No-Exam Term Life Insurance
No-Exam Life Insurance, often called "Simplified Issue," allows you to get coverage without a nurse visiting your home to draw blood or check your blood pressure. It uses data, not needles.
How It Works
Instead of a physical exam, the insurance company runs a digital background check using third-party databases. They typically look at:
- Rx Database: Have you filled prescriptions for heart disease, diabetes, or anxiety?
- MVR Report: Do you have DUIs or reckless driving charges?
- MIB Report: Have you been rejected by other insurance companies recently?
Simplified Issue vs. Guaranteed Issue
It is vital to know the difference between these two no-exam types:
Simplified Issue
You answer health questions. If you are healthy, you get approved instantly. Rates are slightly higher than standard term life, but coverage can go up to $1 Million.
Guaranteed Issue
No health questions asked. You cannot be turned down. However, coverage is low (max $25k), expensive, and usually has a "waiting period" (no death benefit paid if you die in the first 2 years).
Pros & Cons of Skipping the Exam
The Pros
- Speed: Approval in minutes or days, not weeks.
- Comfort: No invasive needles or urine samples.
- Convenience: 100 percent online application process.
The Cons
- Cost: You pay for the convenience. Rates are often 10 percent to 30 percent higher than fully underwritten Term Costs.
- Caps: Coverage is usually limited to $1 Million or less.
- Strictness: If you have a complex medical history, the computer may auto-decline you.