Many consumers are wondering if no physical exam whole life insurance policies are really a good deal, with good reason. Do you know what I'm talking about when I say "no physical exam whole life"? Surely you've seen the commercials on television "for just a few cents a day" or the one about the guy throwing his "spare change" in a jar each night when he goes to bed. The question that I keep getting about these though is "are they really a good deal?"
Let's take a look at these types of whole life insurance policies.
The first thing that you'll find when you send off for more information about these is that they are not considered "regular" whole life policies, but "modified" whole life. They've been modified not necessarily to rip you off, but in order to meet a specific set of criteria. It's up to you, the consumer, to read the fine print thoroughly and make sure that the modifications of the policy that you are considering meets the needs of yourself and your family.
The first modification that I found was that the beneficiary of the policy will be paid a reduced rate if the insured person passes away from natural causes within the first two years from the date that the policy takes effect. They may pay 50%, 75% or less, depending on how long afterword that the death occured or whatever their guidelines happen to be.
You are covered immediately if you happen to die from an accident. This is known as "accidental death coverage" and there is no two year waiting period for this coverage.
Are you confused? No problem. It's totally understandable and you're not the only one so don't feel alone. Let me explain in more detail.
Let's say that you purchase one of these no physical exam whole life policies on January 1, 2007 and you pass away from natural causes on January 1, 2008. In this case your beneficiary would receive a reduced payment because of the modification that states you are not covered in the event of death from natural causes in the first two years.
Now let's look at another example.
Let's say that you purchased the policy on January 1, 2007 and were tragically killed in an auto accident two months later. In this case your beneficiary would receive 100% of the policy because you were covered immediately for accidental death.
Let's do one more example.
Let's say that you bought the policy on January 1, 2007 and passed away three years later from a heart attack. In this scenario you are covered because although you passed away from natural causes, it didn't happen until after the two year exclusion or waiting period was over.
Most of these types of no physical exam whole life insurance policies are sold in "blocks" of coverage. For example, you could by coverage in blocks from $1,000-10,000.00 each.
These blocks of coverage can become quite expensive considering that the average funeral costs between six and ten thousand dollars, at the time of this writing. It can be especially expensive for elderly couples without coverage that live on fixed incomes.
Although it may be your only option once you reach a certain age group, I highly recommend that you look at different alternatives before purchasing this type of no physical exam whole life insurance policy.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
I always have the fear that he might leave me
By: DODO | 29-10-2007
i always have the fear that he might leave me, he says he loves me and cannot leave me, but still i have this fear,and it causes many problems between us.. may be because he's not emotional like me, i always feel i love him more than he does,sometimes he can control his feelings.. but for me i really cannot
W oo-Hoo1 My sis is now a Yedda-it e1
By: ChuckY | 24-10-2007
Woo-Hoo! MY sis is now a Yedda-ite!
How can I get my 2 year old son to eat better? He ...
By: tapoutqueen | 23-10-2007
How can I get my 2 year old son to eat better?He is a very fussy eater and prefers drinking milk to eating. He has cereal for breakfast which he doesn't always eat. The rest of the day is a battle of wills to get him to eat something.He has now started to refuse to eat foods he used to enjoy. All he will eat(sometimes)is pasta with cheese sauce, chips, beans on toast, fromage frais and Marmite sandwiches.Today he has only eaten a couple of spoonfuls of cereal and milk. He has refused everything else. Any suggestions?
How do you tell your husband you think his brother may be gay?
By: tre1129 | 22-10-2007
How do you tell your husband you think his brother may be gay?
Restaurant Recommendation?
By: janedoe | 16-10-2007
Where is the best place to eat Italian?
Geneva Foster and Michael Ryan in Houston Starved their Son
By: Belinda | 14-10-2007
A couple in Houston, Geneva Foster and Michael Ryan, were arrested for starving and abusing the mother's 13 year old son.Police says he weighed 72 pounds and looked half his age.What kind of sentence fits this kind of people?How do you punish a mother who starves her kid?
Q&A Powered by:
Latest Finance Articles
Understanding Debt Consolidation Loans
By: Richard Greenwood | 07/10/2008
It can be all too easy to end up in debt and especially during the current times of financial uncertainty you may find yourself unable to make repayments. Consolidating your debt can make your debts easier to manage and lower your interest charges meaning you become debt free faster.
Credit Card Comparison
By: Richard Greenwood | 07/10/2008
Credit card offers are everywhere and all claim to out do each other. How do you cut through the marketing talk and understand the key features you need to compare to make an informed decision. Find out with this informative article on credit card comparison.
Shopping For Auto Insurance
By: Brenda Williams | 07/10/2008
When you get your license for the first time before you begin driving you need to get car insurance as it's mandatory to have car insurance while driving. Car insurance can be rather expensive, especially for new drivers which is why you'll need to ensure that you're getting the best...
Taking 100% Responsibility - the Prerequisite for Creating Money & Marriage Success
By: Leslie Cunningham | 07/10/2008
It's a simple concept, to refrain from blaming and complaining, and yet it's a challenge to change a habit, especially one that everyone else has. Like sticking to your diet, when everyone else around you is enjoying chocolate cake. Keep reading and you'll find out how this relates to your marriage and finances. Then I'll share some action steps to help you become 100% responsible for your life.
Retirement Income Investing and Your Portfolio
By: Steve Selengut | 07/10/2008
Brokerage firm monthly statements are designed to promote either fear or greed, depending on the current market environment. Nowhere on your statement can you find numbers that report your net investment, your total working capital, or your true asset allocation. Current and projected income numbers are given little attention
Buy to Let Investors Get a Boost
By: Parmdeep Vadesha | 06/10/2008
Buy to let UK investors are in a prime position to take advantage of a new government plan to spur property market activity. The scheme aims to permit property buyers to buy properties worth up to
How to Buy a Repossessed Property for Below Market Value
By: Parmdeep Vadesha | 06/10/2008
Buying a repossessed property is what matters for investors who are keen on reaping high profits. But even with the advantages it poses, there are certain aspects you need to be aware of before you start on the task of acquiring your next property cheaply.
Brits Should Ensure They Have the Cheapest Energy Supplier
By: Abbi Rouse | 06/10/2008
With energy prices escalating steadily, consumers could knock considerable amounts off their utility bills by switching from their areas default supplier.
Finance 
