About No Exam Life Insurance Policies
Do You Need a Medical Exam?
When I fly out of Charlotte’s airport, I don’t use valet parking. It’s convenient but very expensive. Instead, I leave my car in the inexpensive satellite lot and take a free shuttle to the terminal. One is easy and very expensive, the other is a little bit of trouble but less expensive.
Keep that analogy in mind when you see “No Exam” insurance being offered for sale. That means you can be issued a term life policy without having to take a medical exam to determine your state of health. Who wouldn’t want to do that? Paying for no-exam insurance is like paying for valet parking at the airport: easy but very expensive.
Here’s the kind of ad you may see online, on TV, or through the mail:
“Purchase up to $250,000 of Term Life Insurance online in about 15 minutes. No medical exam. Just answer a few health questions! Same day coverage on all approved cases. 100% online application process. Print your policy today.”
You Pay 3-5x More for No Exam Life Insurance
What they don’t tell you is that this policy can cost you 3-5 times more than one that requires a medical exam. Why? Obviously, they are taking a risk insuring you without a detailed knowledge of your health. And who pays for that risk? You do!
You will also get no-exam solicitations through the mail—I get them all the time. And I also see them on TV. Sometimes these policies will increase the rate every five years until the end of the policy. Or there will be a clause that says “no death claims will be payable” within the first two years (or longer) of the policy. In other words, the no-exam policies are easy but more expensive and often have other costly clauses.
Don’t be fooled by the ease of a no-exam policy unless you have money to burn. If you have questions, call AmericaQuote and let us evaluate the policy you’re considering.
Questions? Comments? Suggestions? 1-800-542-5530