subject: No Medical Term Life Insurance: How To Determine Whether You Qualify [print this page] No medical life insurance is a popular alternative to traditional policies. No medical term life insurance is economical and practical alone or to supplement another policy. Many people who don't qualify for universal or other policies, in fact, can still qualify for this type.
Regular policies, such as universal (also known as "permanent" or "whole life") insurance require the purchaser to undergo a health exam. The exam may be a simple submission of a urine sample, or may be as comprehensive as a full physical. The nature of the check-up is usually dependent upon the amount of the benefit desired and the company selling the policy.
These policies are usually more costly because the risk to the company is greater. Universal policies are designed to stay with the buyer for his full lifetime. This, presumably, means that it remains active for anywhere from twenty to forty years on average.
Companies that sell this type of policy, therefore, can only feasibly guarantee coverage for consumers who are considered "low risk". Buyers who are younger (in their 20's or 30's), don't smoke or use drugs and have no chronic health conditions are ideal candidates for these policies. Good health must typically be confirmed by a health exam before a policy is granted.
Consumers who fall outside of these parameters, even by a single factor, may have trouble obtaining universal coverage. No medical term life insurance is a suitable alternative for people who are older, have minor or ongoing health issues or who smoke.
This type is what its name implies: it can be obtained without having to undergo a doctor's exam. Instead, companies who provide it instead have a list of health questions relating to high-risk illnesses and other factors.
Potential buyers simply answer a few questions in order to determine whether they qualify. Those who do can usually activate their policies within a few days to a couple of weeks.
Term life insurance can be sold to higher-risk customers for two major reasons:
1) It is "short term". Universal policies, as already noted, are meant to stay with the purchaser until they die. The longer the buyer pays into it, the more interest that is generated for the granting company. The company, in other words, makes more money from it.
Term life insurance, on the other hand, is held for shorter periods of time. These policies are generally granted for periods of five, ten, fifteen or twenty years.
The benefit to the buyer, aside from not having to undergo a health check-up, is lower monthly premiums. The major benefit to the granting company is the ability to reassess the customer's risk factors at the end of the valid term.
2) Benefit payouts are lower. No medical term life insurance benefits are typically capped at 500,000 dollars. Consumers can choose to pay for a lower benefit amount too, if desired. 100,000 and 200,000 dollar policies are typical in the industry.
Many consumers, who might otherwise be ineligible for death benefits, often qualify for no medical term life insurance. These policies may be purchased online. Interested buyers may obtain coverage within hours to days of their initial application.
Instead of a health exam, the no medical life insurance applicant answers questions regarding health and lifestyle directly online. A risk calculator determines if the applicant is eligible.
It also determines the maximum benefit payout that they can purchase. No medical term life insurance is simple yet may provide substantially for a consumer's family in the event of death.
by: Brian Greenberg
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