CHOOSING A TERM LIFE INSURANCE POLICY
When it comes to purchasing term life insurance it is important to understand the conversion privileges as well as the accelerated benefits built into different policies. For example, if someone takes out a twenty-year term and in the tenth year has a heart attack, stroke, or develops cancer; knowing what kind of permanent insurance the term policy can be converted to becomes extremely important. Some insurance companies intentionally design term life insurance policies to have terrible conversion options by only offering an overpriced permanent policy which limits their exposure to future adverse risk. This allows the insurance company to price the term policies a few dollars less than other carriers. It is extremely important to understand the conversion privileges inside the term contract taking out a policy.
Some insurance companies offer accelerated living benefits for terminal, chronic, and critical illness built into the policy. These benefits allow the policyholder to access death benefit if a triggering event occurs (life ending cancer, debilitation, or a serious heart attack or stroke). The best companies offer these benefits while charging almost the exact same premium as another company does for a typical death only policy. It is prudent to compare the benefits inside the term life insurance policy before making the decision to purchase life insurance. Furthermore, there is no penalty to cancel a term life insurance policy and switch to one with more benefits, although you have to make sure a better option is being offered by an insurance company before canceling the current policy.
Approval for life insurance with no medical exam
Multiple life insurance companies have rolled out accelerated underwriting programs where the application do not have to complete a medical exam in order to take out a life insurance policy. The insurance company gathers personal information from multiple sources and decides if they want to make an offer for life insurance without the proposed insured having to take a paramedical exam. This eliminates the need for a blood test and other prerequisites. Coverage limits for these types of policies are typically limited to death benefit amounts of 1,000,000 to age 50 and 500,000 to age 60. If someone does not want to go through the paramedical exam process, applying for life insurance with a company offering an accelerated underwriting program becomes a great option.