If you've been comparing life insurance quotes and coverage, you may have discovered that most insurers require an application and a medical exam in order to offer you a policy. This process, referred to as full underwriting, is where the insurance company assesses your eligibility for coverage and determines the appropriate premium based on many factors such as your overall health, family health history, occupation, and age.
You may have also come across life insurance companies that are willing to offer you a policy, but with no medical exam requirement. While no medical exam life insurance may sound appealing, they're not always a good fit for everyone.
However, you might consider no medical exam life insurance if:
- You prefer convenience. Most insurers who offer no exam life insurance will allow you to apply for coverage from the comfort of your computer. Typically the application includes a limited number of health questions, so you can complete the process rather quickly. And because you don't have to schedule a medical exam, you can save yourself even more time.
- You don't need a lot of life insurance. Every insurer is different, but typically, no medical exam life insurance offers lower death benefits. So when you're comparing quotes, be sure the benefit limit the life company is offing you is going to meet your individual needs.
- You can afford to pay a higher premium. If you are financially stable, you may be able to forgo the full underwriting process (lengthier application and medical exam). Because the insurer has very little information in which to base their decision, most no medical exam life insurance policies generally charge a higher premium.
- You have phobias. For some people, the fear of needles and a blood test can be big deterrents to getting a life insurance policy. If you simply are unable to undergo a medical exam, then a no medical exam life insurance policy may be a preferable option.