Usually, if you buy a policy, you need to go through a medical exam, but in term life insurance with no medical exam, you don't need to go through it. As such, you are spared the hassle of getting a blood sample and a visit to a doctor.
No Medical Exam for Term Life Insurance
Whenever you are buying a life insurance policy, the first question which you would ask is which policy -- Whole or Term Life Insurance -- to go for? And what is the difference between them? Both are different and most people don't understand the difference between the two, so here we explain that.
Also known as temporary insurance, term life insurance policies, provides a coverage for a particular period which usually ranges from 10 years to 30 years. The term is usually specified, say till your child grows to a certain age, till you are retired or your child has finished his or her education.
You need to pay for the policy for the whole term and at the end of it the policy expires. In case you don't make a claim within that specified period of time, there are no benefits which you receive. It's just like a home insurance or auto insurance.
On the other hand, universal life insurance is a permanent policy, which does not expire after a certain period, but then you need to keep paying the premiums. It not only provides similar coverage as that of term life insurance, but can also be used as an investment medium.
A part of the premium you pay goes towards life insurance and the other part goes towards investment and you get interest on such insurance. The next question that you would ask is which is better. It's for you to choose, each has its own advantages and disadvantages.
On the other hand, for Universal Life Insurance, the cost of premiums are high, but in the long run, you can get a return out of it.
American Association of Retired Persons (AARP)
People over 50 can opt to be a member of the American Association of Retired Persons (AARP), a non-government interest group, which aims at enhancing the quality of life of the older people.
It's a kind of lobby in the country, where common people are its members, and they collaborate with insurance companies to provide cheap term life insurance, investment funds, and other financial products.
Members of this organization are entitled to special offers like low premium rates, which are provided by insurance companies. There are several cheap options available, so you need to do your research before you buy one.
The insurance company asks you questions to check if you are eligible or not. There is no need to wait for a given period for the range of benefits to take effect. There are few companies offering the facility to renew the policy once term ends and as you reach a certain age, you can turn it to a permanent policy.
Once you understand what is term life insurance and its several advantages, you are in a better position to go through the fine prints in detail. If you don't understand the fine prints, consult an insurance attorney or a person who is well versed in the field of insurance.