# No-Exam Term Life Insurance Premiums Explained
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-25
Category: INSURANCE
Category URL: https://financedigest.com/category/insurance
Meta Title: No-Exam Term Life Insurance: A Cheaper, More Accessible
Meta Description: Learn how to secure life insurance without lengthy medical exams. Discover the benefits and drawbacks of these policies. Get covered quickly and easily!
URL: https://financedigest.com/no-exam-term-life-insurance-premiums-explainedhtml

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According to LIMRA’s [2020 Insurance Barometer Study](https://www.limra.com/siteassets/newsroom/help-protect-our-families/consumer-insights/2021/january/exec-summ_2020-barometer-study---focus-on-life.pdf), the percentage of American adults with life insurance has been constantly declining since 2011. In 2020, only 54% of US citizens had coverage, leaving a “needs gap” of 16% – or over 40 million people who don’t have insurance but need it.

Among the top reasons for not investing in life insurance are the expected costs and lengthy medical exams involved. Luckily, today, there is one cheaper, more accessible option you could consider: no-exam term life insurance policies.

Let’s look at what these are and who may benefit from them.

## What is a No-Exam Term Life Insurance Policy?

A term life [insurance policy is necessary for most people to financially protect their families](https://www.financedigest.com/types-of-insurance-for-yourself-and-your-family.html "Types Of Insurance For Yourself And Your Family") in the event of their death. But when looking to [invest in a life insurance](https://www.financedigest.com/classic-car-insurance-broker-launches-future-classic-investment-guide.html "Classic car insurance broker launches Future Classic investment guide") policy, most buyers have to face one significant hurdle: a thorough medical exam.

These medical exams are essential for the [life insurance](https://www.financedigest.com/types-of-life-insurance.html "Types of Life Insurance") provider to assess the cost of your premium, your coverage eligibility, and the risk involved.

They commonly include tests like:

- Height and weight measurements
- BMI checks
- Pulse and blood pressure checks
- [Blood and urine tests](https://www.financedigest.com/feasibility-of-interoperability-to-drive-the-blood-testing-market.html "Feasibility of interoperability to drive the Blood Testing Market")
- Thorough reviews of the patient’s medical history
- Specific additional tests

For some, these tests are nothing more than an inconvenience. However, for those with strict timelines or severe medical conditions, they can make a difference between being granted or denied coverage.

That is where a no-exam term life insurance policy can help and is only offered by a handful of companies such as [Bowtie](https://www.bowtie.com.hk/zh/insurance/term-life) Medical Insurance. These policies are not medically underwritten and don’t require a medical exam.

However, during the application process, the [applicant will be required to answer questions about their medical history](https://www.financedigest.com/a-first-look-at-new-york-citys-new-law-prohibiting-employers-from-inquiring-about-the-salary-history-of-applicants.html "A First Look at New York City’s New Law Prohibiting Employers From Inquiring About the Salary History of Applicants") and existing medical conditions.

### Term Life Insurance: Exam-Based vs No-Exam Policies

While no-exam [life insurance is a viable option for those unable to access](https://www.financedigest.com/are-the-over-55s-accessing-their-pensions-early-failing-to-plan-for-later-life.html "Are the over-55s accessing their pensions early failing to plan for later life?") traditional policies, they are slightly different from medically underwritten policies.

No-exam policies are undoubtedly faster and easier to access, even for those with a pre-existing medical condition that makes traditional policies off-limits. And, they come with [significant benefits:](https://www.financedigest.com/thomson-reuters-report-reveals-risk-compliance-staff-expect-to-see-significant-benefits-from-artificial-intelligence-ai-and-distributed-ledger-technologies.html "Thomson Reuters Report Reveals Risk & Compliance Staff Expect to See Significant Benefits from Artificial Intelligence (AI) and Distributed Ledger Technologies")

- Applications can be submitted online
- Approval can [come through within a few days](https://www.financedigest.com/have-multi-asset-funds-had-their-day-or-is-their-best-yet-to-come-new-whitepaper-from-camradata-explores.html "Have multi-asset funds had their day or is their best yet to come? New whitepaper from CAMRADATA explores") – or as little as 24 hours!
- Available as term or permanent [life insurance](https://www.financedigest.com/life-insurance-why-is-it-so-important.html "LIFE INSURANCE: WHY IS IT SO IMPORTANT?")
- Available to older applicants over 60 and those with chronic diseases

Just like in the case of medically underwritten policies, when opting for no-exam term insurance, you’ll be covered in the event of death within the policy’s term.

