Life Insurance Without Medical Exam
How can any company offer Life Insurance without any medical exam? Is there a catch?
Say I just found out I have a few months to live. I sign up for 150k life insurance. How much will my family actually get in case of death?
I heard withinn 2 years they have a limit. But what are they? How can a company stay in business unless there is a catch against this. Anyone know?
What checks do they do once you file a claim? Do they interview your doctors, family?
Generally there are a couple of ‘catches’ that Insurance Companies use to prevent this type of problem.
1. Term limit – Generally there is a HUGE limit on pay out during the first two to three years. Some have a set limit of pay out.. some have a sliding scale that pays more as time progresses.
2. Pre-existing Clause – Most policies have a clause that states if the insured has a pre-existing condition that was know to them and the generally expection is that it to be fatal, then payment would be greatly reduced or declined all together.
Combine these two clauses and in your secenario your family would probably get a percentage of what you’ve paid in (ie you lose money) or the at the most a very small amount over what you have put in.
These type of companies make a good profit from people who sign up.. pay a month or two… then forget to make a payment or pay late and the company drops them but keeps what they’ve paid in.
Hope this helps!
No Medical Exam Needed (51+)
