Here’s How No-Exam Life Insurance Might Benefit You

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It’s an option you may want to consider. 

If there are people in your life who rely on you financially, or who might get hurt financially in the event of your passing, then it’s a good idea to put a life insurance policy in place. That way, your loved ones will get financial protection — and you’ll get peace of mind.

It’s common for life insurance companies to require applicants to get a medical exam before offering up coverage. The reason? If you have health issues, you’re a greater risk to a life insurance company, so that’s something they want to verify before writing policies.

But maybe you don’t want to go through the process of getting a medical exam for life insurance purposes, either because you’re busy or because you feel it’s an invasion of privacy. Or maybe you know you have health issues and are worried that if you’re forced to undergo an exam, you’ll be denied life insurance coverage.

The good news is that some insurance companies offer what’s known as a no-exam life insurance policy. And you might benefit by going this route.

The upside of buying life insurance without a medical exam

The process of scheduling a medical exam, participating in one, and waiting on the results can be time-consuming. If you’re eager to put life insurance coverage in place immediately, then a no-exam life insurance policy may be better for you, as these can often be finalized pretty quickly.

Also, if you know you have health issues that make you a high-risk applicant, such as being a smoker, having heart disease, or being diabetic, then a no-exam life insurance policy could be a better bet for you. These factors might make it harder to qualify for a traditional life insurance policy. And even if you do qualify, these factors could easily lead to higher premium costs.

The downside of buying life insurance without a medical exam

While no-exam life insurance has its advantages, one drawback you should know about is that your coverage may be limited. If you want to secure a larger amount of coverage, you may need to undergo a medical exam and choose a different type of policy.

Also, with a no-exam life insurance policy, your insurer is taking a risk. So in exchange, you might face higher premiums.

U.S. News & World Report says you can expect to pay $83 a month for a $1 million, 20-year term life insurance policy if you’re a 40-year-old female non-smoker, or $103 a month as a 40-year-old male non-smoker. These numbers might fit nicely into your budget. But if you’re getting a no-exam life insurance policy, those numbers could be a lot higher.

Should you get a no-exam life insurance policy?

If you have pre-existing medical conditions that might make it harder to get life insurance, then a no-exam policy could be a good bet. But if you’re someone who’s fairly young and healthy, then you may be better off buying a policy that requires a medical exam. Doing so could result in a more generous life insurance benefit and cheaper premiums.

Our picks for best life insurance companies

Life insurance is essential if you have people depending on you. We’ve combed through the options and developed a best-in-class list for life insurance coverage. This guide will help you find the best life insurance companies and the right type of policy for your needs. Read our free review today.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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