What Is No Medical Exam Life Insurance, and How Does It Work?

Short answer: No medical exam life insurance is coverage where the insurance company skips the physical exam and blood, urine or saliva tests. It doesn’t mean the insurer knows nothing about you. The NAIC says some insurers that skip the exam use data from outside sources instead, such as prescription drug history, motor vehicle records, credit reports and the Medical Information Bureau (MIB). Before you apply, ask which health questions you’ll answer and which records will be checked.

What does “no medical exam” actually mean?

It means the insurance company is willing to decide on your application without a physical exam. It doesn’t mean the company stops looking at your health.

The Texas Department of Insurance (TDI) says insurance companies “use a process called underwriting to decide whether to sell you a policy,” and that it “often includes passing a medical exam and answering questions about your health, job, and habits.” A no-exam policy drops the exam. Ask the agent which health questions remain on the application.

The National Association of Insurance Commissioners (NAIC) explains that “traditional life insurance underwriting requires the collection of extensive medical information including a physical exam and fluids testing (blood, urine, and saliva).” No-exam options skip that step.

What records can an insurer check without an exam?

Several kinds. The NAIC says that with accelerated underwriting, some insurers “forgo a physical exam and supplement the application process with data from external sources.” Those sources can include “prescription drug history and motor vehicle records,” plus “credit reports, motor vehicle records, and the Medical Information Bureau.”

The Consumer Financial Protection Bureau (CFPB) lists MIB, Inc. as a consumer reporting company. It says MIB “collects information about medical conditions and hazardous avocations” and reports it “to life and health insurance companies with your authorization” when they underwrite individual policies.

You can see what’s in your file. The CFPB says that if MIB has a file about you, “it will provide one free report every 12 months if you request it.” It also says you can dispute inaccurate or incomplete information with both MIB and the company that supplied it.

What are the types of no-exam and exam-based life insurance?

Regulators describe these four approaches. Ask the agent which one applies to the policy you’re considering.

A few details from regulators:

• Traditional underwriting takes time. The NAIC says “the timeline from the start of the application process to the issuance of a policy can be up to a few months.”
• Accelerated underwriting isn’t guaranteed to stay exam-free. The NAIC says that “for some applicants, the available data will be insufficient to adequately evaluate their risk profile,” and they “will still need to complete the traditional underwriting process, including the physical exam.”
• Simplified underwriting costs something. The NAIC says simplified underwriting techniques “allow an applicant to forgo the medical exam and collection of fluids in exchange for generally higher premiums.”
• Guaranteed issue is a different product. The South Carolina Department of Insurance says these policies “ask no health history questions,” and the company balances the risk “by charging higher premiums or by limiting the amount of insurance you can buy.” It adds that such policies “may offer only the return of your premiums if you die within the first couple of years after you buy the policy.” The New York State Department of Financial Services (DFS) is blunt: “Don’t Buy a Guaranteed Issue Policy if You are Healthy.”

If you’re weighing a guaranteed issue policy, also read about burial insurance waiting periods.

Does no exam life insurance cost more?

It can. The NAIC’s Life Insurance Buyer’s Guide says: “Usually a policy that doesn’t require detailed health information will cost more and provide less coverage than one that does.”

NY DFS makes a similar point about guaranteed issue policies: “While appropriate for people who have medical problems, healthy consumers will generally receive lower rates by taking medical exams required by traditional life insurance policies.” If you’re in good health and don’t mind an exam, ask a licensed agent to compare an exam-based quote with a no-exam quote before you choose.

Can you get $250,000 or $500,000 with no exam, or no exam over 50?

Ask before you assume. Even with accelerated underwriting, the NAIC notes that some applicants still have to complete the traditional process, including the physical exam. Ask the agent whether the amount you want is available without an exam at your age.

Be cautious of ads that promise anyone can qualify. Under the question “Is it true that some companies won’t turn applicants down?”, the South Carolina Department of Insurance says “such ads are for ‘guaranteed issue’ policies,” and warns that “the premiums can be almost as much as the insurance!” Ask exactly which health questions you’ll answer, which records the insurer will check, and what happens if the insurer decides it needs more information.

If you’re still deciding between policy types, start with what term life insurance is and how it differs from whole life.

Why does honesty on the application matter so much?

