Life Insurance with No Medical Exam – The Pros and Cons
Reader’s Question:
Should I listen to my friend and go with a no exam life insurance policy, or should I go with an agent who is telling me that I will be better of getting a policy with a medical screening? I don’t want to make a big fuss about getting life insurance but I do want to get it right the first time.
Blaise
Miami, FL
You’ve raised an interesting question. Life insurance with no medical exam policies has their uses, but that doesn’t meant this is the type of coverage that everyone should be getting. It would be very important to consider the following to see if a no medical exam life policy is the best for you:
When to Think Twice About a No Exam Life Policy
Are you in excellent physical condition for your age? Are you relatively young and in general good health? If you are budget conscious then it would be more cost-effective to go with a life policy that requires a medical checkup. You can leverage your good health and longevity to get affordable life insurance premiums that you would otherwise not get for buying a no exam life policy. By not asking a customer to undergo a medical exam, the insurer is taking in a bigger financial risk (since the insurer has no idea about the health of a customer). The bigger this risk is the higher the premiums become.
When to Consider a No Exam Life Insurance
If you have been denied coverage by other life insurers or are slammed with high premiums due to a medical condition, disease, or because of a risky lifestyle, then a life insurance with no medical exam will be your best choice. In fact, with some people it may be the ONLY choice to get life coverage. If you will go with a no exam policy, do make sure that you shop around and compare rates. Prices vary greatly across many insurers and you may still get good rates for comparing offers. This can easily be done by comparing free life insurance quotes online.