The short answer
Life insurance isn't a separate product. It's a term life policy, and for you the difference is mainly how carriers review the application and set the rate. Rules vary by carrier, so comparing several through an independent agent is the simplest way to find a good fit.
This guide answers the most common questions about how much is life insurance.
A medical exam is the part of applying that many people dread. For a lot of applicants, it is now optional.
Here is how no-exam term life works and how to compare it fairly.
Part of our complete guide: Term Life Insurance: The Complete Guide.
Quick answer
You still answer health questions; the insurer checks records. Decisions can be fast; amounts may be capped. Healthy applicants should compare exam and no-exam quotes.
MarketView Agency is an independent insurance agency (National Producer Number 18345705).
On this page
- Life insurance quotes for families: what affects the cost of life insurance for you?
- Choosing the amount
- How much life insurance do you need?
- Do you need a medical exam?
- How no-exam decisions are made
- What happens after you apply: underwriting
- Term lengths at a glance
- Who term life insurance is for
- Frequently asked questions
Life insurance quotes for families: what affects the cost of life insurance for you?
Rates are set by each carrier after it reviews your application, so this page doesn't list prices. These are the main factors:
- Age: rates are lower the younger you are when you apply.
- Amount and type: more coverage, or coverage that lasts longer, costs more.
- Health and tobacco use: these set your rate class with most carriers.
- The carrier: companies price the same person differently.
Because carriers price the same person differently, comparing several quotes is the most reliable way to see your options.
Choosing the amount
Start from what the coverage is for, then pick an amount whose premium you can keep paying. It's fine to start smaller and add coverage later if your budget changes.
Compare rates from several carriers in about two minutes. Free, no obligation.
How much life insurance do you need?
Add up debts, the mortgage, the years of income your family would need and future costs like school, then subtract savings and any coverage you already have.
It's fine to start smaller and add coverage later if your budget changes, as long as your health still qualifies.
Do you need a medical exam?
Skipping the exam is possible on many policies, but it is not automatic. Insurers decide case by case using the records they can check quickly.
If you are in good health, a fully underwritten policy with an exam can still be the lower-cost option. If speed or convenience matters more, or you dislike needles, a no-exam option may be worth a slightly higher price. Compare both before you decide.
How no-exam decisions are made
Many carriers use what they call accelerated underwriting. Your application answers are checked against records the insurer can pull in minutes: prescription history, the shared industry database of past applications, driving records and, with some carriers, medical claims data.
If everything lines up, you can be approved without an exam. If something needs a closer look, such as a recent diagnosis or a larger amount than the program allows, the carrier may ask for an exam or records. That isn't a decline; it's just the full process.
How to get covered in 3 steps
- Check your rate. Pick your state and answer a few quick questions about the coverage you want.
- Compare carriers. A licensed agent compares term life insurance options from several insurers and explains the trade-offs.
- Apply and get covered. Many applications take one phone call. Coverage starts once the policy is issued and the first premium is paid.
What happens after you apply: underwriting
Underwriting is how an insurance company decides whether to offer a policy and at what price. It sounds technical, but the idea is simple. The insurer wants a clear picture of your health, your habits and how much coverage you are asking for.
The application
You answer questions about your age, height and weight, tobacco use, medical history and prescriptions. Answer every question fully and honestly. A wrong answer can give the insurer grounds to contest a claim later, especially in the first two years of the policy.
Database checks
Most insurers check prescription history and a shared industry database of past applications. Many also look at your driving record. These checks are why some policies can skip a medical exam: the records answer many of the same questions.
Exam or no exam
Some policies ask for a short exam at home or work, usually a quick health check and a blood and urine sample. Others decide from your answers and records alone. A policy without an exam is faster, but it can cost more or cap how much coverage you can get.
Once the insurer finishes, it offers a rate class. Healthier applicants get better classes and lower rates. If the offer is higher than the quote, an independent agent can often take the same application to another carrier that views your history more kindly.
Term lengths at a glance
The right term ends when the need ends. This table shows common pairings.
| Term | Often used for | Things to weigh |
|---|---|---|
| 10 years | A short loan or a gap until savings catch up | Renewal later costs more |
| 20 years | Raising older children, a shorter mortgage | A popular middle ground |
| 30 years | A new 30-year mortgage, young children | Higher price, longest protection |
| Two policies | Needs that end at different times | Laddering can lower total cost |
Who term life insurance is for
Often a good fit
- Parents with children at home. Homeowners with a mortgage. Anyone whose income supports others. People who want a lot of coverage at a lower price.
Maybe not the right fit
- People who need coverage for life, such as for final costs or estate planning. People who want cash value they can use later. In those cases, permanent coverage may fit better.