Because skipping the exam doesn’t mean skipping the review. The NAIC says “it’s important to tell the truth on the application” and warns that “the insurance company will check your answers.” If it discovers false statements after it issues the policy, the NAIC says “it could reduce or cancel your coverage.”

TDI explains the contestable period: “Life insurance policies have a two-year contestable period.” If you die during that time, “the company may review the information you gave on your insurance application,” and if it learns “you gave wrong information or didn’t disclose something, it can deny payment.” TDI adds that this “can happen even if the wrong information was unrelated to the cause of death or was given by mistake.” If a company denies payment, “it must return the premiums to your beneficiary.”

With no exam results on file, take your time with every answer.

Can you get mortgage protection insurance with no medical exam?

Ask the agent whether the specific policy requires an exam, which health questions you’ll answer and which records the insurer may check. The NAIC’s points about accelerated and simplified underwriting apply to life insurance applications generally.

Don’t confuse mortgage protection with the mortgage insurance a lender may require. The CFPB says “FHA mortgage insurance is required for all FHA loans” and that “mortgage insurance, no matter what kind, protects the lender – not you – in the event that you fall behind on your payments.” See what mortgage protection insurance is and how it differs from PMI. To compare your choices, read mortgage protection vs. term life insurance.

Checklist: before you apply for a no-exam policy

1. Decide how much coverage you need and for how many years.
2. Ask which underwriting path you’d be on: traditional, accelerated, simplified or guaranteed issue.
3. Ask which records the insurer may check, such as prescription history, motor vehicle records or MIB.
4. Request your free MIB report if you want to check it for errors first.
5. Compare a no-exam quote with an exam-based quote if you’re in good health.
6. Answer every health question truthfully and completely, and review the application before you sign. The NAIC says “the insurance company will check your answers so review the application before you sign.”
7. Ask whether the policy pays only a return of premiums in the first years, which SC DOI says some guaranteed issue policies do.
8. Keep your current coverage for now. The NAIC Buyer’s Guide says: “Don’t cancel your current policy until you get the new one.”

A licensed agent can walk you through which options fit your age, health and state. Here’s how calling RestAssured works.

RestAssured is a brand of All Phone Leads, Inc. RestAssured is not a lender, an insurance company or an insurance agency, and isn’t affiliated with any mortgage lender, servicer or government agency. RestAssured connects callers with independently licensed insurance agents.

Frequently asked questions

How does no exam life insurance work?

The insurance company skips the physical exam and fluids testing. The NAIC says that with accelerated underwriting, some insurers use the application plus data from outside sources, such as prescription drug history, motor vehicle records, credit reports and the Medical Information Bureau (MIB), instead. Ask the agent which health questions you’ll answer and which records the insurer will check.

Can I get life insurance over 50 with no medical exam?

Ask a licensed agent which no-exam options are available for your age and the amount you want. The NAIC notes that with accelerated underwriting, some applicants still have to complete the traditional process, including the physical exam, when the available data isn’t enough to evaluate them.

Can I get $250,000 or $500,000 of life insurance with no exam?

Ask the agent directly whether the amount you want is available without an exam, and what happens if the insurer decides it needs more information. The NAIC says some accelerated underwriting applicants are still sent through the traditional process, including the physical exam.

Does no medical exam life insurance cost more?

It can. The NAIC says a policy that doesn’t require detailed health information usually costs more and provides less coverage, and it describes simplified underwriting as skipping the exam in exchange for generally higher premiums.

Can I get mortgage protection insurance with no medical exam?

Ask the agent whether the policy you’re considering requires an exam, which health questions you’ll answer and which records the insurer will check. The same NAIC points about accelerated and simplified underwriting apply to any life insurance application.

Sources

• Life Insurance Buyer's Guide, National Association of Insurance Commissioners
• Accelerated underwriting, NAIC insurance topics
• Life insurance guide, Texas Department of Insurance
• MIB, Inc., Consumer Financial Protection Bureau list of consumer reporting companies
• Common life insurance questions, South Carolina Department of Insurance
• What is mortgage insurance and how does it work?, Consumer Financial Protection Bureau
• Purchasing life insurance, New York State Department of Financial Services

This article is for general education. Policy features, prices and eligibility vary by insurance company and state; your agent will explain the specific terms of any policy before you apply.