Every potential insurance customer will, at some point, be faced with a very important decision: should they buy regular life insurance or a no exam insurance policy? It’s crucial you get your facts straight and make an informed decision when opting for an insurance package. Why? Because they come at different prices and their features can vary greatly. It’s up to you to gather information and understand your needs. An insurance agent will definitely help at some point, but knowing your insurance ABC may prove to be quite useful in a lot of situations.
Life insurance is a good financial safety tool. It’s meant to protect against loss of any kind and to provide for your loved ones in case you become unable to do so. Insurance comes in two standard forms:
- Whole life insurance, which offers permanent and unlimited protection
- Term life insurance, which protects the insured for a certain amount of time (usually up to 30 years)
Skipping the medical examination is a feature only available for term insurance. The exam is of utter importance in most cases. It gives the provider the necessary information about your medical condition and health history. Afterwards, your rated will be calculated based on the results and on various other factors, such as age and tobacco usage.
Without a medical exam, the provider will undertake high amounts of risk. In order to protect himself against potential financial loss (some no exam policies can rise up to 300.000$), the premiums will be significantly higher than those of standard policies. It’s a safety measure for the insurance company.
Given the higher price, it’s very important you decide if you actually NEED no exam life insurance. Are you a hypochondriac who’s afraid of getting a medical check-up? Make sure it’s worth it, as this trifle (if you excuse my saying so) may cost you thousands of dollars. No exam life insurance is generally a good option if you:
- Need insurance fast. And by fast, I mean a couple of days or so. Standard insurance may take up to six weeks to be issued, while no exam policies require no longer than a few days. Make sure you don’t have to wait for a couple of years before the protection kicks in, though.
- Can’t find coverage elsewhere. If you have a preexisting medical condition, chances are you won’t be granted standard insurance. A no exam policy can be your safety net in such a case.
Before making any decision, make sure you book an appointment with a licensed, experienced insurance agent and have him explain to you all the obscure points you encountered.