Most people think that there is no insurer that does not require a physical
examination, but the truth is, there is one. No physical exam life insurance is
viewed as simplified. This kind of coverage is one that has a term and it is
the individual who gets to choose the terms. This special kind of coverage
often comes at a higher price compared to other types because the insurance
company will not be able to calculate the risks of each individual for lack of
the medical exam.
No physical life coverage is ideal for people who have an ailment. People
who have ailments generally do not qualify for any other form of coverage. No
physical term life coverage these people with security with regards to the
financial future of their families. The premium paid will not be based on an
individual's health status and this is a very big relief to people who are
sick.
Make no mistake about it, this type of insurance is not only for the
elderly and sick, such as over 70 life insurance, but rather this is also ideal
for people employed in high-risk jobs such as construction, police, and
military. There are numerous companies that offer this insurance type. There is
also an additional policy that lets a parent purchase one for children during
time of birth lasting to the age of 21.
When the child becomes an adult, he or she has the option to purchase a
whole life insurance plan or additional coverage under the same plan. There is
also the option of including his or her spouse or child if they are already on
his current plan. It is a wise decision to get a no physical life insurance at
birth. Should the child contract any serious illness or terminal disease, he or
she will be protected until legal age. The child will also have the choice of
continuing the benefits of the coverage when he or she is of legal age.
Disadvantages of No Physical Life Insurance
Just like all the different coverage types, namely; car insurance for under 25, guaranteed acceptance life insurance and joint term life insurance, the special insurance coverage also has a disadvantage. No coverage is perfect.
Just like all the different coverage types, namely; car insurance for under 25, guaranteed acceptance life insurance and joint term life insurance, the special insurance coverage also has a disadvantage. No coverage is perfect.
· Premiums are higher. The premium paid for a whole life policy with no
physical exam will be quite higher compared to a regular life policy. Premiums
for men taking out such a policy will be much higher still. This is because
insurance companies calculate premiums based on the type of risk they are
insuring against and men are at a higher risk of dying earlier than women. For
example, if an individual takes out a policy for $100,000 at the age of 25 he or
she will pay approximately $25 monthly compared to $116 monthly if the same
policy is taken out at the age of 65. It is best to get a quote from a trusted
insurance company who can provide you with plenty of details about the ins and
outs of such policies.
· Lower insured sums. Companies that offer this policy often offer relatively lower sums compared to other regular life policies. The life insurance carrier is not fully checking a person's health with a medical exam; they are taking a higher risk when extending coverage to people so most companies opt to provide lower insured sums. Most companies will insure for up to $250,000 without an exam, and some companies will insure for up to $500,000. A person has the option though to purchase multiple no physical life insurance policies from different companies.
· Less favorable terms. Again, because of the higher risk taken by insurance companies on individuals that have pre-existing medical conditions, and because of the fact that they will not be able to gauge how healthy a person is, the terms are usually less favorable than other insurance policies. This type of policy is not best for everyone who has a health issue. For a person who only has elevated blood pressure or cholesterol, then this may be a good choice. However, for people who have serious health issue, it is best to choose a different type of policy. A no physical life insurance is at best suitable for people who are in average to above average health.
· Lower insured sums. Companies that offer this policy often offer relatively lower sums compared to other regular life policies. The life insurance carrier is not fully checking a person's health with a medical exam; they are taking a higher risk when extending coverage to people so most companies opt to provide lower insured sums. Most companies will insure for up to $250,000 without an exam, and some companies will insure for up to $500,000. A person has the option though to purchase multiple no physical life insurance policies from different companies.
· Less favorable terms. Again, because of the higher risk taken by insurance companies on individuals that have pre-existing medical conditions, and because of the fact that they will not be able to gauge how healthy a person is, the terms are usually less favorable than other insurance policies. This type of policy is not best for everyone who has a health issue. For a person who only has elevated blood pressure or cholesterol, then this may be a good choice. However, for people who have serious health issue, it is best to choose a different type of policy. A no physical life insurance is at best suitable for people who are in average to above average health.
Life insurance is important for all and finding the right kind is important
for your financial well being. Getting a no physical life
insurance is much more costlier and in comparison, a joint term life insurance is
even much more difficult to procure. Find out more by reading up before
deciding and procuring your life insurance coverage.
Article Source: http://EzineArticles.com/5510940
Tags:
Life insurance
