Term Life Insurance Q&A
- Why should I choose BeyondQuotes?
- Which companies do we represent?
- Is BeyondQuotes licensed where I live?
- Is my information confidential?
- Do you only offer rate quotes?
- How do we choose which companies to represent?
- How much Term Life Insurance do I need?
- What are "level" policies?
- What should be the term length?
- Is it worth insuring my spouse on my policy?
- Can you explain the difference between Term and Whole Life plans?
- I suffer form a pre-existing condition. Can I still be insured?
Applying for a Policy
- How do I apply for Term Life Insurance?
- How do I find the best value plan for my needs?
- What is the waiting period between applying and coverage?
No Exam Life Insurance
What Is No Exam Life Insurance?
Buying a life insurance policy can be a very lengthy and frustrating process. With most conventional life insurance policies the underwriting process is exhaustive. Your health history and lifestyle history are scrutinized completely, and with most conventional life insurance policies you have to submit your medical records, as well as having a complete physical performed by your doctor.
With some people who are not qualified for conventional life insurance because of poor medical condition, no exam life insurance offers you an option that was not previously available. If you are in the position of having to pay huge premiums because of your health status, life insurance with no exam may be the best choice for you.
Many people are very private and do not want to go through all the hassle and revealing of personal information, and because of this, end up not buying any life insurance at all. Others may have risky lifestyles or poor health and are having a difficult obtaining a traditional life insurance policy. With no exam life insurance there is also no lengthy wait for your policy to be approved and to be put in to effect.
While “no exam” life insurance does not make you take a physical exam, there are still a lot of questions the life insurance company will ask you concerning your medical history and lifestyle. They are counting on you to answer questions about your medical history honestly. Many people are tempted to be not completely forthcoming or outright lying on their application. Avoid this temptation.
If the insurance company finds out that you were not honest on your application, or if you had a previous medical condition that you did not disclose your policy may be cancelled. If after your death, it is found that you had a preexisting medical problem that you did not tell them about; your heirs may end up with nothing, as your policy can be voided. In addition, you still have to give the insurance company access to your medical records, so it is not that difficult for them to find out if you were not honest in your application. If you do choose a life insurance policy that is labeled as no exam life insurance, make sure that you can be completely forthcoming about your health history. If you don't, it may cost you or your heirs thousands of dollars.
One of the drawbacks of no exam life insurance is that it is usually much more expensive than conventional life insurance. You are paying for the right to keep a certain amount of your privacy. Your premiums will be much higher, and the benefit will be much lower. There is a cap on the amount of money your heirs can collect upon your death. Most insurance companies advertise that their benefit cap can be as much as $500,000. However, what they don't tell you is that almost no one qualifies for that much. Obviously, the greater the amount of the pay off, the greater your premiums will be.
Most people who are shopping for life insurance may be better off applying for a conventional life insurance policy. The best rates for no exam life insurance are for those who report good health and lifestyle conditions. If you have both of these, you can probably qualify for a life insurance policy that is much less expensive, and provide a bigger death benefit. While the no exam life insurance policy is much easier to obtain and is much less invasive, the premiums are much lower and your stubbornness about not wanting to go to the doctor may end up costing you more for your premiums, and cost your heirs by getting a lower benefit from your death.
Although with no exam life insurance you are not mandated to have a physical exam that does not mean that you don’t have to disclose any information. You will be given an extensive application to complete. After submitting your application you will usually have a phone interview by a representative of the insurance company to follow up on any questions they have about your application.
No exam life insurance can be a wise choice for those who cannot qualify for traditional life insurance; however, it is wise not to purchase no exam life insurance unless you have no other choice.