3 Reasons You Should Buy No Medical Exam Term Life Insurance

UPDATED: Mar 26, 2020

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You’re busy. I get it. If you’re like me, you probably feel stuck in a constant tug-of-war between all the things you have to do and those you want to do. My guess is buying term life insurance falls in the ‘have to’ category.

If the last thing you want to deal with is a long, drawn-out life insurance application process, you’re in luck. Life insurance companies created no medical exam term life insurance for people like us. It’s fast, simple, and convenient. Apply today, have coverage tomorrow (in some cases). If not tomorrow, then soon after that.

How do they do it? They start with an electronic application that includes an electronic signature. So there’s no printing, signing or mailing paper forms. Next, they streamline the underwriting review by pulling all reports electronically. These include a Motor Vehicle Report (MVR), a prescription drug history report, and a Medical Information Bureau report (MIB). From these reports and the application, the company determines if you qualify for coverage immediately. If not, your application may be reviewed by a real person.

Still not sure if this type of policy is right for you? Consider these distinct advantages.

1. Speed

Did I mention it’s fast? I hope so because I can’t overstate that no matter how many times I say it. We’re talking hours (24 – 48) versus weeks. The quick process is the number one reason people choose no medical exam term life insurance. Busy people like you and me.

Here are a few reasons you might have the need for speed.

Loan Collateral – Banks, credit unions, and even personal lenders regularly require life insurance policies as collateral for loans they issue. Unfortunately, they often wait until the end of the underwriting process to ask you for one, which leaves you scrambling at the eleventh hour to get a policy in place before the loan offer expires.

Business Trip or Vacation – Traveling overseas can be a harrowing experience with the current state of world affairs. Heck, even a domestic trip can be risky these days. A no medical exam policy may be a good idea if you loathe flying (or, at least, the falling part), don’t like rough seas, or just want to play it safe and have coverage.

However, if you find yourself facing a last-minute business trip to the Middle East, you’re likely out of luck. Most life insurance companies will not issue a policy if you are traveling to a country on the US State Department’s Travel Advisory List.

Court Order – Divorce settlements will often include a provision for one or both parties to carry a life insurance policy with the other spouse as the beneficiary, especially when the couple has minor children or when alimony is awarded. As with loan collateral policies, the courts don’t always provide adequate time to apply for coverage. And even if they do, you may prefer to get a policy quickly so you can finalize and move on.

2. Did You Say Exam? Umm – No, Please.

Not a fan of needles, eh? Well, you’re not the first belonephobia sufferer we’ve ever met. And you’re certainly not alone. The CDC estimates that 20 percent of the general population has some degree of fear associated with needles and injections. I think it’s higher than that. Regardless, the biggest advantage of a no medical exam term life policy is you don’t have to meet with an examiner or doctor. And no exam means no needle in your arm, or anywhere else.

For some people, it’s not about the needle (or so they say). Other reasons you may not be overly excited about an exam are:

  • You’re just too busy (see number 1, above).
  • You don’t like strangers coming to your house.
  • Fasting for eight hours sounds as enjoyable as chewing light bulbs.

3. You’re a Student. Or the Parent of One.

Student loans got you down? It’s no secret that the cost of a “higher” education is doing just that: getting higher and higher. As a result, an overwhelming number of college students are taking on student loan debt. And in may cases, their parents are cosigning for those loans. So what happens to those loans in the event of the student’s death? You can probably guess the answer:  The parents who cosigned are responsible for repayment.

A no medical exam term life policy can help protect students and their parents from becoming saddled with these student loans. It can also be a very convenient option for these reasons:

  • The student is young – Rates are very low for younger applicants.
  • The student is healthy – If this is true, then approval at a low rate is almost guaranteed.
  • The student attends school out of state – Scheduling and coordinating a paramedical exam for a busy college student in another state is no easy task. Especially considering that the examiner is almost always mobile and completes the exam in the applicant’s home. That doesn’t sound like much fun for a college student living in a dorm.

Now Available in XL

If any of these examples ring a bell for you, remember… There is a better way. We now work with three life insurance companies that offer no medical exam term life insurance. Our newest, Principal Financial, has policies from $50k up to $1M — depending on your age. It won’t always be the least expensive way, but convenience often comes at a cost.

One more thing to note… No medical exam term life insurance provides the same coverage as regular term life insurance. Despite the absence of an exam, you will be covered for death by accident and by natural causes. I like to think of it as regular term life insurance on Xanax: 50 percent less likely to cause an ulcer.

Tim Bain

Tim is a licensed life insurance agent with 23 years of experience helping people protect their families and businesses with term life insurance. He writes and creates stuff for QuickQuote and other insurance and financial websites. You can find him on Twitter.

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