The following post was provided by a guest contributor. If you are interested in being a guest contributor for My Money Design, please feel free to contact me.
Why do we put off buying life insurance? Is it because it’s complicated, we’ve heard bad experiences about it, we don’t know which type to buy, or how much we need? Believe it or not, for some people it is simply because they don’t want to go to the doctor or have their blood drawn.
Even though that may sound silly, but it only takes one excuse to keep you from doing what you should. Fortunately the industry offers a product known as no physical life insurance. By not requiring a physical, you can just buy the life insurance online or over the phone without any medical intervention at all.
How No Physical Life Insurance May Benefit Your Situation:
If you haven’t been told you enough already, by simply being an adult with a family (especially with kids), you have a financial responsibility to them. And your life insurance policy at work is more than likely not going to cut it. If you really want to protect your family from financial hardship, then you need to get a life insurance policy that is at least 10 to 12 times your annual household income.
One of the nice things about getting a policy without a medical exam is that it is generally term life insurance as opposed to permanent (please feel free to read my series on which type of life insurance is better). As someone who used to own a variation of permanent life insurance and wasted of money in the process, I can assure you that term is the way to go!
Generally because of the lack of medical investigation, life insurance policies without a physical have a limitation on how much coverage you can purchase. Use an insurance comparison tool like the one from Choosi to evaluate your options. But there is a small loop hole to this: You can own multiple policies. Usually an insurance provider will ask you first how much insurance you already have, but if they are okay with the other policies you have, then there is no issue. Of course keep in mind that owning multiple policies will generally be more expensive than simply owning one policy with a high amount of coverage.
- Which is Better – Term or Permanent Life Insurance? – Part 1
- Which is Better – Term or Permanent Life Insurance? – Part 2
- Optional Extras to Consider for My Home Contents Insurance
Image courtesy of David Castillo Dominici / FreeDigitalPhotos.net