Term Life Insurance without Medical Exam – Should You Go With It?
Reader’s Question:
Why do I need to take a medical test when applying for term life insurance? Why go through with it when other life insurance companies are offering coverage without the medical exam?
Brent
Gainesville, FL
That is a good question. With all the companies offering term life insurance without medical exam these days, why go through all that hassle right? Now before you go ahead and buy a no exam policy it would be advisable to know first why such a policy was even invented. It is also wise to know first if this kind of policy is advantageous to you or not.
First, no exam life insurance plans have been created to cater to those who wish to purchase coverage quickly and easily. The Internet has made this demand even bigger. However, since the insurers have no idea about the applicant’s state of health, they will charge higher life insurance premiums to compensate for any unforeseen risks that a customer might represent in the future.
This can be a good thing or a bad thing to the prospective policyholder. If the applicant has a serious physical disease or medical condition, participates in extremely dangerous activities or hobbies, or has an occupation that exposes them to hazardous places or conditions, then a life insurance with no exam plan is advantageous. Usually these individuals will find it next to impossible to get normal life insurance coverage. Even if they did the normal life insurance rates would be astronomical! A no exam policy can prove more cost-effective in the long run.
However, if you are relatively young and is in excellent physical condition then by all means let your insurer know about it by taking that medical exam. There is no reason to pay higher rates unnecessarily.