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If you’re looking to buy life insurance, you should know that insurance companies often want you to be examined by a doctor before you buy your policy. But if the thought of a medical exam is stressing you out, you can also opt for a no-exam policy that lets you skip the exam.
Several of the best life insurance policies from CNBC Select offer no-examination coverage. One of our top picks for seniors, Mutual of Omaha offers life insurance policies without a medical exam. And the best choice for customer satisfaction, State Farm also offers coverage without a medical exam.
Omaha mutual life insurance costs
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Mutual of Omaha offers term, full, indexed universal life insurance and universal life insurance with many options.
Policies available up to age 85. No medical exam options available
The best way to estimate your costs is to request a quote
App availablePolicy Highlights
State Farm offers a variety of term, total, and universal life insurance products to choose from, among other types of insurance. It is rated highly for both financial stability and customer service.
A++ AM Best Financial Strength RatingTop Customer Satisfaction RatingNo medical screening option availableLow coverage limit for no medical screening optionShow MoreShow Less
However, you are likely to pay a price in higher premiums if you don’t do the testing when choosing your life insurance policy. Below we look at why life insurance companies charge more for audit-free policies and help you decide if it’s worth it for your situation.
Medical exams are used in underwriting, which decides how much a person will pay in premiums based on their risk profile. These tests usually measure your height, weight and blood pressure. They will also likely include a blood and urine test.
If you are relatively healthy when you test, you often pay less premiums because the insurance company sees you as less risky. But if you don’t undergo a medical exam, you’re depriving the company of information that it would use to determine its prices. “They will go ahead and assume the worst, they will assume that you want to keep some information from them,” says Michael Giusti, senior writer and analyst at Insurancequotes.com. “They will rate the policy higher.”
People with a medical condition that could exclude them from a policy benefit the most from this type of insurance. While the no-check option is likely to offer a lower amount of coverage compared to a policy that requires a check, it’s certainly better than no coverage at all.
No Exam Insurance also appeals to people who don’t think a medical exam is worth the disruption to their daily lives and would rather pay the higher premiums. Although exams usually last less than an hour and the doctor can even come to your home, you may need to avoid going to the gym in the morning or fast on the day of the exam. “Time has value, and maybe you just don’t want to take the time to do the evaluation,” says Giusti.
Finally, anyone wanting to keep their medical history as private as possible would see the value of audit-free life insurance. “Maybe you have high blood pressure or cholesterol,” says Giusti. “Maybe you have a reason you don’t want to talk about it, so you’re willing to pay that higher price.”
The pros and cons of no-test life insurance
Here is a brief overview of the advantages and disadvantages of this type of insurance:
Advantages
If you have health conditions, qualifying can help you when you would not otherwise qualify for coverage. You avoid disclosing health issues that you’d rather keep secret
Disadvantages
Almost anyone who is in good health will pay more premiums on a policy without a health screening than on a policy that requires a health screening. Your coverage may be limited without verification
There are several types of no-hassle life insurance policies that you will come across when you start looking for coverage. Some of the types you will find are:
Group Life Insurance: Your employer may offer life insurance coverage, usually in small amounts that are a multiple of your salary. However, you may be able to purchase additional coverage through this policy. It usually ends when you quit your job. Simplified life insurance issuance: Instead of taking an exam, you must answer questions about your health to qualify. Guaranteed Life Insurance Issuance: No medical information is required and anyone can be approved. However, these policies usually offer little coverage. Accelerated life insurance: A type of life insurance that uses data from a third party about your health and habits, such as:
Life insurance without an exam can make sense for some people, especially if they have medical conditions, but those in relatively good health will find less expensive coverage with a policy that requires an exam.
Editor’s Note: Any opinion, analysis, review, or recommendation expressed in this article is solely that of the Select editorial team and has not been reviewed, approved, or otherwise endorsed by any third party.
