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No Medical Life Insurance – What does it mean?
You see the ads on television offering all kinds of easy to buy no medical life insurance policies and it all sounds cheap and easy to buy. But is no medical life insurance the answer?
First of all – non-medical life insurance does not mean no medical questions; it means that you do not have to go through a paramedical or offer a blood sample to apply. It also does not mean it is the cheapest, in fact it is not.
There are many kinds of life insurance.
The most economical and least expensive are the ones you answer all the questions, in some cases, a paramed and a blood and urine, depending on the age of the person and the amount, other things such as a full doctor’s medical, ECG, and others may be required. If you qualify after all of that you will purchase the policy at the best rate.
But not everyone qualifies for life insurance in the traditional way, hence the popularity of the no medical policies.
Each company has their own set of questions to determine whether you qualify and basically the more questions you answer no to, the cheaper the premium. Some life insurance applications ask only three questions, but obviously are the most expensive to purchase. They are also limited to the amount you purchase. In most cases the maximum is 200,000 – 250,000 depending on the carrier so if you require more than that you may need to go to more than one carrier.
No medical life insurance is beneficial of course for people that do indeed have medical issues that may disqualify them from traditional plans or that have been denied in the past or for those that are afraid that a blood test may disclose something they might have. It is also for the individual looking for insurance quickly. Most of these can be issued within a couple of days.
If you choose the non-medical route, make sure you read the contract carefully.
- Is it automatically renewed after the term?
- Is the premium guaranteed?
- Is there a diferral period, i.e. Does it pay on death immediately or must you own the contract for a certain number of years before it pays out?
- What other options or benefits does it have?
For the right people that need life insurance and cannot qualify otherwise non-medical can be the way to go and offers an alternate to not having any at all, but you need to be aware of your other options and the options or all of the plans.
For more information on non-medical life insurance, call me today.
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