Life Insurance Questions

[thefed]

This goes with my health insurance thread. Some things have happened in my family recently that made me realize i need to be on the ball. My next thread will be about a will!

I want to get a small (150k) life insurance policy. i want it to be for at least the next 15 years (by then, the house is paid in full and i'll put the old lady on the deed).

I dont want to have to get blood drawn, a physical, etc etc for personal reasons. Im not terminally ill or anything, but i just dont want it.

Is there any plans out there that will cover you based on a questionnaire and no phyical?



Thanks

 

[Martha]

I think that there are a number of insurance companies who will insure young people like you without requiring a physical exam, especially if you aren't getting a lot of insurance. But, they still may require a blood and urine test.

 

[Rollie]

I work in the financial services industry...and blood and urine tests are required for all policies that we sell.

 

[thefed]

thanks. a simple google search revealed seveal no med exam term policies for 150k that would cost maybe 20/month for me....not too bad. i'd like a policy though that builds some cash value, so i'll keep looking

 

[FinanceDude]

Can you buy group coverage through work? No evidence of insurability, but no portability either........

Zurich Life has 10-minute underwriting, and can close a smaller policy in minutes.........not sure if they have cash value life........

Just curious why you want a cash value policy.........expensive, and the dividends are pretty much eaten up by agent's commissions in the first 5 years or so..........

 

[brewer12345]

thefed, if you don't want to give blood, urine, etc. you can almost certainly find a policy that will fit your needs, but you will pay more for it than otherwise.

Don't bother with a cash value policy or a "return of premium" policy. They are ripoffs. Just buy a 20 year level term policy.

 

[FinanceDude]

Some companies will do a saliva swab in lieu of blood work. Just curious, if you don't have any medical issues, why not get blood drawn??

 

[mickeyd]

I dont want to have to get blood drawn, a physical, etc etc for personal reasons. Im not terminally ill or anything, but i just dont want it.

You may be able to find a company that deals in high-risk cases to insure you, but expect to pay dearly for avoiding an exam and blood draw.

Your refusal to be examined or give blood (a very common, easy practice), is a red-flag for any life insurer. Here's a concept that you may have discounted, insurance companies are in business to make money and not having to pay a death claim is the main way that they make money. They will only accept applications from those that will not die soon. Answering simple medical Q's and giving blood sample is the main way that you will get approved for coverage.

It is that simple.

 

[thefed]

why is it that whole life, or ROP policies are regarded as trash? I had a rep out here explain the process to me, and supposedly if i didnt croak, and didnt miss any payments, they'd give me all my $$ back at the end


whats the disadvantage? Sure it was 10 bucks more/month....but it seemed to make sense to me.

 

[brewer12345]

why is it that whole life, or ROP policies are regarded as trash? I had a rep out here explain the process to me, and supposedly if i didnt croak, and didnt miss any payments, they'd give me all my $$ back at the end


whats the disadvantage? Sure it was 10 bucks more/month....but it seemed to make sense to me.

If you spreadsheet either of these products (paying attention to the fine print), they are inferior to buying term and investing the rest of the money in CDs. ROP specifically sucks because you typically get nothing back until you have held the policy for many (10+) years. Do you know how many of the policies will be cancelled by then? The vast majority, and all the extra money os down the rathole.

Just look at term, and seriously consider going the blood/urine test route.

 

[FinanceDude]

why is it that whole life, or ROP policies are regarded as trash? I had a rep out here explain the process to me, and supposedly if i didnt croak, and didnt miss any payments, they'd give me all my $$ back at the end


whats the disadvantage? Sure it was 10 bucks more/month....but it seemed to make sense to me.

I did an in-depth examination of the IRR (internal rate of return) for 65 life contracts from the 12 largest insurance companies in the US. What I found was the real IRR in these contracts was between 1.5-2.0 percent, and this was at a time whe all the companies were trumpeting 8-10% dividends.........

Look closely at a policy illustration on a CV policy............you'll see how LITTLE is put into the CV part in the first 6-7 years...........agent compensation being the main reason.

As a wealth transfer vehicle for large estates, CV can work pretty well. For most folks, a large amount of term to get them through the "scary years" is a better idea............

 

[thefed]

If you spreadsheet either of these products (paying attention to the fine print), they are inferior to buying term and investing the rest of the money in CDs. ROP specifically sucks because you typically get nothing back until you have held the policy for many (10+) years. Do you know how many of the policies will be cancelled by then? The vast majority, and all the extra money os down the rathole.

Just look at term, and seriously consider going the blood/urine test route.

i never thought of that (investing the 'extra' i'd put into another type than term)

thanks