Non-medical or “no exam insurance” is life insurance coverage that doesn’t require a medical examination and can be issued within a matter of days, and there are certain advantages for purchasing non-medical life insurance. Among those advantages is that the policies lessen the demand for a medical professional to administer a paramedical exam, and as such, they eliminate the delays involved in taking a medical examination.
It’s also an alternative solution to getting approved for life insurance when the policyholder has a chronic medical condition that may otherwise render them uninsurable.
A disadvantage is that a non-medical policy typically costs more than a traditional policy. That’s because the insurance company knows very little about the policyholder’s current health status – and the risk involved – when it comes to insuring them.
Even so, if you’re under the age of 35, there’s a smaller chance you have a preexisting medical condition, so the premiums are more reasonable.
Before a policyholder decides to purchase a non-medical life insurance policy, there are other options to consider. Some companies may be willing to issue insurance up to a certain limit on the applicant’s declaration of good health if the policyholder has received a medical exam and obtain standard insurance from the same company within three to six months.
Other companies have extended this option to policyholders who apply for additional insurance five years later.
There are also instances where a policy would be considered guaranteed issue under a group life insurance policy or a policy provided by an employer. Group life insurance companies accept all applications for insurance – regardless of group health status – up to a certain limit.
And still, there are insurance companies that will accept a simple examination through a nurse or medical technician. This includes a basic exam with blood and urine specimens. Although this reduces the physician’s fees and offsets some of the risk involved when it comes to insuring an individual, it does not include heart exams or detailed reports that most insurance companies require before offering a policy.