Types Of Life Insurance No Medical Policy Available In The Market

If the decision to buy term or whole life insurance seems complicated, then you will most likely hate what comes next. There is a new form of life insurance called the life insurance no medical that has recently been introduced to serve the consumers need. As the name suggest, it offers what a normal life insurance offer minus the medical portion. Some examples of life insurance no medical policy:

o Deposit term Insurance

Deposit term insurance is a level term life insurance no medical policy that has a much higher premium for the first year than for subsequent years. The initial premium is significantly higher than the average premium needed to cover the cost of mortality during the term period. The excess front-end premium, the deposit, is then set aside to earn interest, and these dollars will be applied to reduce the premium payments required in the following years. The premium levels are set so that the entire deposit will be exhausted when the final annual premium is paid. In effect, this arrangement provides a method of paying a portion of the premium in advance.

o Industrial Life Policy

The industrial policy is another form of life insurance no medical policy written for a small amount, usually $1,000 or less, and the premiums are payable as frequently as weekly. This coverage derives its name from the fact that it was originally sold in England to the industrial class of factory workers. If you bought an industrial policy, you would determine how much you could pay each week, and this would determine the face amount of coverage. Traditionally, a company representative would call on the policy owner each week, usually at home, to collect the premium. The policy benefit usually was used to pay for final illness and burial expenses.

o Credit Life Insurance

If you are paying off a loan or have some credit card debt to contend with, your unexpected death could create serious financial problems for your family. Credit life insurance no medical policy provides that, in the event of your death, the outstanding balances will be paid off in full. Credit life insurance can be written on a group basis or in individual credit life polices. It usually is written as a decreasing term type of coverage, so the amount of insurance shrinks as the amount of the debt shrinks. Level term insurance also may be written, which would remain level for the term of the policy. With this sort of insurance, you pay the premium. If you die, the benefits are paid to your creditor, to reduce or extinguish your debts. It is not usually the most cost-effective form of insurance. These policies are often added to the finance contract for a major purchase so that, the insurance premium is being financed along with the item being purchases.

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