Drawbacks of No Medical Exam Life Insurance

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  • Post last modified:December 4, 2018

Each one of us wants to buy life insurance because it comes with great sets of benefits such as death benefits, tax benefits, savings strategy, retirement planning etc.

Now when we start discussing the process of buying life insurance the first thing that strikes our mind is – a lengthy process of medical examination and the waiting time for the results henceforth!

Who does not want to skip it! Well, most of us do.

Not only does it take your time in abundance in the primary stages, very often they ask us to show up again when we are in the middle of our busy daily life routines.

Medical examination includes testament of your present status of health as well as your past medical records for checking.

The cumbersome process of medical examination only has created second thoughts among people for buying life insurance or not!

However, since life insurance is the need of time, people turn towards no medical exam life insurance plans these days.

One Note!

If you are aged between 40 to 50 and looking for a no exam policy, find one here.

“No medical exam” policy appears like be a comfortable deal for people who want to avoid the long waiting queues at medical centers for check-ups and tests.

The policy promises quick procession of application and no grinding of the results of medical tests. The picture appears lucrative, however, since every coin has two sides this one too has!

There are drawbacks associated with ‘no medical exam’ life insurance plan that must be known by the applicants who are willing to spend their hard earned money into it.

This article is meant to guide our readers towards making a well-informed decision towards buying life insurance.

Here are Enlisted Some Drawback

The Questioning Still Exists

insurance companies stall ask questionsSome people apply for ‘No medical exam’ life insurance policy because they believe that they can skip the questioning part from the insurance agents.

Perhaps they are not aware that even the companies that offer no medical examination policy have to rely on the questions and answers from their customers.

They will inquire about your current health status and body statistics (height, weight, age, gender, blood pressure etc.) when you go on to apply for it.

Although it is said that everyone can apply for no medical exam policy but one must know that not everyone qualifies to avail its benefits.

The companies still check the information provided by you from the medical information bureau and issue policies to their customers only after this information is found correct.

This is the reason that many aged people find it difficult to qualify no medical examination policies as well. Hence, their only hope is a no exam plan.

In some cases, your coverage benefits get reduced which is again a compromising situation in terms of life insurance plan.

So be prepared to answer some basic questions in true spirit when you go to apply for this policy.

These Policies are Costlier

Medical examinations are a mandatory part of buying standard life insurance policies as they give a fair idea about the health condition of the applicant. You will have to go to their prescribed medical facility and apply for the medical examination.

This experience is no different from your annual medical tests or health checkups. People often want to avoid these medical tests because of different reasons. At first, these medical examinations are time taking processes as one needs to wait in long queues for their turn itself.

Also, there are tests that need you in a particular state e.g. -for urine test; it may require you to go on an empty stomach etc. If you haven’t met the condition you may be asked to visit them again.

Even after that, you need to wait for days for the results to arrive before you can get the policy. These are a few common reasons people want to skip the step of medical examination and instead pay more for a convenient facility.

No medical exam policy helps such people by making them skip the step of the medical test. However, these policies are costlier than traditional insurance policies.

Since they do not require your medical reports it raises their risk bar to a very high quotient and this, in turn, affects the rates of the policy itself.

Life insurance companies need to cover themselves with the risk of not knowing the critical health state of their customers, if any, and thus risk on leveraging a large sum of death benefits to the prospective customers.

Therefore, they need to quote a higher price for the policy. In one way the customers are paying extra for an extra facility. But we need to know the price difference which is remarkably significant.

Limitation of Choices

In policies like no medical exam life insurance, there is often lack of choices as well as lack of points under coverage. This is the basic agenda and one of the major drawbacks of the policies.

The customers often complain that despite paying a high amount towards the purchase of policy they get limited areas of coverage. You will have to shell extra money for buying the riders such as medical benefit rider, annual check-up rider, burial and funeral costs rider etc.

The reason stated by the companies here is that every customer who buys this policy comes with their own set of predicaments. If the company issues a generalized package, the price of the policy will be even more.

Therefore, the customers can choose and pay for their desired riders and thus make a customized policy for themselves.

Lower Coverage Amounts

Unlike traditional insurance policies, the ‘no medical exams’ based policies come with lower coverage amounts. Since each company has different dimensions of coverage, there is a maxim variation in the amount they offer under coverage.

Also, it depends on the riders that you purchase over your policy that would decide the number of coverage benefits. But in either case, it is a significantly lower amount than what we get in traditional insurance packages.

The customers who are looking for a higher amount of coverage need to book themselves under multiple insurance plans.

They can choose to buy a policy from multiple companies either or multiple plans from the same company- which is their total discretion.

Be fully aware of the coverage benefits and other aspects of buying the policies if you buy from different companies as each firm has different agendas of business and market reputation.

Higher Premium Amounts

Another important factor that needs to be considered while buying no medical exam policy is the premium that needs to be paid is higher than other policies.

The reason behind the high cost of premiums is that the applicants for this kind of policies are generally at higher risk of health.

So, when the risk is higher for the company, the compensation is spread from basic policy cost to the rates of premiums as well. The premium amount can be as much as twice or thrice of the price that one may need to pay towards a traditional life insurance plan.

Now, considering the above-mentioned drawbacks about a no medical exam insurance policy, the obvious question that arises in our mind is that-

Who Should Buy No Medical Exam Life Insurance Policy?

Well, we would like to help you attain clarity on the subject.

Such policies are a good deal for candidates who do not look forward to varied coverage and seek convenience at any cost.

Undoubtedly, the prices are higher but the fact that you get such policies in a very short span of time and without having to wait for another week or fortnight- is an added advantage that saves time and efforts of people. Usually, people who are super busy in their lives and do not fret about money at hand can definitely buy such policies.

Secondly, if your priority is to get only specific and limited coverage then too you are the right person for buying this policy.

In traditional policies, there is a specific set of ‘mandatory’ coverage points that you cannot bargain upon and we end up paying for all those coverage areas even if we do not require them. Here, you pay only for what you want to get covered.

However, the prices are significantly higher and one needs to decide based on their choices and circumstances.


No medical exam life insurance policy offers comfort, convenience and a lot of time-saving for people. The prices are higher undoubtedly but this is what you pay for extra expediency when you buy a policy.

We suggest our readers to carefully consider all their options before buying the no medical insurance policy. The Internet is a great source of learning and finding of the best policies in the market. Various companies offer varying policies under different structural outsets.

A thorough research will help the buyers in order to find an ideal policy for themselves! It will not only save money but also help them to save the regret that may come later on by not considering all their options viable.

If you are a lack of time and resources to do the necessary research on the internet, then an experienced life insurance agent can help you in finding the most viable policy as per your needs.

Linda Chavez

I'm a burial & senior life insurance expert, independent agent, Founder & CEO of Seniors Life Insurance Finder. I have been working in this sector since 2004 and established my own company in 2014. I have a team of seven members, and we are trying hard to share the knowledge we've gathered. We know how difficult often it is to find an affordable policy. Hence, we are doing our best to help you.