No Physical Life Insurance
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.
· 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.