Mike’s Life Insurance Advice

Dear Mike,

I was just about to buy term life insurance and started wondering why it is so much less expensive that a comparable whole life policy. Do the insurance companies use different mortality tables for term llife than permanent life?

Thanks.

Sincerely,

Ben J.

Hi Jessica,

On the surface it would seem that a life insurance company should require you to get a physical exam before they offer you coverage. However, with increased competition, mainly due to the Internet, “no medical exam life insurance” is available.

And if you apply for this type of cover you will not have to go to a doctor to get a medical exam.

But you are asking a very valid question. Why would life insurance companies ask you to complete a physical examination as part of the regimen you need to go through if you want to qualify for a term life insurance policy?

When you look at it from the insurance company’s perspective the answer is actually quite obvious. In order for the insurance company to rate you and charge premiums that are in line with your actual health status they will need some sort of verification. And a medical exam will do exactly that.

Because of this, having a medical exam can often save you money for your life insurance policy.

But if you don’t want to go to the doctor but do want a more convenient approach that could cost you a bit more money then you should investigate no medical exam life insurance.

Often, just by answering a few health related questions with a simple “yes” or “no” you will be able to get up to $50,000 in insurance coverage. The entire process can be handled through the mail and not only won’t you have to get a medical exam, you won’t have to fill out any long forms as well.

Getting life insurance without having to take a medical exam is a hassle free way of getting coverage that could pay for your mortgage, your unpaid credit cards, your car loans, and more should you pass away. And filling out simple form eliminates having to go through the drudgery taking hours to fill out a lot of unnecessary paperwork.

This type of policy is usually more expensive because the insurance company assumes additional risk by relying on you to provide information instead of getting documented facts from a medical professional.

It actually makes a lot of sense that they would charge higher premiums for no medical exam life insurance than they would charge if you underwent a complete physical exam. None-the-less, online insurance coverage without the need for a medical is available for rather affordable premiums.

Some companies offer a $1 trial and then adjust their rates based on your age – and then they guarantee those rates for the life of the policy. Other online insurance companies offer rates for as little as $3.49 per month for this kind of insurance.

The amount of no medical life insurance coverage you can purchase varies between $5,000 and $50,000.

Mike

Dear Mike,

I’ve been reading a lot lately about no medical exam life insurance policies and was wondering why an insurance company would even offer such a product. Are these things real? And if they are, would I really be able to get an insurance policy without having to spend money going to the doctor for a medical exam?

Jessica A.

Hi Wendell,

Congratulations on your anniversary and I’m glad that you’re considering buying life insurance. You’re asking a very good question.

Up until recently anyone who wanted to get a life insurance policy had to go through a predetermined series of steps that included getting a physical examination. The examination’s purpose was to prove that the person who wanted to invest in the policy was in good enough health to be insured. That was because, as smart business people, insurance providers didn’t want to take any unnecessary risks.

If you weren’t in good health it would be more likely they would have to pay your insurance benefits before the company would turn a profit, so, understandably, they wouldn’t insure you.

But, since the Internet became an everyday fact of life, you can get almost any type of insurance policy that you want online. And, with increased competition, a number of plans that were not available before, such as life insurance no exam policies, are now available. This insurance policy does not require that you have any physical exam whatsoever.

Keep in mind that most of the no exam life insurance policies are term insurance policies. This means that they are only in force for a specific amount of time. And when that time has elapsed, depending on the policy, you might or might not have the option to renew the policy. If you are able to renew it, the premium would probably be higher.

If you decide to invest in a life insurance no exam police make sure to get a guaranteed renewable plan. This will make sure that you will be able to stay insured once the original term insurance policy ends, even if your health should change in the interim. But you have to figure that the rates will increase and it’s also possible that there may be additional stipulations.

Even though you will be buying life insurance – no exam – you may still need to give a blood or saliva sample. However, beyond that, you will not have to see your doctor.

The nature of the policy precludes any additional stress in your life as well as the additional cost of having to take a physical exam. And you will not have to deal with any long waiting period while the insurance company decides if you are a good enough risk for them to insure.

In general the younger you are the easier it is to get a no exam life insurance policy. Once you have turned forty years of age there is a good chance that you will be asked to pass an exam that may include a basic physical, a urine test, blood work, and perhaps a stress test.

Mike

Hi Mike,

My wife and I just celebrated our second anniversary. We’re in our early twenties and have not purchased any life insurance up until this point in time. We’re in good health but neither of us has the time or the desire to take any physical exams in order to qualify for coverage.

Are there any policies available that will meet our needs?

Thanks.

Wendell C.