However, no-exam life [insurance policies represent a greater risk for the insurance company](https://www.financedigest.com/incentive-fm-wins-contract-with-global-insurance-services-company.html "Incentive FM wins contract with global insurance services company"). In turn, they [come with some downsides worth considering:](https://www.financedigest.com/the-rise-of-the-paraplanner-why-consider-a-career-in-this-up-and-coming-role.html "The rise of the paraplanner: why consider a career in this up and coming role")

- Lower [coverage limits (i.e.: coverage limits for medically underwritten insurance](https://www.financedigest.com/5-tips-for-selecting-the-best-car-insurance-coverage.html "5 Tips for Selecting the Best Car Insurance Coverage") can be up to $1-3 million, while no-exam premiums have lower limits, usually $500,000).
- Twice as high premiums
- Lower death benefits
- [Higher costs](https://www.financedigest.com/boohoo-warns-on-outlook-blaming-higher-returns-and-pandemic-costs.html "Boohoo warns on outlook, blaming higher returns and pandemic costs")

## Types of No-Exam Term Life Insurance Policies

Just in 2020, US life insurance beneficiaries were able to claim over [$747 billion](https://www.iii.org/publications/triple-i-insurance-facts/life-annuity-financial-data/benefits-and-claims) from their providers, thus benefitting from financial protection for themselves and their loved ones. And, this is also thanks to more accessible no-exam policies.

These are the three options available.

### Simplified Issue Policy

Simplified issue policies are highly convenient, [offer quick approval](https://www.financedigest.com/buddy-loans-secures-full-fca-approval-to-offer-guarantor-loans.html "Buddy Loans secures full FCA approval to offer guarantor loans"), and provide coverage to those with severe health conditions.

During the application process, you will be required to fill in a detailed questionnaire and answer questions about your medical history and health, as well as [produce your medical records](https://www.financedigest.com/record-jump-in-german-producer-prices-adds-to-gloomy-outlook.html "Record jump in German producer prices adds to gloomy outlook").

Your coverage limit will be capped (at $25,000-$300,000) depending on your evaluation and provide term life coverage. But make sure to fill in the questionnaire correctly, as any incorrect or missing information can cause your policy to be voided.

### Guaranteed Issue Policy

Guaranteed [issue policies are “no-question-asked” policies available to all applicants who can provide general health](https://www.financedigest.com/havensrock-thrive-app-launched-by-punter-southall-health-and-protection-to-address-workplace-mental-health-issues.html "Havensrock Thrive App launched by Punter Southall Health and Protection to address workplace mental health issues") information. They [offer limited death benefits – which are often capped at $25,000 – and come with much higher](https://www.financedigest.com/credit-suisse-offers-higher-deposit-rates-in-asia-to-woo-the-wealthy-sources.html "Credit Suisse offers higher deposit rates in Asia to woo the wealthy – sources") premiums.

### Accelerated Underwriting Policy

Another alternative is accelerated underwriting policies. These are medically underwritten policies that leverage [data-driven processes to assess your health risk](https://www.financedigest.com/the-data-driven-future-of-the-insurance-industry.html), and use algorithms, AI, and patient data.

These term [insurance policies offer high coverage](https://www.financedigest.com/types-of-insurance-coverage.html "Types of insurance coverage") limits of up to $1 million, and are accessible within hours. However, they [might be more suitable for those in good health](https://www.financedigest.com/explainer-how-the-world-health-organization-might-fight-future-pandemics.html "Explainer-How the World Health Organization might fight future pandemics"), with no history of severe medical conditions, and stable finances (since the process involves a credit check).

## Who is No-Exam Term Life Insurance For?

Thanks to their accessibility and convenience, no-exam term life insurance policies help thousands of [people](https://www.financedigest.com/life-post-brexit-people-must-take-precedent.html "Life post Brexit – people must take precedent") access life coverage each year.

However, because of the limited health checks involved, they represent a riskier [deal for insurance providers](https://www.financedigest.com/two-thirds-of-consumers-would-prefer-to-deal-with-a-single-provider-for-insurance-products.html "Two-thirds of consumers would prefer to deal with a single provider for insurance products"). In turn, death benefits and coverage limits are reduced by half and premiums can be twice as high (when compared to traditional term [life insurance](https://www.financedigest.com/life-insurance-for-seniors-can-be-a-costly-mistake.html "Life Insurance For Seniors Can Be A Costly Mistake") policies).

In turn, no-exam [policies are not suitable](https://www.financedigest.com/security-ratings-can-contribute-delivering-suitable-cyber-liability-policy.html "How security ratings can contribute to delivering a suitable cyber liability policy") for everyone, and you should only consider them if:

- You have a health condition that prevents you from accessing exam-based policies
- Your health [rating would cause traditional policies](https://www.financedigest.com/key-fed-official-sees-rates-liftoff-in-2023-as-policy-debate-heats-up.html "Key Fed official sees rates liftoff in 2023 as policy debate heats up") premiums to be inaccessibly high
- You are an adult over 60, looking to provide coverage for your family
- You wish to avoid a medical exam
- You are only after lower coverage limits
- You require a [life insurance](https://www.financedigest.com/buying-life-insurance-after-a-diabetes-diagnosis.html "Buying Life Insurance After a Diabetes Diagnosis") policy within hours

Ultimately, partnering with a life [insurance broker can help you find the right term life insurance policy and premiums for your needs](https://www.financedigest.com/breaking-down-the-types-of-insurance-you-need.html "Breaking Down the Types of Insurance You Need").

**Brought to you by Erika Rykun**


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