Reader’s Question:

An insurer here in Florida is offering a no exam whole life insurance plan. I have diabetes so I’m thinking of going with that kind of policy, but is that a good idea?

Sheryl

Coral Springs, FL

A no exam whole life insurance policy is one of those things that is just not recommended for everyone. This doesn’t mean that it’s a bad deal, in fact, this particular type of life insurance coverage can be quite useful to the right person. Here are a few things you should consider (very seriously) before purchasing no exam whole life insurance coverage:

Who Should Buy No Exam Whole Life?

First some facts: No exam life insurance policies, whether temporary (term life) or permanent (whole life), is considerably more expensive than your average life insurance plan. This is because skipping the medical test means the insurer has no clue about your state of health. This can be very risky for them so in order to compensate for this risk no-exam life insurance premiums are higher.

However, for certain people (i.e. diabetics) this may be advantageous. Compared to the rates they would get had they taken a medical/physical exam they could end up saving more money by going with no-exam life coverage. In fact, a no exam life insurance may be the only choice for some people. In this case, a no exam whole life insurance policy makes very good sense.

When to Walk Away from No Exam Whole Life

If you are in good state of health, young, or does not have any seriously unhealthy habits, then there really is no reason for you to skip the medical test of an ordinary life insurance plan. Why pay unnecessarily high rates? There are more options and policies better suited for you out there.