The traditional life insurance application process includes a medical exam (also called a paramedical exam). To complete this exam, a trained technician meets with you (usually at your home), and you answer some questions about your medical history, give blood and urine samples, and have your height and weight measured.
Let’s be honest, no one loves a paramedical exam, but for the bulk of consumers getting one as part of your application process makes sense. If you are relatively healthy and looking for coverage over $1 million, you will usually get a more favorable rate after completing a paramedical exam than if you do not have one.
There are instances where skipping the paramedical exam and seeking other options makes sense:
- Very healthy individuals seeking $1 million or less in coverage should look into a type of no medical exam insurance called accelerated underwriting
- Very healthy individuals seeking more than $1 million but not more than $3 million will find that a handful of carriers are open to considering you for accelerated underwriting; this may be your best option if those particular carriers are receptive to your health profile (otherwise, you’re better off doing a paramedical exam)
- People with significant health complications that would not allow them to qualify for either accelerated underwriting or the traditional life insurance process can avoid a paramedical exam with “simplified issue” or “guaranteed issue” policies.
Different types of no medical exam life insurance
“No medical exam life insurance” is an umbrella term that can refer to very different types of life insurance coverage. We created this short guide to help you understand and weigh your options. See the chart below for more details about each type of no medical exam insurance.
|
Accelerated Underwriting |
Simplified Issue |
Guaranteed Issue |
|
|
Who it’s good for |
Healthy individuals with no significant medical diagnoses seeking up to $1 million in coverage and who meet a carrier’s requirements for their accelerated application process |
People whose health does not qualify them for traditional medical exam underwriting OR healthy people who require guaranteed coverage in a matter of days |
People whose health does not qualify them for any other type of coverage |
|
How it works |
Instead of a paramedical exam, you do a short phone interview and/or online questionnaire The insurance carrier can then approve or deny your application or request a medical exam to continue your application with them |
You complete a short questionnaire about your health |
You fill out a very basic application—no health questionnaire, no medical exam |
|
Are the premiums higher than traditional life insurance policies that require a medical exam? |
No |
Yes |
Yes |
|
Can I be declined? |
Yes, but it’s rare among people who seem qualified for accelerated underwriting |
Yes, but it’s very rare |
No |
|
What’s the maximum amount of coverage I can get? |
Usually up to $1 million, but some carriers will go up to $3 million |
Many carriers set their caps at $100,000 or $250,000 |
Many programs set their caps around $25,000 |
|
Is there a waiting period* for the death benefit? |
No. The full death benefit is effective the moment your policy is effective.† |
Sometimes. It varies by program and product type. |
Yes. Programs have waiting periods (usually 2-3 years), and if you die during the waiting period your beneficiaries get the premiums back with interest. |
|
What type of coverage can you get? |
Term or permanent |
Term or permanent |
Permanent |
*A waiting period for receiving the death benefit refers to how long you have to live after getting the policy before your loved ones would get the full death benefit.
†Assuming your application did not have any material inaccuracies or fraud, in which case the insurance carrier can dispute the validity of your policy.
Want to know more?
If you are in good health and interested in Accelerated Underwriting, get an instant online quote to see what programs are available to you.
If you are seeking simplified issue or guaranteed issue coverage, book a call to discuss your needs with an agent.
