Life Insurance with No Exams

What You Were Not Aware Of About Life Insurance with No Exams

What results

As a result, the premiums are often much higher than other policies. The advantages of this are that anyone can get an insurance policy. These types of policy should not be confused with “quick issue” policies, which will ask medical history questions of the potential policy holder, but will not require an actual medical exam. Before embarking on one of these types of policy, though, it is important to know how they work.

High premiums might mean lower payout

Because the premiums can be quite high with guaranteed issue policies, as far as life insurance with no exams policies goes, it can often be the case that the policy holder can end up paying more in premiums than the actual cash-value of the policy when it is redeemed. When this is taken into account, suddenly the quick fix of having a life insurance policy with no medical exams doesn’t seem so profitable or convenient.

No medical means “no benefit” in cost

Because guaranteed issue policy insurers don’t ask for medical exams, the costs, as we have seen, are quiet high. The problem with this is that the cost of the policy remains the same, whether the person buying the insurance is in the peak of their health, or whether they are suffering from a grave, and possibly terminal, illness. So while the “life insurance with no exams” option might be attractive to some, it may not be cost-effective or attractive to others.

An added disadvantage is that a lot of life insurance policies with no medicals are geared towards paying more for funeral costs than for providing for next of kin, etc. For this reason, a lot of guaranteed issue policies have a face value of no more than $15,000 to $20,000. This will often make the high premiums of these life insurance polices with no exams less attractive for those who are looking for more stable and beneficial insurance.