What is No Exam life insurance?

A lot of people are talking about the new buzz which is no exam or guaranteed issue life insurance. No exam or guaranteed issue life insurance is a fairly new product in which an individual may purchase life insurance online with a credit card and receive coverage without having the annoying blood and urine tests done.

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What does this mean? It means that almost anyone can purchase life insurance today and receive coverage the same day. Some people have problems scheduling time for testing and some people simply don't do needles very well. The convenience of being able to purchase insurance online and receive your policy in your inbox is very attractive.

There are some drawbacks and no exam life insurance isn't for everyone. No exam life insurance usually is limited to a certain death benefit. Most companies I have seen that offer no exam insurance have a maximum of $150,000 in coverage. It's necessary for a life insurance company to set a maximum to cover potential losses. The chance of an insurance company receiving a claim for no exam life insurance is much greater than standard Term or Whole life insurance policies because they make those individuals take medical exams and they only insure the healthy ones or they have such a high premium it's still profitable for the life insurance company.

Another drawback is the policy premium. Since the risk is greater for the life insurance company the premiums for no exame life insurance tend to be higher. To some, the higher premium and lower death benefit are good deals compared to going through a full medical exam.