Contracts With No Exams

Term life insurance with no exams is quite popular since limited year protection is relatively inexpensive up until age 50. Term life insurance with no medical exam can be attained easily through the mail or through the purchase of a policy via the Internet. Certain health and medical questions will be asked, but as long as the applicant answers honestly, when verified, the policy will remain in effect and for the same rate originally purchased for. A policy without a medical exam is for insurance purposes only, not investment or retirement planning.

The insured will purchase a term life insurance with no exams policy for a period of one to 30 years. Upon the death of the policyholder, the beneficiary will receive the face value of the plan if the policyholder passes away within the specified term period of coverage. The suggested face value policy amount is 20 times the annual income needed of the beneficiary. For example if a spouse works and makes $35,000 per year, then the suggested policy amount would be $700,000 for the beneficiary (assuming it is a spouse or dependent). Typically by having a policy with a high face value, the beneficiary will be able to invest the amount and live off of the interest at virtually the same type of lifestyle they were accustomed to.

This is demonstrated as follows: given an average 5% interest return on investment, the beneficiary can invest the policy funds and live off the interest ($35,000 per year), without touching the principle. Surprisingly, a term life insurance with no exams plan for up to $1 million is lower than expected. Term life insurance with no medical exam policies are inexpensive because the insured has to pass away while the policy is in effect (within a maximum of 30 years). There aren't any premium returns (except with similar term polices which cost more), and no investment abilities. Hopefully, the insured has other retirement investments in place, because a term life insurance with no medical exam policy does not offer a retirement investment component.

No matter what type of term life insurance with no exam is chosen, a Christian should use their God given wisdom and understanding to make any financial decisions. "Through wisdom a house is builded; and by understanding it is established." (Proverbs 24:3) Christians interested in purchasing term life insurance with no exams should carefully research the agency considered before purchasing a policy. Choosing an agency with an "AAA" rating for service and value is important. The insurance agency should also be insured in case of business closure.