Myths and Misconceptions about Life Insurance
When you buy life insurance, there are so many different factors and variables to consider. It can be tricky to know what’s right for your particular situation. Fortunately, there are plenty of resources available to help you make the best decision for your needs.
That being said, there’s a lot of information out there that isn’t correct. When it comes to buying life insurance, many people have misconceptions about policies, coverage types, and other important details. Myths and Misconceptions about Life Insurance Unfortunately, not all myths about life insurance are positive — some of them lead people in the wrong direction or prevent them from getting the policy they need.
Here are 10 common myths about no exam life insurance and why they aren’t true at all.
Myths and Misconceptions about Life Insurance
#1 You Have to Be Healthy to Get No Exam Life Insurance
Not only is this untrue, it may also be detrimental to your family if you try to get a policy while sick. If you apply for a no exam policy while healthy and are declined, you can apply again later on when you’re healthier.
Once you apply for life insurance, your private health insurance companies information is on file. So, even if you get a policy later on, your insurer will have your earlier medical information. Myths and Misconceptions about Life Insurance If you get sick, your insurer may decide to cancel your policy or raise your rate. If you apply for life insurance while healthy, there’s nothing to worry about.
#2 No Exam Life Insurance is Only for the Young
Many people believe that no exam life insurance is only for the young, but that’s not the case at all.
As long as you meet all of the other requirements for the policy, you can get no exam life insurance regardless of your age.
No exams are especially helpful if you’re older and have health issues that make it difficult to get approved for other policies, like if you have diabetes. No exam policies may be a good option for older applicants, since older people are likely to have more health issues than the younger generation.
#3 No Exam Policies are Only for Newbies
A lot of people believe that no exam policies are only suitable for newbies who don’t have any health conditions.
This is a misconception that can prevent a lot of people from getting the coverage they need. There are a few different types of no exam life insurance policies, so it’s common for people to get confused about which type they qualify for.
For example, there are no exam term policies and no exam universal life policies. People who have health conditions but still need life insurance should apply for a no exam term policy.
A no exam universal life policy is a better option for someone who is in excellent health and can’t get term coverage.
No exam policies are available to people who have health conditions and have been turned down for other types of coverage. It’s definitely not just for newbies who are just starting out in life.
#4 No Exam Life Insurance has a Lot of Hidden Costs
Unfortunately, no exam life insurance has a reputation for having a ton of hidden costs.
People often assume that it’s a sketchy policy that will leave them with nothing but bills.
There are a few aspects of no exam policies that aren’t the same as term policies, but those differences don’t always result in hidden costs.
No exam policies may also have a higher initial rate than term policies. Again, that’s because companies don’t have to worry about denying coverage to people with health conditions.
#5 It’s Impossible to Find Cheap No Exam Coverage
This is a common misconception that can prevent people from ever getting coverage.
Financial planners often recommend people get term coverage, but term policies can be pretty pricey. That’s why it’s so important to look into no exam life insurance. Because no exam policies don’t require a health exam, they are normally much more affordable than term policies.
In fact, no exam policies are often only marginally more expensive than term policies for healthy people. Any reputable life insurance broker should be able to help you find cheap no exam coverage.
#6 No Exam Life Insurance is the Same as Term Life Insurance
When you’re comparing two different life insurance policies, it’s normal to assume that they are the same.
In reality, no exam life insurance and term life insurance are very different types of coverage. That said, no exam policies are a great option for people who have private health insurance conditions that may prevent them from getting a term policy.
No exam life insurance policies come with shorter coverage terms than term policies. That means you need to decide how long you want your coverage to last when you apply for a no exam policy.
Term policies are best for people who don’t know how long they’ll be around. No exam policies are better for people who know they’ll outlive their coverage.
#7 No Exam Life Insurance Comes with a Lot of Conditions
Life insurance policies are contracts that are designed to protect your family if you die.
Because no exam policies are for people with health conditions, it’s common for people to assume that these policies come with a lot of conditions. That’s not the case.
In fact, no exam policies are often better than term policies for people with conditions. No exam policies are guaranteed renewable and convertible.
That means your company has to keep your policy in force as long as you pay your premiums on time.
And your policy can be changed to a term policy once your health improves and you’re ready to get a more standard policy.
#8 No Exam Life Insurance doesn’t Cover Loss of Income or Debt Protection
This isn’t strictly true.
No exam life insurance policies do offer some basic death benefits, including death benefit coverage and guaranteed death benefit.
These two benefits cover death by natural causes and death by accident. They also cover any debts you have, like your mortgage or student loans.
No exam policies also offer disability death benefits, but that coverage is much less robust than coverage for death by natural causes or accidents.
Some no exam policies also offer a return of premium benefit that allows you to get part of your premiums back if you die before the policy ends.
No exam policies also offer term certain death benefits, but those are much more limited.
#9 No Exam Life Insurance is Only for People with Poor Health
Unfortunately, this is a common misconception that can keep people from ever getting coverage. It’s true that no exam policies are for people who have health conditions, but they may also be an option for people who have excellent health.
Rather than being geared towards people with poor health, no exam policies are normally more expensive than term policies. It’s true that they are often recommended for people with health conditions, but they may also be the best fit for people who are in perfect health.
As long as you have the income to support the policy and the coverage amount you need, a no exam policy could be a better option than a term policy.
#10 No Exam Life Insurance is the Best Option for Everyone
Not only is this false, but it’s also dangerous. It’s important to remember there’s no one-size-fits-all policy — you need to explore all your options and find what’s best for you.
The type of life insurance you get will depend on a few factors, including your health, your age, and how much coverage you need. If you’re in need of life insurance, it’s important to explore all your options.
No exam life insurance is a good option for some people, but it isn’t for everyone. No exam life insurance policies are a good option for people who have health issues or who are young and have a low or average income.
But if you have a high income, or your health is good, you may want to look into other types of life insurance.
The bottom line is that no exam life insurance policies are a great option for people who have health conditions and need life insurance but can’t get coverage any other way. They are often more affordable than term policies and can be tailored to match your needs.
Plus, they don’t require a health exam, so they are a good option for people who can’t get coverage any other way. No exam life insurance is a great solution for people with health conditions who can’t get coverage any other way. These policies are normally more affordable than term policies and can be tailored to meet your needs