Are No Exam Medical Insurance Policies A Rip Off?
How many times a week do you see the ads for protecting your loved ones with no exam medical insurance where no one will call on you? You can have up to $25,000 to provide money for your funeral and pass something on to your loved ones. Why do you think they can afford all the advertisements? It is very profitable for these companies. They charge big premiums for a relatively small amount of life insurance. Their experience is also that healthy people will apply and pay the big premiums and yet live a normal life.
Adult Medical Insurance
What does this really mean? The life insurance companies are still going to ask a number of medical questions either on the application or on the phone and the rate you pay for your life insurance will depend on how you answer these questions. While no one will call on you, if you are not truthful in your answers, they will not pay the claim.
Yes, there are some people with significant medical issues who will benefit with no exam medical insurance, but most people will qualify for a much better rate if they are willing to answer a few more health questions and possibly save more if they are okay with having a nurse visit with them in their home to do a blood test and ask the questions. The more information an insurance company has the better they can assess the risk of writing an insurance policy on your life. This means that if you are in good health, why not let them collect the information and save some big money.
The savings can be huge. For example, $25,000 for the TV type non-medical policy for a 60-year-old male non-smoker would be close to $150 per month while it could be closer to $80 per month if he was of normal health. Normal health can include taking medications for conditions like high cholesterol and blood pressure provided that the condition is controlled by the medication. Even people with late onset type two diabetes controlled by medication can qualify for a standard healthy person rate if it is well controlled. Your life insurance agent can determine if you qualify for the lower rate usually by asking a few questions. If there is a doubt it is a simple matter to request preliminary quotes from several companies. Why pay hundreds of dollars a year for life just to avoid more detailed questions and occasionally a blood test? No exam medical insurance is not a wise option in these cases and keep in mind that it is not the same as guaranteed life insurance.
Children’s Medical Insurance
This is where there is a real opportunity to save. The most cost-effective way to insure your children both now and into the future is with a child rider on your policy. If you have only one child, then choose a company that charges per child which can be as low as $2.50 per child, but for families choose an insurance company with one premium that covers all your children after they are 15 days old. You choose the coverage – $10,000 is a common amount. For example, one company charges about $6.00 per month for $10,000 of coverage for as many children as you choose to have and when they leave home, get married, or other event occurs per the policy (it can last to age 25), they can purchase up to $250,000 of any kind of insurance offered at standard rates. This way you guarantee their insurability, have sufficient coverage for final expenses, and it is very economical. Two companies offer this. One has a lot of questions to complete and the other has much less.
A second option is to purchase a 20 pay whole life police for say $50,000. This will cost $21 to $28 per month for 20 years and then it is fully paid up. Not only that, but the coverage is guaranteed to increase. For example, if you contribute $28 per month for 20 years, it will have a guaranteed face value of $170,000 by age 65. These rates do change frequently so ensure you get a current quote if you are looking into this option. By the way, the cost for $35,000 of a TV type child’s whole life policy is $29.26 per month.
The lesson is -it costs no more and usually results in significant savings to first have a conversation with an experienced online insurance broker when purchasing life insurance, rather than having a no exam medical insurance policy. It is a big commitment that lasts for many years so take the time to get it right the first time.