The short answer
- "No exam" is not one product. There are three types with very different prices.
- If you are healthy, accelerated underwriting can cost the same as a full exam policy.
- Simplified issue costs 20 to 50 percent more. Guaranteed issue can be double or triple.
- You can still be declined on the first two - only guaranteed issue accepts everyone.
The three types, and why the difference matters
Most people searching for "no exam" assume it means one thing. It does not, and the gap between the cheapest and dearest version is enormous.
1. Accelerated underwriting
The insurer skips the exam but still underwrites you properly - using prescription history, motor vehicle records, claims databases and predictive models instead of blood and urine. If you are young-ish and healthy, you can be approved in minutes to a few days at standard or preferred rates. This is the best-kept secret in the category: same price, none of the hassle.
Catch: it is generally offered up to about age 60 and up to certain coverage limits. Beyond those, the insurer wants the exam.
2. Simplified issue
A short health questionnaire - typically 8 to 15 yes/no questions - plus database checks. No exam. Decision usually in days. Most final expense and burial policies work this way.
You pay 20 to 50 percent more than fully underwritten because the insurer is accepting more unknown risk. You can still be declined if you answer yes to a knockout question.
3. Guaranteed issue
No health questions at all. Acceptance is guaranteed if you are within the age band. The trade-offs are steep: two to three times the cost, low coverage caps (often $25,000 max), and a graded death benefit - die of natural causes in the first two to three years and your family gets premiums back plus interest, not the full amount.
| Type | Health questions | Speed | Cost |
|---|---|---|---|
| Accelerated | Full application, no exam | Minutes to days | Same as full |
| Simplified issue | 8 to 15 questions | Days | +20 to 50 percent |
| Guaranteed issue | None | Immediate | 2 to 3 times |
The mistake that costs the most
People who would have sailed through accelerated underwriting get sold guaranteed issue because the advert said "no health questions". They then pay triple, cap out at $25,000, and sit through a three-year waiting period they never needed. Always apply top-down: accelerated first, simplified second, guaranteed issue only after a decline.
What it actually costs
Monthly premium, $250,000 of 20-year term, healthy 45-year-old non-smoker:
| Route | Female | Male |
|---|---|---|
| Fully underwritten | $21 - $30 | $26 - $37 |
| Accelerated (no exam) | $22 - $33 | $27 - $41 |
| Simplified issue | $31 - $46 | $39 - $58 |
Guaranteed issue is not shown because it is not sold at $250,000 - it caps far lower. See burial insurance rates for small-face pricing.
When to take the exam anyway
Take it if: you are in genuinely good health, want more than about $500,000 of cover, are over 60, or simply have a few spare weeks. Good numbers on a blood panel are worth real money - they can move you into preferred tiers that no-exam routes rarely offer.
Skip it if: you have conditions that would be penalised, you need cover in place before a deadline such as a loan closing or a divorce decree, or you have tried before and the exam is what stopped you finishing.
One honest point: some people avoid the exam because they are afraid of what it will find. That is understandable, but an undiagnosed condition does not go away by not testing - and insurers check prescription databases regardless.
Common questions
How much more does it cost?+
Accelerated underwriting often costs the same as full underwriting if you are healthy. Simplified issue runs 20 to 50 percent more, and guaranteed issue can be two to three times as much for the same benefit.
How fast can I be covered?+
Accelerated underwriting can approve in minutes to a few days. Simplified issue usually takes a few days. A fully underwritten policy with an exam typically takes two to six weeks.
Can I still be declined?+
Yes, on accelerated and simplified issue - both still ask health questions and check prescription and claims databases. Only guaranteed issue cannot decline you, and it carries a two to three year graded benefit period.
Is it worth it?+
Worth it if you have conditions that would be penalised, need cover fast, or cannot practically schedule an exam. If you are healthy with a few weeks to spare, the exam usually earns a better rate.