Reader’s Question:

Why do different life insurance companies here in Ohio offer term life insurance without medical exam? Do they really gain profit from it?

Shaan

Akron, OH

Life insurance without medical exam has always been offered to younger people. The older you become, the lesser the amount your beneficiaries will receive. Originally, a life insurance provider offered $150,000 worth of life insurance without medical exam online and it did very well at first so other life insurance providers follow. They wished to discover how far their limits could be, what reasonable safe amount they can offer online and for which ages.

Term life insurance without medical exam is normally level term plans. Term life insurance policies for 10, 15, 20 and 30-year term are very common. The premiums you pay will not increase and the face value of the term life insurance without medical exam policies will not be reduced.

Life insurance providers in Ohio offer term life insurance without medical exam simply because it is quite a profitable venture if the applicant is somewhat in good health. They do away with the charge they have to pay the doctors to examine the applicant. Also, life insurance companies have a protection called “incontestability” clause that says that if the applicant neglects to divulge information that will stop them from giving out the policy, they could take it out with a specified period of time, normally one or two years.