What Is Non-Medical Life Insurance?

non-medical life insurance

Key Takeaways:

  • No medical exam life insurance is a type of policy that does not require a medical exam and can offer fast approvals.
  • Plans are typically expensive, but it can give certain groups of people quality coverage and peace of mind that they can’t find anywhere else.
  • Everyday Life Insurance offers a variety of plans that can meet your unique needs, including no medical exam life insurance plans. Our Needs Assessment tool takes the leg work out of finding your ideal policy.
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Life insurance has a few options. One choice when picking out a policy is deciding between life insurance that requires a medical exam and those that don’t. No medical exam life insurance is life insurance that doesn’t require full underwriting or a medical exam.

Why does this type of life insurance plans exist, and why is it a good option for some individuals? Find out how it works and if coverage without a medical exam is right for you.

What Is No Medical Exam Life Insurance?

No medical exam life insurance is coverage that doesn’t require you to take a medical exam when you apply. Different types of non-medical plans are available, and you may not have to provide documentation or answer questions about your health and medical history, either. 

No medical exam life insurance plans are highly convenient and offer coverage right away, while coverage options can take weeks for the processing and results associated with a traditional life insurance plan. However, because they are not fully underwritten, these plans are likely to be more expensive and offer limited coverage. 

Still, life insurance isn’t as expensive as most people assume, and these no-exam plans may not be as pricey as you’d expect.

What Is Life Insurance Underwriting ?

Like most insurance plans, life insurance is all about risk. Life insurance pays a death benefit if you pass away during the plan’s term. But the life insurance company does not have to pay that amount to your beneficiaries if your death is after the term ends — that is obviously an ideal financial situation for the insurer.

Before an insurance company sets your monthly premiums and issues you a life insurance policy, the company’s underwriting processes assesses the risk of insuring you. That is, underwriting is where the company determines how much to charge you based on how likely you are to pass away while your policy is still active. It’s slightly different for permanent life insurance. In that case, they assess your risk to determine your life expectancy.

If you are older, have health problems, a history of reckless driving, a dangerous job, or are otherwise considered high risk to insure, you’ll likely pay more for your plan (or they may decide to deny your application entirely).

The underwriting process is personal and can be time-consuming. You answer questions about your health, life, and medical history, allow the company access to medical records, and undergo a medical exam.

Types of No Medical Exam Life Insurance

“Non-medical” is a broad term that encompasses a few different types of coverage:

  • Accidental death coverage (also known as accidental death & dismemberment, or AD&D insurance) provides a death benefit if you die due to an unforeseen accident. It doesn’t cover every circumstance that you may consider “accidental,” so find out what is and isn’t covered before buying a policy. Premiums are extremely low-cost, approval is easy, and you often can get same-day coverage.
  • Mortgage life insurance only covers your remaining mortgage debt if you passed away before the balance was paid in full. With this coverage, the mortgage lender receives the death benefit directly from the insurer — not your family. Premiums tend to be more expensive, and the monthly cost typically remains the same even as your mortgage balance decreases. For these reasons, we don’t often recommend these types of policies.
  • Simplified issue life insurance is partially underwritten. Applicants don’t undergo a medical examination, but they do answer health questions that allow the insurer to perform a modified risk assessment. Premiums may be higher for simplified issue plans, and the maximum coverage you can get may be limited (depending on your specific circumstances).
  • Guaranteed issue life insurance is a type of plan that almost guarantees your coverage. There is no medical exam required, but the coverage amounts are extremely limited (less than $1,000 in some cases, and usually no more than $25,000). Premiums are generally very expensive, but these types of plans may be ideal for seniors to protect their families from the high costs of their funeral, burial, and other end-of-life medical expenses.

Who Should Consider No Medical Exam Life Insurance Coverage

For most people, underwriting is a minor inconvenience. For others, it can be scary. Having life insurance means your family is protected if and when something happens to you. Being denied coverage is a serious issue.

If you are already struggling financially under the weight of managing a chronic illness or other health issues, paying higher premiums to get life insurance coverage is a serious issue, as well.

Luckily, there is another option — applying for a no medical exam life insurance plan.

Non-medical life insurance is not only for those who would get less-than-excellent results from the medical exam, but also for young and healthy individuals who need coverage quickly for a trip or want to avoid the hassle.

Want to find out if non-medical life insurance is right for you and how much coverage you should have? Take our Needs Assessment Tool today to get a personalized plan recommendation within minutes. There’s no obligation and we won’t ask for any contact information or bother you with pushy salespeople.

When No Medical Exam Plans Aren’t Necessary

You should note that non-medical life insurance isn’t the best choice for every consumer, especially because more and more traditional term life and permanent life policies are doing away with the medical exam. About 90% of Everyday Life Insurance customers don’t end up needing an exam at all.

If you can get a traditional plan without having to undergo a medical exam, you may qualify for better premiums and more coverage options. That’s why it’s important to understand your options and contact an unbiased life insurance agent (like us!) who can explain which type of policy may be best for you.

How to Get the Right Life Insurance Coverage

Contacting a life insurance company or agent can give you a better idea if a traditional or no medical exam policy is right for you. Everyday Life Insurance offers these policies and others. Our policies are unique among non-medical plans, though — we use predictive intelligence technology to determine how much coverage you need based on your life circumstances and goals. Then, your coverage automatically adjusts over time so you never overpay for coverage.

Everyday Life Insurance only recommends plans that you are likely to be approved for. We’re here to help. Take our free Needs Assessment Tool or contact us online or over the phone to get answers to your life insurance questions.

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