Is Whole Life Insurance no Medical Exam Right for You?
Whole life insurance, no medical exam required may sound too good to be true, and although there are a number of excellent companies who do offer these types of policies they may well come with exclusions that you need to be aware of. We have all seen the adverts on television which promise whole life insurance coverage without the need for a medical exam at low monthly premiums, but these may well have been modified in some way.
This means that a very specific set of criteria must be met in order for the full payment to be issued after death. These modifications could mean that beneficiaries receive a much reduced benefit, or may even receive nothing at all in the event of you passing away within a specified time period of the policy being issued. This can be two or more years in the case of natural death, and is the whole reason these policies are offered without the need for cheap family health insurance.
The good news is that you would probably be covered in the event of accidental death from the moment the policy is issued. This means that you can die in a car accident safe in the knowledge that your beneficiaries will receive a payout, but will not be covered if you die of a heart attack or stroke. There are normally exclusions on dangerous recreational activities such as skydiving or scuba-diving. Whole life insurance no exam is also likely to be more expensive than insurance where a physical examination is required, and this is especially true for men.
However there is definitely a real need for this type of insurance as it can be extremely beneficial to those who run the risk of being refused life insurance where a policy takes into account existing health conditions. People who have smoked throughout their lives or who have a history of heart disease or cancer can still get coverage regardless of the current health. This means so long as they pass away within the specified period of the policy their dependents will get a lump sum payment. Whole life policies also have a cash value which is quite different from term life plans where the cash value expires.
Although the life insurance no medical exam is more expensive to take out, it may be the only way some people can get insurance cover, and is a good idea for anyone worried about leaving dependents in financial trouble.
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