Does No Exam Life Insurance Provide Enough Coverage?

Buying life insurance isn’t like ordering groceries from Amazon. It’s a long and arduous process that can take weeks or even months. One of the reasons it takes so long is because of the medical exam that’s required as part of the application process. It can take time to schedule the appointment and then, once you’ve done the exam, underwriters need to examine every detail of your health so they can come up with an accurate quote.

What if there was an easier way? What if you could get life insurance within a few days or even immediately, faster than Amazon?

Well, the good news is, there is a way. 

No exam life insurance allows you to skip the medical exam altogether and go straight to the approval process. Approval ranges from a few days to immediately. It’s great for anyone who doesn’t have the patience to wait months for coverage and it’s also ideal for anyone who’s scared of needles.

The main downside of no exam life insurance is that it may cost more than traditional life insurance policies. How much more? You can get a free quote at Sproutt.com, but in general, the amount of your monthly premiums depends on several factors:

  • How much coverage you want
  • What type of policy you get
  • Age
  • Gender
  • Smoker/non-smoker
  • The state of your health (in some cases)

How High Can Coverage Go?

No exam life insurance offers coverage that ranges from a few thousand dollars all the way to $1 million. The amount of coverage depends on the factors enumerated above, and here we’re going to discuss how much coverage you can get through different types of no exam life insurance policies. 

Simplified Issue

Simplified issue no exam life insurance can be sold as a term of the whole policy. A term policy is purchased for a certain number of years and then expires when the term ends. Most people have the option of renewing their policies, but they will likely be at higher prices. That’s why it’s important to get a term policy that’s long enough for your needs. 

A whole policy has no expiration date. You purchase it and it’s yours for life. As long as you pay the monthly premiums and providing accurate information on your application, your beneficiaries will receive the death benefit.

Simplified issue no exam life insurance acts very similarly to its traditional counterparts. The main difference is in the underwriting process. Traditional policies are fully-underwritten, as mentioned above, which is why the approval process takes so long. 

Simplified issue policies are only partially underwritten. You answer a few health questions on the application, and artificial intelligence does the rest. 

Here’s how it works: In addition to the sparse details you provide, insurers use AI to gather other details about you. This includes previous life insurance applications, DMV records, pharmacy records, and credit reports. Insurance companies don’t just look at your health, they look at other things that might make you a big risk: whether you are a dangerous driver or if you’re taking medication with serious side effects. Checking your credit is how companies make sure you’ll be able to pay your premiums.

All of this information is gathered in seconds and then analyzed by AI algorithms to determine what level of risk you pose to the insurer. If your risk level is determined to be low or not very high, you can be approved immediately. 

Due to the fact that insurers end up knowing a lot about you despite the lack of a current medical exam, coverage from simplified issue policies can go as high as $1 million. 

Guaranteed Issue

Guaranteed issue no exam life insurance is the second type of no exam policy, and it’s fairly different from the former. Guaranteed issue, as you may guess from the name, grants approval to anyone who applies. No health questions are asked and no information is gathered from third-party sources. Fill out the application, apply, and get approved on the spot.

What’s the catch? The catch is that these policies are limited to a coverage amount of $50,000. Also, the premiums tend to be quite high. So high, in fact, that this type of no exam policy is considered a last resort by most people. It’s mainly purchased by those with serious health problems who can’t qualify for a different type of policy.

Is No Exam Life Insurance Right For You?

As you can see, there are different types of no exam life insurance, and each is targeted toward a different audience. You can get up to $1 million in coverage with a simplified issue policy and up to $50,000 with guaranteed issue. Your ultimate choice will depend on your specific situation, but having the knowledge at your fingertips is the first step in the right direction.