No exam life insurance is one of the latest trends in insurance policies, and many people jump at the chance because they are concerned about how a medical exam may affect their rates or ability to qualify for a policy. When it comes to selecting a policy that does not require any kind of physical exam one should ask the following questions to make it easier to choose the right policy for you.

  • Is this coverage dependable, and are the companies offering it reputable?
  • How does it affect the cost of life insurance?
  • Does no exam really mean your health doesn’t matter?
  • Who, if anyone, should consider this type of insurance policy?

Can you Depend on No Exam Life Insurance?

Some major insurance companies offer term life insurance policies without the need for a medical exam. If you know the company and know they are reputable, you are probably safe purchasing this type of policy from them. If you have never heard of the company it’s wise to do some research to find out how legitimate they are. Fortunately, the internet makes it easier than ever before to find out everything you need to know about a company.

The important thing to consider is not just whether the company has a good reputation overall, but look for their reputation for handling this type of policy and how claims are processed.

How Does No Exam Affect the Cost?

In most cases going through the exam and obtaining a standard policy costs less for a person who has no health concerns than a no exam life insurance policy. Because the company isn’t looking into your medical history they are taking a bigger risk on you. They don’t know if you might have a serious illness that could make it more likely they will have to pay out on the policy.

Choosing a no exam life insurance policy saves you some time and trouble, but may cost you more in the long run. You will not only see higher premiums, but the options for term length may be very different. If you want a longer term, better rates or a universal life insurance policy the medical exam may well be required.

Does No Exam Life Insurance Equal No Health Questions?

The answer to this depends on the company. Some policies will be issued with absolutely no information regarding your health while others may ask you to answer questions on your application, usually regarding major illnesses, general health and any history of health problems in your family. A true “no exam and no questions asked” policy is possible, but the major insurance companies will usually want to know at least a little but about your medical history. Answering these questions could mean a lower rate for you, and could also qualify you for a policy with a big name company. However, for someone with serious health problems, such a policy may be less expensive than one that requires a physical exam.

Will The No Exam Life Insurance Trend Take Over?

While there are more of these policies available than ever before, there is no evidence that the use of medical exams in issuing standard life insurance policies will be disappearing any time soon. Insurance companies need to spread out their risk in order to stay in business. They can take a chance on some of these no exam policies by charging higher premiums as well as by having a lot of policies in force that limit the risk.

It also makes good sense for those who are young and in good health to choose to take the exam because they will pay lower premiums and get much more favorable policy terms. Since so many people are looking to save on insurance it is unlikely they will choose the no exam policy over a better rate on a better policy.

Although there is a market for the no exam policy, it remains a niche product that is unlikely to take over. Over time, the less reputable companies will eventually be weeded out and it will be easier for those in search of this type of policy to get what they really need for coverage.

Author's Bio: 

Ken Adams is an insurance advisor and webmaster for