No Load Life Insurance

What is Life Insurance with No Medical Exam?

Advertisements and offers for “no-exam life insurance” pop up just about everywhere. The proposition is tempting, but what does it actually mean?

Generally, when purchasing a life insurance policy, the insurer will require some form of underwriting. This is essentially an investigation into your health to assess your mortality risk. The no-exam option is simply a convenient way to obtain the same policies such as term or whole life insurance without the need to be assessed by a paramedic or doctor. The requirement to undertake blood and urine tests is also dispensed with.

Types of policies with no medical exam

Almost all underwritten life insurance policies including term, whole life and burial are available with or without a medical exam. Some companies may not offer their no-exam counterparts. The policies which do not require examination are either easy/simplified issue or guaranteed issue policies.

Although no medical exam is required, simple issue policies still ask some health questions. With guaranteed issue, there is no medical exam and no health questions.

Generally, group life insurance (whether through an employer or association), graded-benefit policies and pre-need products are inherently “no exam” policies.

What are the “few health questions”?

Simplified issue policies still necessitate some information about your health. The general Yes/No questions include:

• Details of your age, height and weight.
• Your gender
• Whether you currently smoke.
• Whether you’ve used nicotine or tobacco products in the last 12 months.
• If you have any medical conditions.
• Whether you have a laborious job.

Detailed “No Exam” Questions

Most no-exam policies only ask about your gender and tobacco or nicotine use in the past 12 months. Others can have more in depth inquiries. The more comprehensive information about you required by various companies can include the following details:

• Current medication for blood pressure and/or cholesterol.
• Whether your blood pressure exceeds a certain amount.
• Cholesterol medication.
• If your cholesterol exceeds a particular level.
• Parent or sibling diagnosed with or died from cancer or heart disease before a specific age.
• If you are a hospital or long-term care facility resident.
• Whether you have AIDS or HIV.
• If you have been declared terminally ill.
• Whether you’ve received advice or treatment for certain conditions such as anxiety, depression, diabetes, drug abuse, heart disease, sleep apnea or other serious medical conditions.

Benefits of No Exam Life Insurance

• Quick and easy process, some even feature online policy print out.
• Often used to supplement existing coverage.
• More likelihood of obtaining coverage.
• No need to see a doctor or paramedic.
• No needles or tests.

Negatives No-Exam Life Insurance

• Limited face value amounts.
• More expensive due to a higher potential risk.

Should I Choose a No-Exam Policy?

Avoiding the exam sounds like a good option, but it does come with a cost. Life insurance that doesn’t require medical examination is more expensive than ordinary insurance. Insurers must assume there is a higher risk when they are not able to properly assess your health. The cost of that risk must ultimately be passed on to you. Also, the allowable face value or death benefit is lower with no-exam insurance.

You are more likely to obtain a better rate with an underwritten policy if you are generally in good health or even if you have had some health issues in the past. If you prefer higher coverage at a lower cost, you should seek to undertake the exam. Dedicating your time to undergo the examination will give you the best value.

If I DO want to take the exam, what’s involved?

The process varies between companies and depends on the type of policy, the face value amount and your age. Some companies do not even require underwriting if you are young and the face value is relatively low.

Insurance companies will require you to provide information about your health on one part of the application form. A physician or paramedical chosen by the insurer will then complete the other section following a medical exam with you.

The exam and lab work requirements differ between companies. Usually, the insurer sends their physician to your home. The exam is not performed by your own physician (although the insurer can additionally request an Attending Physician’s Statement from your doctor).

The basic medical exam is performed by a paramedical who takes your medical history, height, weight, pulse and blood pressure. They may also be required to collect blood and urine samples.

An ECG is usually required for applicants over 50 who are seeking a moderately high death benefit. When the person’s age and required face value are high, the assessment may need to be carried out by a Doctor rather than a paramedical and may also include the treadmill test.

Tips for the medical exam

If you decide to take the medical exam, here are a few ways to improve your results on the day:

• avoid alcohol the day before the exam.
• go to bed early the night before and rest your body.
• don’t drink any coffee, tea or any other drink containing caffeine at least one hour before the exam.
• Don’t consume food with high cholesterol and limit your salt intake at least 24 hours prior to the exam.
• avoid arduous physical activity within 24 hours of the exam.