No Medical Exam Term Life Insurance: How Does It Work?

People choose to get life insurance for a variety of reasons. They want to make sure that the family will be able to cover the funeral costs and it will benefit of a stable income replacement for several years. Unfortunately not every individual is eligible for life insurance policies.

financial insurancel-advisorThe rates are based on actuarial tables and on the results of medical exams.  Without blood, urine and other tests, most companies will not negotiate. However, some insurance companies sell no medical exam policies, which provide term insurance without medical and permanent protection.

Obtaining no exam life insurance is a good option for older citizens or persons with health problems. In this article we will tell you more about no medical exam term life insurance and how does it work.

First you must know what no medical exam life insurance means.  You will not have to undergo medical examinations which include blood tests, urine tests, EKG, X-rays.  As a result, the underwriting is simplified and greatly accelerated. It takes several hours for the company to review your case and give you an answer.  However, you will have to answer to several basic questions about your health, some habits, like drinking and smoking and medical problems. This will help the company understand the risk level and determine the price of premiums.

No medical exam term life insurance is set for a period of time, such as 10 or 20 years, but some companies offer guaranteed level premium period of even 30 years.  Policies renew yearly and the premiums increase according with a premium schedule. Some companies accept the conversion of term life policies into permanent plans, but only if the person is no older than 65 years old and only in the first 10 policy years.

Term life policies accept several insurance riders like:  accelerated death benefit, accidental death benefits, dependent children rider, waiver of premiums rider. Most companies have the maximum coverage amounts situated between $300.000 and $400.000.

Our website can tell you more about this type of life insurance. Plus, we work with reliable insurers and we offer free quotes. Visit us!