Life insurance that doesn't require a medical exam is an increasingly available and attractive product offered by a host of competing companies. Traditionally, no medical exam life insurance was thought of as available exclusively for those with chronic health problems. Insurers have extended this type of policy to include anyone under a particular age that can prove some level of health through basic questions regarding lifestyle and family history.

In other words, just because an insurance company advertises that no medical exam is required doesn't necessarily mean that everyone will qualify for their policies. Participants must first supply information regarding personal habits, including tobacco use and health history on the application form. Each company maintains its own underwriting guidelines by which an individual's general health is then more thoroughly evaluated.

Every application is put through a rigorous verification process and then assigned a particular risk classification. This risk classification is the single most important factor in determining how much each individual pays for his or her insurance premiums. However, consumers can take heart in the possibility that if they are denied coverage for health reasons, they may still be able to gain approval from other companies.

Choosing the Right Policy

Consumers have more options than ever for no medical exam life insurance protection, including both term and permanent coverage. When choosing the right life insurance policy, buyers can benefit from doing a little research and a thorough inventory of financial needs. Each individual must first assess his or her family's financial profile, including income, debts, assets, and future goals.

A life insurance policy is designed to provide peace of mind that if a parent or caretaker should die, his or her dependents will be able to continue making payments on outstanding debs and bills. For example, a policy will ensure that a widow will have the ability to maintain some semblance of her former lifestyle after her husband dies. This lifestyle may include continuing payment on a mortgage, business or education loan.

Term and Permanent Life Insurance Coverage

Life insurance policies are available in temporary or permanent forms. Term policies pay a death benefit to survivors only if the policyholder dies within the term of coverage. Permanent policies are more expensive and generally do not specify a term of coverage, extending to include the entire lifetime of the policyholder. They may also carry extra components like savings and investment accounts.

While a permanent policy may build cash value over time, many people are finding that term coverage suits their immediate insurance needs. A term policy can be purchased as an additional safeguard to a permanent policy, or as one's primary coverage. Many term policies can be renewed or even converted into a permanent policy after the term is up.

Since term policies carry the lowest rates, people often choose this type of coverage to get a policy with the highest face value for their insurance dollar. People with dependents typically need life insurance of some kind, and a term policy allows for immediate protection. While parents and other providers may seek out a permanent policy in the future, a term policy can serve as an affordable way to achieve protection right now.