If you have shopped for insurance, you have probably come across plans considered no medical exam life insurance. Maybe you have wondered the advantage, disadvantage and the costs of buying such policies.
Life insurance is often an intimidating and complicated subject, but by asking the right questions you stand a better chance of understanding what you are getting yourself into.
You will discover what to expect from the plan and how much you stand to benefit from insurance protection. Some of the simple questions you need to ask before buying a non-medical plan include:
1. How much insurance coverage do I need?
The choice of insurance coverage should be based on your needs, including the amount of money you will need to settle your debts (like your student loans, car loans and mortgage) and how much money you hope to leave your loved ones in the form of financial support.
Generally, the amount of insurance required is a personal decision that can be determined by considering your future and current financial situation.
2. How long should the policy last?
Insurance shoppers can choose between the term and whole life policy. The term policy provides insurance coverage for a specified period of time, usually 1 to 30 years. On the other hand, the whole life policy provides coverage for as long as the policyholder lives.
The term policy is often cheaper than the whole life. Most of the non-medical plans are available over a stipulated time period. Therefore, it is important to find out from the service provider how long the policy will last.
3. Is the policy renewable?
The opportunity for renewing is a factor you may need to consider when choosing a no medical exam life insurance policy. Many of the leading insurance companies allow policyholders to renew their plans when the expiry date draws closure, without having to seek for re-qualification or submitting a medical exam.
However, some of the renewable insurance plans set a deadline when the holder can choose to renew. Therefore, it is advisable to find out from the insurance provider the age limit for re-qualification in order to avoid missing the opportunity.
4. Will the monthly premiums change?
Many of the insurance plan offer monthly premiums that increase as the policyholder gets older. Furthermore, if your plan expires and you are interested in buying a new policy or renewing your existing policy, the premiums will be higher because your age has changed.
Fortunately, some of the leading insurance providers offer whole life and term policies that feature fixed monthly premiums over the life of the policy.