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. There are also a couple of drawbacks as well though, first and foremost you will pay more in premium cost's.
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.A few years ago I bought a no exam policy due to some Arthritis issues I was having and the policy fit my immediate needs at the time.
Talk to your life insurance broker or agent and make sure they know exactly what you need the policy for in your planning. Also get quotes from a number of different top carriers for comparison. 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.Waiting for a couple of months and applying for a fully underwritten plan could save you around thirty to forty percent in premiums.
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. Premiums are high and the death benefit is graded, meaning the longer you live you obtain a higher death benefit.
No comments:
Post a Comment