Life insurance is a great way to protect the finances of your loved ones in the event of your untimely death, but that safety net doesn’t come for free. In addition to paying premiums, most life insurance policies require customers to seek an in-person medical exam.
This mandatory medical exam can prevent many would-be policyholders from life insurance protection. For people in poor health, a medical exam could increase their premium payments or outright disqualify them from a desired policy. For others, making an appointment with a medical provider is simply too big a hassle.
If you’re looking for health insurance—but you’d rather skip the in-person medical exam—you need to look for a company that offers a no-exam life insurance policy. There are four types, each with pros and cons, as they’re meant to be purchased by different types of people:
- Simplified Issue
- Instant Approval
- Guaranteed Issue
- Group Life
Simplified Issue Life Insurance
Simplified issue life insurance policies are very similar to traditional life insurance products: applicants (ages 18–60) fill out an application, request $25,000–$2 million in coverage, and, once approved, pay monthly premiums during their policy’s term length.
Instead of a medical exam, simplified issue applicants only have to answer a medical questionnaire and release their medical records to the policymaker. All in all, it only takes about 20 minutes to apply online. Applicants can usually find out if they are approved for coverage in as little as two weeks.
If you are in good health, simplified issue life insurance may be more expensive than a life insurance policy that screens your health in a medical exam.
Is simplified issue life insurance right for me?
Simplified issue life insurance is a good fit for two types of people:
- Applicants who are in poor health, who stand a better chance of approval without a medical exam.
- Applicants who are in good health, but do not have the time or energy to complete an in-person medical exam.
Instant-Approval Life Insurance
Instant-Approval life insurance policymakers use AI and data-crawling technologies to accelerate their underwriting process, meaning applicants can apply and get approved in seconds.
Applicants can seek $25,000–$2 million in term life insurance protection. Typically, applicants only have to fill in some basic identifying information, as well as release their medical records to the insurance provider. In just a few minutes, the policyholder can use this information to examine an applicant’s records, estimate their future health, create a premium estimate, and accept or deny the applicant.
Is instant-approval life insurance right for me?
We recommend instant-approval life insurance to most people (ages 18–60) seeking a term life insurance policy because there is no almost no time investment on the applicant’s end. Instant-approval policy applications take very little time to complete, making it very easy for any applicant to apply to multiple policies from various policyholders and find the best deal.
Like simplified issue life insurance, instant-approval may be more expensive if you’re in good health than a life insurance policy requires a medical exam.
Guaranteed Issue Life Insurance
Where simplified issue and instant-approval life insurance provide the same financial protection as traditional life insurance, guaranteed issue life insurance is designed to provide coverage only for end-of-life and burial expenses for older adults. As a result, the death benefit is much smaller (maxing out at about $25,000). The death benefit is also “graded,” meaning that beneficiaries may not receive the full amount if the policyholder dies too quickly after signing up for coverage.
Guaranteed issue life insurance policies are very inclusive; most applicants ages 45–85 are accepted. Applicants do not have to take a medical exam or even answer medical questions during the application: requesting a policy and providing your age is all the policymaker requires.
Is guaranteed issue life insurance right for me?
If you are an adult ages 45–85 and you’re concerned about the financial burden your death may impose upon your loved ones, guaranteed issue life insurance can provide the safety net you need.
Group Life Insurance
Group life insurance is a blanket term describing insurance that cannot typically be purchased by individuals. As the name suggests, group life insurance policies are designed for large groups of people, such as a company’s team of employees.
Group life insurance is an outlier in the application process. “Applicants” do not need to even apply; instead, individuals opt-in to their employer’s group life insurance during the onboarding process. Employers decide the specifics of the group life insurance plan as well as typically pay for the premiums.
Group life insurance policies offer smaller death benefits than traditional life insurance, usually 1X-2X a person’s annual salary.
Is group life insurance right for me?
If your employer offers group life insurance, and your employer does not require you to pay premiums on the policy, you might as well sign up. In the event of your death, your beneficiaries will receive a payout that could make a meaningful difference, at no cost to you.
Find the Right Policy for You
At FindInsurance.com, we know which policymakers offer the best deals. If you’re looking for either simplified issue life insurance or instant-approval life insurance, we’ve compiled a list of the best policies on the market.