Only You Can Turn an Ordinary Policy Into an Affordable Life Insurance Policy By David Livingston At Isnare.com Ezine Articles

On the fringes of your mind, the weight of not getting a life insurance policy may be bothering you. After all you may be a family man with a house loan. Perhaps your wife is a lovely lady with two of the cutest kids and life is all roses and honey.The only thing missing is security - in the form of a life insurance policy that shall act as an umbrella against possible financial mishaps.

You are young. However, you know that death does not really care. It may pounce on you anytime, just as it does on the ninety year old. Then why do you hesitate to buy a life insurance? You hesitate because you are too busy to take a medical exam and besides, with mortgage payment and all, you hardly have any money left to pay the insurance premium.

Have you ever thought how are they going to pay the mortgage should you die tomorrow? Can you imagine your loved ones without a home and a hearth because you, the sole bread earner, are no more? As for not finding time to take medical test, you can opt for life insurance no exam. If you can spare any time to search the net, you will find many brokers and insurance carriers dealing with life insurance no exam.

Now, to get life insurance no exam, you must check whether you are eligible or not. Deciding factors include age, health history and amount of insurance. Take for example a 30-odd years old man who wishes for a $500,000 coverage amount over the next 30 years. Then in this case, his monthly premium shall come to $114.17 and the annual payable amount will be $1,245 for life insurance no exam.

Now imagine another scenario when you want coverage only for 10 years for an amount of $500,000, then the premium comes down to $47.23 from the previous $114.17. Isn't this affordable life insurance? But keep in mind this is term life insurance no exam policy. These policies have lower premiums than universal or whole life insurance policies. But the term life insurance policies have little cash value. There are other disadvantages too - if you do not die within the term period, you get nothing. If your death occurs even one day after the expiry of term, no benefit is earned by your family. Hence, the only way to get the benefit is that your death should occur within the term period.

If you are only 30 plus, you are not likely to die in ten years and the insurance carrier knows it. Therefore, the ten-year coverage is not sufficient for you. You need coverage for many more years, at least until your children are self-sufficient, your mortgages have been paid and you have made a decent bank balance. For that, you need to take 30 / 35 years of coverage. On the other hand, you can decide to take a ten-year of coverage and then renew it once it lapses.

If you end up doing so, it is probably a grave financial blunder. See, at the age of 30 you pay a premium of $47.23 for a month which will become $95.83 when you are 40 and $230.78 when you are 50. And this is so if you are a non-smoker. For a smoker at the age of 50, the amount is none less than $502.06. All the calculations are made keeping in mind the present day rates.

If low-priced term life insurance is what you want then:
1. Give up smoking. Smokers pay higher premiums. For instance, a 40 year old individual who smokes not pays a monthly premium of $95.83 for a ten-year period of no exam policy with $500,000 coverage amount but a smoker will have to pay more than twice the amount - $231.08.

2. It is always better to go for medical test than to go for life insurance no exam unless you are quite expert in reading the fine prints. No reputable big carrier has life insurance no exam policy.

3. It is always better to go for the entire coverage length rather than going for shorter period and then trying to renew. The carrier may not want to renew your policy if you become terminally ill. If you need coverage for 35 years buy it for 35 years. It comes cheaper that way.

4. Calculate your required coverage amount. If the monthly premium for $500,000 coverage amount is $114.17, then the monthly premium for $200.000 coverage amount is $49.52. Determine the same on the basis of your family's requirement and amount of money you can afford per month.

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