coverage: Up to $1 million
- Issue age: 18-59
- A.M. Best rating: A++
Haven Life is an insurance company that will let select qualified applicants (up to age 59) finalize coverage online without the need for a medical exam. Certain candidates, however, may still need to pass medical underwriting when going with Haven Life.
On its website, Haven Life says a 35-year-old male in excellent health will typically pay $21 a month for a $500,000/20-year term policy.
Haven Life recently upped its maximum coverage offering from $1 million to $2 million for medically underwritten policies. But if you go the no medical exam route, the benefits remain capped at $1 million.
All policies are issued by Massachusetts Mutual Life Insurance Company, an A++ rated company for financial strength and stability.
Unlike the other insurers on this list, Haven actually shows you real rates online from anonymous policy-holders:
Haven Life No Medical Exam Insurance Sample Quotes
|Male, 23, excellent health, non-smoker||$250,000||15 years||$10.38|
|Female, 31, excellent health, smoker||$300,000||20 years||$44.25|
|Female, 37, average health, non-smoker||$200,000||20 years||$17.17|
|Male, 53, good health, non-smoker||$100,000||15 years||$38.17|
Source: Haven Life
- Maximum coverage: $50,000-$100,000, depending on age
- Issue age: 18-69
- A.M. Best rating: A+
“$1 buys $50,000 coverage”
That’s the bold claim made by Globe Life, another provider of term life insurance with no medical exam required.
Of course, that’s just promotional pricing for the first month of the policy. It resets at whatever rate you agree to for the life of the policy the following month.
Globe boasts on its website that adult rates can be as low as $3.49 a month. Maximum coverage offerings are broken down by age:
- If you’re under 55, you can get a $100,000 policy with no medical exam
- If you’re 55 or older, you can only get a $50,000 policy with no medical exam
With money expert Clark Howard recommending you buy 10 times your annual income in term life insurance, either one is likely to be far too little for almost anyone.
However, it might work for someone who just wants to have a small policy as a supplement to an existing group policy through their employer.
This insurer is an A+ rated business by A.M. Best.
- Maximum coverage: $300,000
- Issue age: 18-65
- A.M. Best rating: A+
Mutual of Omaha will write term life policies that can remain in force until age 80. No medical exam is required; you only have to answer a few health questions. Term life insurance benefit amounts start at $100,000 and go up to $300,000.
As part of the underwriting process, Mutual of Omaha will request your MIB (Medical Information Bureau) report and a pharmaceutical report. You can read more about these little-known health dossiers that are complied on you here.
Mutual of Ohama is an A+ rated business by A.M. Best.
- Maximum coverage: Up to $1 million
- Issue age: 20-54
- A.M. Best rating: A+
Like Haven Life, Bestow is one of the new breed of fintech companies that aim to take the pain out of getting no medical exam life insurance.
“They’re using algorithms that replace the nurse visit,” Clark says. “They believe they can properly and accurately reflect risk based on your prior medical and prescription history, by looking at anything they can find about you medically in your MIB report and elsewhere.”
All policies sold through Bestow are issued by insurance carrier North American Company for Life and Health Insurance, which is A+ rated by A.M. Best.
No exam life insurance policies are dependent on you being truthful in answering the survey questions — if you’re less than honest, you run the risk of your policy being voided.
In the final summation, simplified issue policies tend to work best for people who have medical issues.
If that doesn’t describe you, you’re probably going to find yourself paying a bit more than you have to for the convenience of a simplified issue policy.
After all, convenience is the name of the game when it comes to no exam life insurance.
“I love that someone can go on their phone, know they should buy a policy and get it done right then and there,” Clark says. “No exam life insurance takes what could be a six-week process of applying and turns it into a 10-minute one.”
Meanwhile, if you want step-by-step instructions on how to buy term life insurance, check out our new guide here that walks you through the process from start to finish.