Reader’s Question:

My life insurance policy is almost up and I’m looking to get coverage again, but this time with a different provider. I’m already 50 years old (but still reasonably healthy) however, should I buy life insurance with no medical exam?

Dallas

Jersey City, NJ

No-exam life policies are a relatively new phenomenon. It was created to address the demand of buying life insurance coverage over the Internet in a quick manner, utilizing simplified underwriting processes. However, what you should know is that life insurance with no medical exam is not for everyone.

A life insurance with no medical exam can work for you or against you. Due to the simplified underwriting process the level of risk that you represent towards the life insurer is not accurately determined. This is good news to people who, due to certain medical conditions or other factors, prevents them from getting life insurance (or if they do, prices are astonishingly through the roof). For many individuals out there, especially seniors, a no exam life insurance plan may be their ONLY option!

However, if you are in relatively excellent state of health and is still young, you would end up spending more on premiums (unnecessarily) for going with a life insurance with no medical exam. By default, the risk categories assigned to policyholders of this kind of policy are set at high.

So should you go with this kind of life insurance? Like what was mentioned above, if you have certain physical or medical conditions preventing you from getting life insurance, then no exam policies are your best option. If, on the other hand, you have no reason to not push through with the medical test then by all means take the exam. There’s no reason to throw good money away unnecessarily.

Tags: life insurance with no medical exam