No Exam Whole Life Insurance – A Good Deal or Not?
Even if there are life insurance providers available that would give out a no medical test whole life insurance plan, exclusions are printed into majority of these plans that customers must be informed about.
You probably have seen TV advertisements which assure whole life insurance plan for people between 50 and 80 years old without undergoing any physical exams – these are called no exam life insurance plans. The following are a number of issues that you have to know prior to purchasing one of these life insurance plans.
A lot of these plans are recognized as “modified whole life insurance.” They are customized in order that the policyholder should meet particular set of provisions to be eligible for a complete payment being given out at the time of the demise of the policyholder. A number of alterations in these life insurance policies are:
1. The beneficiaries would receive an incomplete benefit or not anything at all in case the policyholder dies in the first two years of the life insurance plan being given out. Modified whole life insurance does not need a medical test since insurers either pay an incomplete benefit or not anything at all in the event of death due to natural causes in a particular time period.
2. Majority of these life insurance plans would provide full coverage for accidental death starting the day the plan is given out. That means even if you will not be covered in case of a natural death like stroke, heart attack and so on, you will be covered in case an accidental death like car accident, fall and so on. The majority of life insurance plans have exclusions for recreational activities like sky diving, bungee jumping, etc.
3. This kind of life insurance is usually very costly.
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