No exam life insurance has been getting a lot of hype over the past few years, and specifically since the onset of COVID-19.

The reason for its growing popularity over the past few years is due to the sheer convenience of the product. No exam life insurance allows you to get life insurance coverage immediately or within a few days, unlike traditional life insurance that can take between four to eight weeks to qualify for. These days, no exam life insurance is even more popular since it allows you to skip the medical exam and minimize contact with people you don’t know. In the age of COVID-19, these precautions are important, especially for the at-risk population.

As if these benefits weren’t enough, term no exam life insurance is now being sold at very competitive prices. You can get a free quote here and read on to find out how the pricing for no exam life insurance works.

The Cost of No Exam Life Insurance:

The cost of traditional life insurance is based on the underwriting process, a process in which insurance underwriters assess every detail of your health and lifestyle and then compare them against millions of statistics. Their job is to determine what level of risk you pose to the insurer. For example, a smoker poses more risk to an insurer than a non-smoker. Someone with heart disease poses more of a risk than someone without heart disease.

While these examples are simple, the process becomes more complicated when someone has more than one health issue, which is often the case. The underwriting process is why it takes so long for insurers to decide whether someone qualifies for coverage or not.

With no exam life insurance, the underwriting process is greatly simplified. In some cases, it’s eliminated altogether. The advantage of this is that the approval process is much quicker and easier. The disadvantage is that when insurers don’t have a clear picture of your health, they are unable to accurately assess their risk. Therefore, they end up raising the monthly premiums as a way of making up for the risk they’re taking. How much they raise the price depends on the type of no exam life insurance.

Simplified Issue No Exam Life Insurance:

Simplified issue is the most common type of no exam life insurance. It can be sold as a term or whole policy, but as opposed to its traditional counterparts, the no exam version only includes a few health questions. Some insurers use AI algorithms to gather digital information about applicants to gain a clearer picture of their health. Data can be gathered from insurance databases, pharmacy records, and DMV reports.

If you’re in relatively good health and don’t have a history of reckless driving, you can probably qualify for the simplified issue. Coverage can go up to $1 million and the price difference, when compared to traditional insurance, is often negligible. Approval can be instant or take a few days, depending on the insurer.

Guaranteed Issue No Exam Life Insurance:

Guaranteed issue is a unique type of policy that guarantees coverage to anyone who applies. No health questions asked, just a few basic personal details like age, gender, and location. The application process is entirely electronic and approval is granted immediately.

As you can imagine, the cost of convenience and guaranteed coverage is high. Monthly premiums for a guaranteed issue are usually higher than any other type of life insurance, plus, coverage is capped at $50,000. Guaranteed issue policies also come with a two-year waiting period that stipulates that the full death benefit will only be paid out after two years of purchase. If you die before two years is up, the premiums + interest is refunded.

Why would someone buy this type of no exam insurance given all the strings attached? Because of the benefits listed above. Someone who has serious health issues will not likely get approved for the simplified issue or traditional life insurance. Guaranteed issue, on the other hand, guarantees coverage. Plus, you get to skip the medical exam and don’t have to wait for the approval.

Group No Exam Life Insurance:

Group insurance is usually offered by an employer that pays all or some of the monthly premiums. No medical exam is required nor are any health questions asked. There’s really no reason not to get group no exam insurance if it’s offered, but there is a reason to add another life insurance policy.

Group insurance usually offers coverage that’s on par with your annual salary, which means it won’t be enough for many young families. Additionally, coverage is tied to your job. If you leave, it can be complicated to take your policy with you (or impossible). Therefore, while there’s no reason to say no to group life insurance, you shouldn’t rely on this as your sole life insurance policy.Benefits of No Exam Life Insurance: Whether you’re interested in no exam life insurance because you don’t want to wait months for a traditional policy or you are trying to socially distance due to COVID-19, you are likely to discover additional benefits such as a quick application process and easier approval. While some types of no exam insurance can be costly, there are other options that won’t break the bank.