Questions About Life Insurance Without a Medical Exam

Lynda Taylor is an assistant director of Risk Product Development at Northwestern Mutual. 

In the past, applying for life insurance usually required paperwork about your health history and then an appointment with a nurse. That application often involved things like your blood pressure and other vitals and maybe even a blood sample. This type of review—including your health history and medical exam—is part of a process called underwriting, which helps determine your risk of dying earlier than average. Understanding your health allows an insurance company to offer you appropriate premium rates. Typically, the younger you are and the better your health status, the lower your premium rates. 

In recent years, more and more insurance companies have allowed clients to obtain a life insurance policy without a medical exam as part of the underwriting process. And it’s even possible to get policies where no underwriting is required.  

Here’s what to know about getting life insurance, particularly if you’re considering a policy that doesn’t require a medical exam.  

What types of life insurance policies are available without a medical exam?  

Simplified issue life insurance  

Depending on your age and the amount of life insurance desired, you may be eligible for a product called simplified issue life insurance. No physical exam is required, but you’ll have to answer detailed questions about your medical history. With these types of products, it’s very important to provide an accurate account of all prior medical issues so that an insurance company can fulfill its obligation to your beneficiaries when they make a claim. Because there is no possible medical exam, the premiums for this product may be higher than a similar product that involves underwriting. 

Products such as whole life and term life insurance may offer streamlined underwriting, which is another good way to obtain life insurance at the best available premium rates. Although your application still goes through basic underwriting, the process is much quicker than the traditional underwriting process required with other types of life insurance products. At Northwestern Mutual, we can offer some clients “accelerated underwriting.” 

Guaranteed issue life insurance  

You can get guaranteed issue life insurance regardless of your health. But the catch is that some types of guaranteed issue policies may have a waiting period and higher premiums than life insurance policies that go through underwriting. And the maximum death benefit available when purchased individually is much lower than with other products—usually around $25,000. This option is typically used by people who can’t qualify for any other life insurance policy due to their medical history.  

Group life insurance  

Group life insurance is offered to members of a group, usually employees of the same company. Group life insurance does not require a medical exam, but the death benefit with this type of policy is typically not more than one to two times your annual salary. The amount may take care of final expenses but may not be enough to keep your family in the same home and lifestyle as when you were with them.  

This coverage typically ends when you stop working for the employer or leave the group. In some cases you can keep the coverage if you pay for it on your own. Your ability to replace the group coverage may depend on your next employer providing life insurance or your current health status when you apply for your own policy.  

Why do some life insurance policies require a medical exam?

To give you the lowest possible premium as well as a death benefit more than one to two times your annual salary, the insurance company needs to evaluate your risk. One of the ways they make the analysis is through an underwriting process that looks at factors that influence your lifespan. Your past medical history and current state of health are two of those factors. 

For some people, a medical exam is required.  If it shows no major issues, you’ll be considered less risky and can benefit from lower premiums than will someone with significant medical conditions. 

Are there any downsides to life insurance without a medical exam? 

It may sound convenient, but there’s a catch for no-exam life insurance. Actually, there are a few potential downsides to consider: 

1. Limited coverage: Policies that do not require a medical exam, such as simplified issue or guaranteed issue, often come with lower death benefit amounts compared to policies that undergo underwriting. The death benefit these policies offer can sound like lot of money but might not really be all the coverage you need.  And group life insurance that’s tied to your employer usually ends when you leave the job. 

2. Higher premiums: The insurance company assumes a higher level of risk since these policies do not thoroughly assess your health condition. So, premiums for life insurance without a medical exam can be higher compared to policies that go through traditional underwriting. You may be paying the same premium as someone who has a riskier lifestyle than you do because the insurance company cannot tell the difference.   

3. Waiting periods and exclusions: Guaranteed issue life insurance policies in particular may have waiting periods before the full death benefit would be paid out. And some policies may include exclusions for certain preexisting conditions. This could limit coverage for specific health-related circumstances. 

It’s worth keeping in mind that this no-exam life insurance isn’t “no questions asked.” Typically, the insurance company requires at least some paperwork about your medical history. 

Are there any benefits from life insurance policies that require a medical exam?  

If you are a healthy person and can provide evidence of your good health, a life insurance company can offer you insurance at a much lower cost than in cases for which no medical information is provided. You can also typically get a higher death benefit amount with life insurance policies that include medical underwriting. 

The medical exam will probably be worth your time if you’re relatively healthy. It doesn’t take long—about 30 minutes—and could get you better premiums and the ability to buy more death benefit. Having this coverage, which is not tied to your employment, locks in a premium based on your current health and gives you more options when considering future employment opportunities. 

How can I find the most valuable life insurance plan for me?  

A comprehensive and secure financial plan should include life insurance. For a policy that requires medical underwriting, you are always better off applying when you’re young and healthy than waiting until you are older or after you have developed health issues.   

Unlike term life insurance, a whole life insurance policy has benefits beyond the death benefit, including a cash value component and the potential for the cash value to grow faster through dividends1 (which are not guaranteed). Plus, your coverage lasts your entire life as long as you pay the required premiums. Although whole life premiums cost more than term life premiums for the same amount of coverage, your premium and coverage is locked in and will be there for your lifetime. On the other hand, most people outlive their term life insurance, and a death benefit is paid only if the insured dies before the end of the policy term. 

It’s possible to have both whole and term life insurance policies at the same time, and you may be able to convert an existing term policy to a whole life policy. A financial advisor can help you tailor a life insurance plan that fits your budget and insurance needs.  

Are there other ways to get life insurance policies that don’t require a medical exam?  

Many people buy policies for their children to lock in low rates while they are very young and healthy and because applicants under age 17 may not require a medical exam (only a medical questionnaire). 

If you buy a term life insurance policy, your life insurance company may give you the option of converting your term life policy to a whole life policy without a new medical exam. Your whole life policy has level premiums as long as you retain your policy. 

Find the right life insurance for you 

Insurance is important. Before you limit your life insurance options to guaranteed or simplified issue policies, talk with a Northwestern Mutual financial advisor. You can learn about the best options to protect yourself and your loved ones. Your advisor can also take a broad look at your money and help you identify blind spots and opportunities that might otherwise be overlooked. You can see how to leverage multiple financial options that work together to help you protect and grow your wealth. 

¹With whole life, you can receive annual dividends that you can add to your policy to increase your death benefit and accumulated value, take as cash or use to pay premiums.  

For over 30 years, Lynda has been a member of the teams creating, implementing and supporting life products. As an assistant director for the Risk Product Development team, she designs competitive, financially sound products based on client needs and field insights. She also provides technical assistance and consultation on life product mechanics and client benefits.