Be Careful With No Medical Exam Life Insurance
Getting life insurance can be very similar to getting a loan in that you are checked out very thoroughly to see if you are a financial risk. In the case of life insurance, this means you have to take a medical exam. The results of this exam determine your monthly premiums. You can even be denied life insurance if you are considered to be too ill. But you still want your family to be protected if you die and they loose a breadwinner. So, no medical exam life insurance sounds great.
Hold On, Partner
All insurance companies are just that - companies. They need to make a profit in order to stay in business. In the insurance trade, this means rarely ever having to pay up, which can happen sometimes. If a life insurance company had to pay up for every policy holder they had, then they would soon be out of money. This is the same for no medical exam life insurance policies.
Read The Fine Print
When you look closely at what no medical exam life insurance policies cover compared to what a usual life insurance policy covers, you will find vast differences. You can never rely entirely on no medical exam life insurance policies for all of your life insurance needs. At best, no medical exam life insurance policies are great supplemental policies, but should not be your main life insurance policy.
Often, no medical exam insurance policies only pay out a fraction of what a usual life insurance policy would. They are often found advertised in newspapers, magazines and on line. Sometimes a fraternal society or a business organization might offer these no medical exam insurance policies, as well.
Like other life insurance policies, these policies will usually not pay out during the first year or two of your getting it. Often, they will have the legal option to change the conditions of when they would pay up - up to two years from your first payment. They can legally change your policy's conditions if they feel you were lying to them about any medical condition you know you had.
Do You Even Need It?
Not everyone needs life insurance, whether it is a standard type or a no medical exam insurance policy. If you live by yourself in an apartment, you really don't need life insurance. But if you have a business, then you need to life insurance to help pay the businesses bills. If you have a family dependant on your salary, then you need life insurance.
