Reader’s Question:
I’m a single-parent with 2 kids in their teens. Is a no exam term life insurance a good deal for me?
June
Albuquerque, NM
Good question. A no exam term life insurance plan can be a good financial asset for you and your kids; however, this type of policy is not for everyone. By definition, a no exam term life insurance plan is a type of life coverage which is meant to be maintained for a certain period of time only. This type of life insurance is relatively affordable, considering the big amount of coverage it offers. It also does not require you to undergo a health or medical check-up.
So is this a good type of policy for you and your kids? It depends. This type of policy is definitely more expensive since the insurers are taking a big risk for not knowing the factors that can affect your lifespan. Do you need to pay these extra premiums just so you don’t have to undergo the medical test? Unless you have any form of medical condition that prevents you from getting insured, might as well take a policy with a medical exam and save yourself a lot of money.
You may benefit with a regular term life insurance instead since the premiums you will pay will reflect on your good health. However, if you find yourself repeatedly getting rejected insurance due to health related factors, then a no exam term life policy is your best option. Also, a term life plan is good if you only need coverage for a specific period of time only (10, 20, 30 years), such as while you’re raising your children and paying mortgage.

