Request Your Free Quote Now
No Medical Exam Whole life also known as straight life, or permanent life insurance provides lifetime protection for a specific amount. No Medical Exam Whole life is basically term insurance with the addition of an investment component. No Medical Exam Whole life Insurance has a lot of advantages over Term Life Insurance.
Advantages
No Medical Exam Whole life policies are generally a little more expensive, but work especially well for estate planning, because the policy can be set up to pay estate taxes upon death. This can save heirs hundreds of dollars because the estate then does not have to be settled through the government. Other advantages of No Medical Exam Whole life insurance include:
The value of the policy grows over time because of the investment aspect of the plan. The policy owner can also decide how to use the dividends from a No Medical Exam Whole life insurance plan. They can either be used to pay premiums, buy more insurance, or be paid in cash to the policyholder.
Premiums remain level for the life of the policyholder. With this in mind it is often best to buy when you are younger to get lower premiums.
No Medical Exam Whole life insurance has a guaranteed cash values. This means that some of the money paid into the policy accumulates a guaranteed cash values. If you decide to surrender the policy, which means that you sell it before the death of the policyholder, the cash value is available for your use. The policyholder can also use the policy to borrow money against the cash value as a policy loan with the current policy loan interest rate.
The accumulated cash value can be used at retirement to supplement the retirement income. The cash value is tax-deferred until you withdraw it. A portion of the premium goes toward your cash value. In this way, the entire policy could be paid for in a few years. Unless you make a change to your policy you do not have to have any medical exams to maintain the insurance. Request Your Free Quote Now
Different Types of No Medical Exam Whole life Insurance
The Most common type of No Medical Exam Whole life insurance are traditional, interest-sensitive and single premium. Traditional has a guaranteed minimum rate of return of the cash value. Interest-sensitive has a variable rate of return on the cash value, like an adjustable rate mortgage. This gives the policyholder the ability to increase the death benefit without increasing premiums. Single-premium is when a person has a large sum of money to purchase a policy in whole up front. This type of No Medical Exam Whole life insurance still has the same tax deferment and accrues cash value.
You may find it a good idea to look at "No Exam No Medical Exam Whole life vs No Exam Universal Life" insurance. You probably wonder which is best for you and your family. Because more people are familiar with it let us take a look at the mechanics of No Exam No Medical Exam Whole life insurance policy first and find out once and for all which is best "No Exam No Medical Exam Whole life or No Exam Universal Life" insurance.
No Exam No Medical Exam Whole life Insurance
We have a certain fondness for the No Medical Exam Whole life insurance policy because of the myriad of benefits it provides. There is the guaranteed level death benefit that you cannot outlive. You also have a guaranteed premium when you purchase No Medical Exam Whole life insurance. Your premium never goes up. The No Medical Exam Whole life policy has a cash value as well as a dividend if the company performs well. The cash value is guaranteed and also earns a minimum amount of interest. Dividends are not guaranteed. In our comparison of No Medical Exam Whole life vs No Exam Universal Life we must consider that the No Exam No Medical Exam Whole life policy dividend can be used to purchase paid up additions...which are really small paid up policies purchased each year which are added to the base policy. These paid up additions increase your death benefit and also have cash values. The dividend can be paid in cash or they can be used to reduce premiums. With all these benefits when we look at No Medical Exam Whole life vs No Exam Universal Life we must also consider that there is a certain rigidity built into the No Medical Exam Whole life policy. That is the policy in a nutshell. It is a good policy but quite inflexible.
No Exam Universal Life
No Exam Universal Life provides a little more flexibility than the No Exam Whole life policy. Life insurance buyers today tend to favor No Exam Term Life insurance. No Exam Universal Life is built on a term base. It is basically a term policy with an added savings element. You maintain a level death benefit but you also have the option of reducing the death benefit whenever you like. You can also increase the death benefit but you may be required to provide evidence of insurability at the time you choose to make the change. The premium you pay usually remains level but you do have the option of reducing it. Here is where it is flexible. Let us suppose you bought a No Exam Universal Life policy and you applied 30% of your yearly premium to pay for death benefit and 70% of it to saving. You may decide 5 or 10 years down the line that you don't need as much life insurance as you now own. You can reduce your death benefit and apply the applicable cost to your savings plan. Let us suppose, on the other hand, you decide that that you need additional life insurance 5 or 10 years down the line. You can reduce the amount of premium applied to savings and use it to purchase the additional term insurance you need. That means there would be no need for any additional outlay in premiums.
You must, however, bear in mind that you have to qualify for the additional insurance. The life insurance company may ask for a medical examination. No Exam Whole life vs No Exam Universal Life...those are the basic differences. You may add the waiver of premium rider to either policy. The cost for the rider for the No Exam Universal Life policy is much lower than of the No Medical Exam Whole life as the premium for the rider only applies to the portion of the premium applied to death benefit. With the No Exam Whole life policy the entire premium is waived in the event of disability. You may also add the accidental death benefit rider to either policy.
Request Your Free Quote Now
american memorial - united home life
