Whole Life Insurance or No Exam Life Insurance?

Insurance market is complex and diverse.  Without proper knowledge you can be easily misled and convinced to buy a policy that offers limited benefits.  Or worse, you can overfund a policy that pays very little death benefits or no benefits of all.

financial insurancel-advisorNegotiating with an insurance company can be easily compared with planning a war: you must know the “enemy” (the insurance company in this case), the battleground (the policy) and where to strike (you goals and the benefits you want to obtain).  One of the most common policies on the market is whole life insurance and no exam life insurance.  They have similarities, but also some significant differences

Whole life insurance provides protection for as long as the policyholder lives and the premiums are paid. If you delay paying the premiums, the policy will lapse. No exam policies provide both permanent protection and term life protection.  This depends on the exact no exam policy type and some personal details of the insured.

As you have noticed, no exam life insurance is a generic name for all the policies that do not require medical exams in their underwriting process.  Whole life insurance is usually used as heirloom, because everything the insured saves will be later received by the designated beneficiaries.

With whole life insurance you can get huge amounts of coverage, even several millions of dollars. No exam life insurance policies limit the maximum amount of coverage to several hundreds of thousands of dollars. Some no exam policies go even lower than that, providing a maximum coverage of $50.000.

Whole life insurance has high premiums right from the start, but they will be locked at the same level. It does not matter if you get sick while under coverage.  With no exam policies, the premiums will be renewed each year and will be modified accordingly with your age and health status.

Check our website for more details and free life insurance quotes: http://wholelifelifeinsurance.org.