What is a No-Exam Life Insurance Policy?

Life insurance policies are an important part of protecting your family from losing your income or other contribution to the family if you were to die. There are several different types of life insurance policies available, and the price of a policy can vary greatly depending upon several factors including:

  • Your age

  • Your medical history

  • Your family’s medical history

  • Your employment

There are numerous benefits to having life insurance and it can be extremely valuable in offering a death benefit payment to your surviving beneficiaries if something should happen to you. Unfortunately, the price for this insurance often includes submitting to a thorough medical examination before coverage can begin. This examination is designed to protect the insurance company from fraud, which often would take the form of a terminally ill person getting insurance for what would be a short-term policy and expecting their beneficiaries to receive a huge payment after they die.

There are circumstances, however when a person may want to get the security of a life insurance policy for their family without submitting to a medical exam. For those instances, there are companies out there that offer life insurance without a medical exam.

Differences With No-Exam Life Insurance

The primary difference in a life insurance policy offered with a medical exam and a no-exam policy is the application. While absolute truthfulness regarding medical conditions and history is requisite on any life insurance policy to be sure of a death payment being made to your beneficiaries, a no-exam policy is much more intensive in their insistence and warning that if you happen to die or seem to die from a condition you had when you applied for the insurance, you will be denied the payment to your beneficiaries.

Another typical issue with these types of no-exam policies is the somewhat higher premium for coverage. There will be a contestability period of one to two years, during which, if you die, the investigation into your death will be significant. If anything suspicious or outright deceptive turns up in the circumstances, a denial of payment will most certainly occur.