The term and whole life insurance policies do not require medical exams. But, the death benefits for wholelife coverage are generally limited to $50,000 or lower -- this is tenfold less than what's typical for term life benefits. If an insurer does not offer coverage for medical exams with a higher mortality benefit, this usually means that the medical exam is dependent on your answers to health question.
Convenience. Simplified insurance is an option if you don't wish to have to go through a medical exam. A recent survey found that 47% Americans prefer life insurance with a simplified process.
The following rates are for a policy of 20 years for a 35year-old male who is not a smoker and has a preferred health rating.
You can be covered quickly with no medical exam. Instead of waiting for weeks and months for results and processing, you can apply immediately. If you require coverage quickly, such as for a trip coming up, this may be a good option.
For a simplified issue policy, you will need to complete a questionnaire about your health and medical history. Access to your medical records will be required. The answers to your questionnaire as well as any medical records will suffice.
If you are looking for something simpler, a simplified issue may be the best fit.
You may not have as many options for life insurance as you used to depending on your health and age. There are no restrictions if you're under 70 and in good physical condition. Some insurers may restrict who can buy a product. This means that you might need to expand your search to include more companies.
The cost of life insurance depends on many factors, including your age, health, and the specifics of your policy, but a healthy 35-year-old could expect to pay between $25 and $30 per month for a 20-year, $500,000 term life policy. Rates are five to 15 times higher if you buy cash value life insurance, like whole or universal life insurance.
The death benefit can replace financial support for decades. It will also ensure that your family does not have to worry about paying for college, funeral costs, care for your kids, and college tuition. This allows your spouse to continue saving for retirement or help an older parent.
While term life insurance can be purchased to protect their family until they are old enough, some people may require a longer safety net. You might have special needs dependents, for example. A 30-year term life policy could be extended through the entire life of your child. It can also be used to provide financial assistance if your long-term plans for care and investment are not mature. An extended term, say 30 years, can offer protections to other dependents such as an older parent who needs your help.
While most people arrange term insurance that will last until their children become adults, others may need a greater safety net. A special needs dependent is an example. A term life insurance policy with a 30 year duration can be extended to provide financial support for your child throughout their entire lives. It can also provide financial help if you die before the investments you have made for their long-term support reach maturity. For older dependents like an elderly parent that depends on you for support and care, a longer-term, such a 30 year, can also offer protections.
Many term life insurance policies offer a conversion option, putting you in control. This allows you to switch to a permanent life insurance policy before the term expires, usually without requiring a medical exam.