No Exam Life Insurance Vs Exam Required Life Insurance

So you heard about no exam life insurance and for a reason or another, you decide that you will request quotes for these plans. The quotes come in and behold, the price is higher than you expected or just higher than you had been previously quoted from another company. The question is, as with anything that you purchase, is this really the plan that you need? If not, then paying more is not your only problem!

Probably the two main reasons for selecting no exam life insurance is speed of underwriting and avoiding negative results from an exam. Other than that, most people should elect to apply for an exam required life insurance. In other words, if you need a fast response with your life insurance application, as in the case of a business loan, then the no exam plans may be best.

If you are healthy, not in a hurry and are not afraid of needles, then we highly recommend that you go for the exam plan. Your final rates may be as much as half the rates of a no exam plan. If you are afraid that maybe some bad news may result from the exam plan, which rarely happens, particularly if you get regular check ups, then you may want to secure a no exam life insurance plan first then try to get a lower priced exam required plan.

If you are not healthy, doing a no exam plan is rarely a good idea, unless again you know you can qualify for a no exam plan and are in a hurry. Keep in mind that, if you have health issues, you are more likely to be declined for a no exam plan than for a regular exam required plan. Many individuals with health issues seem to think that applying for a no exam plan means not having to answer health questions. That is very far from the truth. As a matter of fact, no exam life insurance plans, whether its term life, whole life or universal life, will also check MIB, pharmacy reports and other reports as part of the underwriting process. We know of only one company that has no health questions and not only are the rates very high, but the full coverage is delayed three years. For people with health issues, we recommend that you locate an agent that is familiar with life insurance for people with past or present health issues and get yourself a well priced, quality life insurance plan. If you still want to do a no exam plan, select a company that offers "rated" no exam polices or "graded" life insurance policies (ask your agent for more details or see our other articles on that subject).

One more thing we have come across. What if you are a tobacco user and you want to avoid the exam so that you can get non-tobacco rates? That is a very bad idea! The bottom line is not you but the people that you care about. The people that the life insurance is being taken out for. If you do not tell the truth on a life insurance application, there is a very good chance that, upon your death, the claim will be denied or benefits will be modified (particularly in the first two years of the policy).

Bottom is, find a good agent that will have a good knowledge of no exam and exam required life insurance plans, be honest, ask a lot of questions, read your approved policy once you receive it and ask more questions after you have received your insurance policy. Be well.