Exam vs No Exam Life Insurance: A True Cost Comparison

Explaining the cost increase for no exam life insurance

Yes, most people will pay a little more for the convenience of skipping the medical exam.

But I have some good news

It’s not nearly as much as you think if you apply at the right company.

The Wrong Way to Compare No Exam Life Insurance Pricing

There is some information floating around that portrays no exam coverage as MUCH higher than traditional policies. This is due to how it is incorrectly compared.

If you only compare same company vs same company, it can SEEM very expensive. Below we’ll take a look at a few major insurance providers.

40-year-old male in average health (Standard health class) 20-year term policy for $250,000.

So yes, there are certainly some companies (big names too) that DO charge much higher rates for no exam life insurance.

The true cost difference between no exam and medical exam life insurance policies

Remember how we said this is NOT the proper way to compare?

 The True Cost Difference Between No Exam and Medical Exam Life Insurance Policies

The only way to truly understand the difference in price is to compare the best (lowest rate) no medical exam policies vs the best ones that DO require taking the traditional exam. These will usually NOT be from the same company.

We did a massive study analyzing thousands of rates across all carriers. What we have found is this:

No exam life insurance is NOT that much more expensive!

The table below shows the average increase in prices for no-exam vs exam life insurance policies for ages 28-60.

Health Rating % Increase Range Average % Increase
Preferred Plus Non-Smoker 0% to 9% 4%
Preferred Non-Smoker 0% to 13% 3%
Standard Plus Non-Smoker 0% to 8% 3%
Standard Non-Smoker 4% to 18% 8%
Preferred Smoker 7% to 43% 18%
Standard Smoker 9% to 27% 16%

For reference, below is additional data from this study that includes specific examples.

Rates are all for 20-year level term policies for $250,000 in life insurance coverage. These are the best rates currently available. Rates subject to change. Please consult an independent broker for your custom insurance quote.

Preferred Plus Non-Smoker Health Class

Preferred Non-Smoker Health Class

Standard Plus Non-Smoker Health Class

Standard Non-Smoker Health Class

Preferred Smoker Health Class

Standard Smoker Health Class

No exam life insurance rates do not cost as much as people think they do

No exam rates are not nearly as high as you may have been led to believe. Working with an independent broker who knows the landscape can help you accurately compare rates and policies that are best for your specific needs and situation.