Since the advent of COVID-19, life insurance companies have had to make a fast adjustment to become more palatable to consumers. Pre-COVID-19, many companies offered no exam life insurance policies, but as we find ourselves in the midst of a pandemic that’s still going strong, these no exam policies have become more important than ever. No exam policies allow consumers to get coverage immediately, and at the same time, they minimize the need for human contact by doing away with the medical exam aspect of the application. This is exactly what the COVID-19 situation calls for.
Whereas the past five years have seen an increasing consumer demand for instant gratification, i.e. online shopping in seconds and next-day delivery, the insurance world has been slow to catch up. COVID-19 has accelerated the need for a fast life insurance approval process, and insurers have responded by offering more types of no exam policies.
Since there is now a fairly high supply and demand for these types of policies, prices are becoming more competitive. While certain policies, like guaranteed issue, will always be on the more expensive end of the spectrum, other no exam policies like accelerated underwriting, are now offering rates that are on par with those of traditional life insurance policies. You can request a free quote here to see for yourself.
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Who Can Qualify for No Exam Life Insurance?
While most life insurance companies are still offering insurance during these times, there are some people who may have a harder time qualifying. These people are those who fall into the high-risk category for COVID-19 as defined by the CDC. The list includes people who have:
- Cancer
- Type 2 diabetes
- Heart disease
- Sickle cell disease
- Chronic kidney disease
- COPD (chronic obstructive pulmonary disease)
If also includes people who smoke, are pregnant, and who are extremely obese.
Accelerated Underwriting No Exam Life Insurance
People who do not fit the descriptions mentioned above will have an easier time qualifying for no exam life insurance, specifically, accelerated underwriting. This type of life insurance is relatively new to the market. It’s not a no exam policy per se, but rather, it’s a traditional policy that allows certain people to bypass the medical exam.
Here’s how it works:
You apply for a life insurance policy that offers the option of accelerated underwriting. On the spot, the insurer will tell you whether you qualify to skip the medical exam.
How is this possible? Accelerated underwriting policies use sophisticated algorithms to review applications in real time and make an immediate assessment regarding the person’s health. These algorithms, some of which use AI, collect digital information about you in a matter of seconds. The information, which you must give permission to be collected, includes previous life insurance applications from the MIB, pharmacy records, DMV records, even credit reports.
The algorithm then does its magic and determines whether you are statistically healthy enough to skip the exam. If the answer is yes, you can get approved for life insurance immediately. If the answer is no, you’ll have to undergo the medical exam and the approval process will take longer.
Benefits of Accelerated Underwriting Life Insurance
If you’re someone who is in good health, applying for accelerated underwriting life insurance should always be your first step before applying for any other type of no exam insurance. The reasons for this are:
- Accelerated underwriting insurance is competitively priced (unlike guaranteed issue, which offers approval on the spot but is very expensive)
- Accelerated underwriting can offer approval on the spot (as opposed to simplified issue, which is less expensive but can take up to a few weeks to grant approval)
Simplified Issue and Guaranteed Issue
These are two other kinds of no exam life insurance that you can apply for if you don’t qualify for accelerated underwriting.
Simplified issue is usually a term policy that asks some health questions, but not as many as a traditional life insurance application. There is some underwriting involved and approval can take a few days or weeks, depending on the insurer. Coverage can go up to $1 million.
Guaranteed issue is a type of policy that anyone can qualify for, no health questions asked. It’s ideal for people who have serious medical conditions and can’t qualify for any other kind of life insurance. With COVID-19 still prevalent, people with serious health issues who can’t secure other types of life insurance will do well with guaranteed issue. The downsides of this type of policy are that monthly premiums are high and coverage only goes up to $50K.
Bottom Line
As mentioned above, if you’re not in good health or you are considered high-risk for COVID-19, it will be hard to qualify for accelerated underwriting. Fortunately, you can try for simplified issue or guaranteed issue if your heart is set against undergoing a medical exam.
As we’re still in the midst of a pandemic, there is a strong appeal of a life insurance policy that you can get quickly and without having to see a medical professional. The fact that no exam policies are becoming more competitively priced due to the large demand will only work in your favor.
