Term Life Insurance No Exam

By | January 4, 2009

No Exam Term Life Policies are life insurance policies where you do not have to have a Para Medical exam completed for underwriting.The process is you will fill out an application and answer fairly typical health questions.

The underwriters will base their decision off your application as well as checking the MIB (medical information bureau) for any adverse history of insurance underwriting.  The benefits of purchasing this type of policy are almost immediate underwriting and issue of the policy and obviously no underwriting.The bad part is or course that you in most cases will pay quite a bit more in premiums for the coverage.

Advantage’s vs. Dis-Advantage of No Exam Term Life Policies

Advantages:

  • Policy could be issued in under half an hour
  • No Para Medical Exam is needed for completion
  • Great if you have slight health impairments (like arthritis)
  • If you have MIB hits that other insurance companies have submitted you’ll know quickly

Disadvantages:

  • Premiums will be higher than fully underwritten policy
  • Face Amounts are limited, some carriers will go as high as $300,000
  • You don’t get a free exam paid by the life insurance carrier

These are just a few of the advantage and disadvantages of these types of policies.  Personally I purchased one of these plans a number of years ago and it fit my needs at that time quite nicely.

Talk to your life insurance broker or agent and make sure they know exactly what you need the policy for in your planning.To make sure you do your due diligence get quote comparison’s from multiple carriers.  Get quotes for a fully underwritten policy and then get the no exam term life insurance policy quotes.

Compare the premiums between both plans and if the convenience of getting an instant issue life insurance policy put in force out weighs a fully underwritten plan then maybe it’s right for you.  But if you can wait four to eight weeks to save on paying up to 30-40% more than a fully underwritten plan then I suggest you wait.

The cousin policy to no exam life insurance is the guaranteed issue life insurance policy or sometimes referred to as graded premium life.  This type of plan you would seek out if you have serious health issues and have been declined by the traditional life insurance carriers.You will pay much more in premiums because it’s guaranteed coverage and the longer you live the higher amount of death benefit you receive hence (graded benefit).

 

 

 




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