Question:

I’m already entering my senior years and I’m interested in investing on a life insurance plan. Should I go with a No-Exam Life insurance policy? I’m not exactly in the best of shape and would rather skip a medical test if I can. Thanks!

Arthur

Los Angeles, CA

Answer:

Your’s is a very interesting question. Before deciding to purchase a No Exam life insurance California policy, you must first understand how this kind of coverage works and how it ties up to your long-term life insurance or financial goals. A No-Exam life insurance is a fairly recent phenomenon, invented out of the need of life insurance companies to maintain their competitiveness in such a cut-throat industry.

The way our parents and grandparents did it, one must first undergo and pass a medical exam before a getting a policy. And while the young and healthy would not have a problem with this, older people tend to get rejected or disqualified more often due to obvious health reasons. That’s why No-Exam policies are so popular, especially to the baby boomer generation, it’s a no frills, almost guaranteed way to get yourself life coverage.

But there is a catch. You would tend to pay more if you decide to go with a No Exam life insurance California policy (and in other states as well). It’s all about the risk; since the company has no idea what state of health you are in, they would categorize you as a high-risk customer by default. And the higher the risk you represent to the life insurance carrier, the more they will compensate with higher premiums.

If you have been rejected for coverage many times already with someone else, or wouldn’t mind paying an extra premium for not having to undergo a medical exam, then a No Exam life insurance policy is your best choice. However, if you are price-conscious and would rather avoid spending too much money unnecessarily, then you may want to reconsider the exam or compare your options for cheaper coverage by using the many life insurance portals available on the Web.