In what instance might a 'no medical exam' policy be less advantageous for an applicant?

A 'no medical exam' policy may be less advantageous for an applicant in scenarios where this type of policy leads to higher premiums or potentially lower coverage compared to a standard policy that requires a medical examination. These policies are typically marketed for their convenience and speedy approval, but in doing so, they may not offer the most favorable terms for applicants who would otherwise qualify for better rates or higher coverage amounts based on their health status.

When an applicant chooses a no medical exam option, the insurer takes on more risk due to the lack of detailed health information. As a consequence, the premiums tend to be higher to account for this increased risk. Additionally, coverage limits may be lower because insurers often set stricter conditions for benefits in these types of policies, as they rely on less comprehensive health data.

In contrast, an applicant who is in excellent health may benefit more from undergoing a medical exam, as it can reveal favorable health metrics that could lead to lower premiums and higher coverage limits. Therefore, while no medical exam policies offer ease of access, they may not always provide the best financial advantage compared to traditional underwriting processes.