Is no-exam life insurance worth it?

If you plan to purchase a life insurance policy, you should know that insurance companies often want you to get checked out by a medical professional prior to underwriting your policy. But if the thought of submitting to a medical exam stresses you out, you can also opt for a no-exam policy that lets you skip the check-up.

Several of CNBC Select’s picks for best life insurance offer no-exam coverage. Mutual of Omaha, one of our top picks for seniors, offers whole life insurance policies without a medical exam. And the top pick for customer satisfaction, State Farm, also offers coverage without a medical exam.

However, you’ll likely pay a price in higher premiums if you forgo the exam when picking your life insurance policy. Below, we take a look at why life insurance companies charge more for no-exam policies and help you decide whether it’s worth it for your situation.

Medical exams are used in underwriting, which is the process of deciding how much a person will pay in premiums based on their risk profile. These exams usually involve measuring your height, weight, and blood pressure. They also likely involve a blood and urine test.

If the exam finds you in relatively good health, you’ll often pay less in premiums because the insurance company sees you as less of a risk. But if you don’t submit to a medical exam, you’re depriving the company of information it would use to determine its pricing. “They’re going to go ahead and assume the worst, they’re going to assume that you want to hold some information back from them,” says Michael Giusti, senior writer and analyst at Insurancequotes.com. “They’re going to price the policy higher.”

People with a medical condition that might disqualify them from a policy stand to gain the most from this type of insurance. While the no-exam option will likely offer a smaller amount of coverage compared to a policy requiring an exam, it’s certainly better than no coverage at all.

No-exam insurance also appeals to people who feel a medical exam isn’t worth the disruption to their routines and would rather pay the higher premiums. Although the exams usually take less than an hour and the medical professional can even come to your house, you might have to skip going to the gym in the morning, or you may have to fast on the day of the exam. “Time…