If you’ve ever been declined for life insurance in the past, then you should consider getting a no medical exam policy, but there are still several types of plans that you can choose from. This article will explore those options and the benefits of each of them.
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Whole Life vs. Term
There are two major types of life insurance coverage that you can buy, a term insurance plan or a whole life insurance policy. Each plan has various advantages and disadvantages that you should weigh based on your specific life insurance needs.
Buying term life is simple. When you buy your plan, there is a pre-determine length of effectiveness attached to the policy. After that time has passed, you’ll no longer have life insurance. If you still want insurance after that, you’ll need to reapply for life insurance. Because these plans aren’t a permanent form of coverage, they are cheaper than other options for insurance coverage.
Whole life insurance on the other hand will be more expensive than term but will provide coverage for your entire life. You can even use whole life insurance as a bank and finance items such as vehicles, houses, education and even use for retirement.
Maybe the idea of your plan expiring scares you. Some people don’t EVER want to be without protection. If you’re one of those, then buy a whole life plan. Pay the monthly rates and you have protection.
These are the two main umbrellas of life insurance coverage. Inside of the main type, there are various subtypes of coverage that all have unique benefits. Before you buy a plan, you need to have a comprehensive understanding of the types available.
No Medical Exam Life Insurance
No exam life insurance – the name says it all. This is a great option for anyone that is in poor health or has been declined for insurance coverage in the past. There are both term and whole no medical exam plans that you can choose between.
Aside from not having to go through the exam itself, there are a few benefits of buying a no exam.
The most notable is how quickly you can be approved for insurance coverage. With a traditional insurance policy, it could take several weeks to have your application approved. If you want life insurance as fast as possible (to secure a loan, or you just want protection), no exam can help you do that.
There are a few drawbacks to these plans as well. One of those is the price. No exam coverage is riskier for the insurance company. They want to guarantee they will make money off of every policy, which means higher rates.
Whole Life No Medical Exam Policies
How can you pick between the different insurance companies on the market? They all sell similar insurance products, but whole life no medical exam plans are not nearly as common as the other types of policies.
They are not the most popular form of coverage because of the price associated with them. Not only are whole life plans more expensive than term plans, but no medical exams are going to be more expensive as well.
In most cases, getting a traditional whole life policy is more affordable and offers better protection. A no medical exam policy should always be considered a last resort for coverage because of the price.
If you’re looking to find the best whole life no medical exam plan, it can be a difficult search because of the limited number of companies that offer these plans. If you’re set on getting one of these types of plans, the best way is to go through an independent agency. We know the companies that offer whole life no exam plans and which ones have the lowest rates.
If you didn’t know, there are limits on no exam insurance. One of those is how much coverage you can buy. Each company has various restrictions on their plans. Some carriers have higher limits, most are going to be around $500,000.
This might seem like a lot of insurance, but it might not be high enough protection for some families. Don’t ever buy a no exam policy, or an insurance plan of any kind before you do the math to figure out how much life insurance you need.
Finding this number is easy. You can contact us and we can walk you through the math by asking some key questions, or you can do it yourself.
How much debt will your life insurance need to pay off? Do you have a mortgage and student loans? Are you mostly debt free? Calculating and finding all of your debt is the first step.
Do you have family members have enough income if they no longer had your paycheck? Aside from paying off debts, your plan needs to take the place of your monthly income.
Those two numbers (your debts and your salary) equal how much life insurance you need. Add them together, and there you go. Will no exam coverage get you enough protection?
Ready to Get Started?
If you are confused by no exam life insurance, we can clear up the confusion. There are two ways to get in touch with us. You can either use our website or you can give us a phone call at 800-712-8519. Because life insurance is such an important financial tool, we highly recommend you go ahead and call us today.