"The decision is binary, yes or no, based on the price we originally offered," says Hug. "Between 50 and 70 percent are approved and no paper is involved."Hug points out that Prudential is governed by federal privacy laws and takes in much of the same information before it issues a traditional policy. "Most people are honest," he observes. The cost for a "virtual exam" life insurance policy is slightly higher than a normal term policy. But analysts say it's a price many people would be willing to pay for the convenience of a quickly issued policy that doesn't involve lab tests. The difference is about $3 a month for a younger person.