No Test Life Insurance - Is "No Physical Exam Whole Life" Really A Good Deal For Our Parents?

No test life insurance is better known as "nocauses such as a heart attack, stroke, etc. It
physical exam whole life." This means that the lifemeans that for limited period of time you won't
insurance company is willing to sell you a "Wholereceive 100% benefit from the policy until a
Life" insurance policy without requiring you to getcertain amount of time has passed. This is known
a physical exam.as an "exclusion" period.
You may have seen some of the commercials onExclusion periods normally last two years, after
TV talking about how they pay for their lifewhich, the policy will take effect in full and you'll be
insurance coverage with their "spare change"covered just as you would by a standard Whole
saved in a jar every day?Life policy.
There are drawbacks to these types of policiesSome other stipulations that would possibly (likely)
that you, the consumer, should be aware ofexclude you from insurance coverage would be
though before you buy one.participating in dangerous activities such as sky
Most of these policies are modified to meet adiving, race car driving, bungee jumping, scuba
certain set of criteria and are not standard Wholediving, mountain climbing or anything else
Life Insurance policies. As a matter of fact, if youconsidered to be a dangerous activity.
read the fine print, you may find that some ofPrices for some of these policies can be very
these "Whole Life" policies actually start out asexpensive and you should always get a second
what's known as an "accidental death" policy.opinion before buying one. You normally have a
Accidental death policies only pay a death benefitthirty day review period in which you may cancel
when the insured person dies from an accidentalthe policy and get a refund.
cause, not a natural cause.The bottom line here is that no test life insurance
This is not to state that the policy owner is notmay not be all that it's built up to be.
covered at all if they pass away from natural