No Medical Exam Life Insurance
Many small life insurance policies can be approved without a medical exam. "No exam" does not mean "no questions", so here is what insurers ask and check.
What “no medical exam” means
A traditional life insurance application can include a nurse visit, blood and urine samples and a wait of several weeks. No-exam policies skip that step. The insurance company decides from your application and from records it can check electronically.
There are two kinds, and the difference matters.
What insurers check instead of an exam
When you apply, you give the insurer permission to check certain records. These commonly include:
- Prescription history. The medications filled in your name over recent years.
- MIB records. A database insurers use to share coded information from earlier insurance applications.
- Identity and, in some cases, driving records.
Some applications are decided within minutes. Others take a few days if the insurer needs more information. A phone interview is sometimes part of the process.
Answer the health questions accurately
During the first two years of a policy, known as the contestability period, an insurer can review the application if a claim is made. If an answer was materially wrong, the insurer can reduce or deny the claim, even if the mistake was unintentional. Accurate answers protect your family.
If you are unsure how to answer a question, tell your agent. It is our job to match you with an insurer whose questions you can answer “no” to honestly, or with a policy type that does not ask.
Who no-exam coverage suits
- People who want a small policy for final expenses
- People who prefer not to have a medical exam
- People who want a decision sooner than a fully underwritten policy allows
If you are in good health and want a large amount of coverage, a fully underwritten policy with an exam may cost less per dollar of coverage. We will tell you when that is the case.
Questions about no-exam policies
What kind of health questions are asked?
They are usually yes or no questions about serious conditions and recent treatment, for example whether you have been diagnosed with or treated for certain illnesses in the last few years, or whether you need help with daily activities. Each insurer has its own list.
Can I be declined?
Yes, for a simplified issue policy. A decline from one insurer does not mean every insurer will decline, and guaranteed issue policies remain an option within their age limits.
Is no-exam insurance more expensive?
Usually it costs somewhat more than fully underwritten coverage for the same amount, because the insurer has less information. For small policies the difference is often modest.