There has been significant growth in no-medical exam life insurance policies, according to the
The demand for
The report includes data from the top 10 insurance companies offered through the
"To keep up with our customer demand, we went from having three no-medical exam life insurance options in early 2020 to seven in 2021, with more on the horizon for 2022," said Eloise Spinello, associate director of account management at Policygenius, in a statement. "More insurers are adjusting to demand by offering no-medical exam options that account for all health classes as well, rather than reserving these options for only the healthiest applicants."
Historically, the majority of people who purchased life insurance have done so in person with an agent but as the use of
In 2020, only about 42% of people preferred to buy life insurance in person, according to the
Data shows that no-medical exams term life insurance policies are priced comparably to term policies requiring a full medical examination, some policyholders paid less, according to the Policygenius Life Insurance Price Index. As consumers age, the price of life insurance goes up no matter if the policy requires a full medical examination or is a no-medical exam policy.
“Instant decisions are a big factor for some of our customers. Other customers mention upfront that they don’t want the medical exam, so that’s another major driver,” Spinello said. “Even when no-med policies are slightly more expensive, say $5 to $10 more per month, customers are still opting for those because of the quicker turnaround time.”
