Reader’s Question

Lately, I have seen many advertisements here in Orlando that a person can get life insurance without undergoing any medical examination. What is the difference between a normal life insurance policy and one that requires no medical exam? Thank you very much.

Robert Andrews

Orlando, Florida

Hi Robert, it is good to know that you have been reading our posts here. With regards to your question, yes, there are life insurance plans like the one you mentioned – a life insurance policy with no medical exam that some life insurance companies provides. More and more providers are offering this feature as they can reach a bigger portion of the market. You must bear in mind, though, their advertisement or promotional materials may claim that they do not require a medical exam but they will still require you fill out a questionnaire pertaining to your medical history. They are questions to better understand your health and by asking questions mostly about the medical history of your family or immediate relatives, the insurance policy provider will get a pretty good indication of your health. Although they may not require a medical exam, if they sense there are some serious medical problems they will either jack-up the premiums or maybe just plain refuse to insure you. There are no guarantees.

The main difference between a life insurance with a medical exam and one that doesn’t require it, aside from the medical examination requirement, is in the life insurance payments or premiums that come with them, which you have to pay regularly – they may be higher and heavier on your pocket. You must understand that since you actually have not given them a clear medical certificate or results to rule out some health concerns, they have no way of knowing them; except the answers you have given them which may be inadequate to really assess your health situation and medical needs. Based on the knowledge they can ascertain they will incorporate some factors on conditions and premiums and offer you coverage for the security of your family if that unfortunate time comes.

Reader’s Question:

My sister has a life insurance policy and she convinced me to get one. She has the term life insurance. I’m thinking to get that too but before I purchase one, can you tell me more about term life insurance first?

Aubrey

Augusta, ME

To explain term life insurance in simple terms, this type of life insurance only covers you over a specified period of time; a lot of insurance companies offer no medical exam with this policy. Whole life insurance on the other hand, will cover a person all throughout his or her life. In addition, term life insurance does not have cash value meaning to say, if you live past the term of your policy, you or your beneficiaries will not be getting any benefits

In addition, premiums for term life insurance policy may not be fixed hence it may change from time to time. However, you still have the option to avoid this from happening. For example, you can ask for a guaranteed level premium term life insurance policy which guarantees a specified period all throughout the term of your insurance policy.

Term life insurance has many advantages. For one, it is more affordable. It offers the most affordable premiums and promises high death benefits. In addition, it’s simple. In fact, term life insurance is the simplest form of insurance policy that is available in the market today.

Moreover, it has competitive rates. Also, it is flexible. It includes options for “convertability” and “renewability.” The renewability option makes it possible for policy owners to renew their insurance policies without having to undergo medical exam. On the other hand, convertability option allows policy owners to convert their term life insurance policy to its equivalent whole life policy which has cash value.

Lastly, term life insurance policy also has its “waiver of premium,” meaning if the times comes that you are unable to pay premiums, the insurance provider will waive the payments of the premiums over a specific period of time. This feature however comes with additional charge.