What do you understand by the term “no physical exam” in the context of insurance policy?

The term “no physical exam” is used in health insurance and life insurance policies. Some insurance companies use this term to increase their policyholders or customers. These insurance companies provide freedom to the policyholders to take policy and skip the mandatory physical test by certain life insurance companies. The insurance companies which provide this facility are more expensive, and the policyholders have to pay a higher premium on their policy.