Affordable No Exam Life Insurance for Smokers – How to Apply

The burning topic of discussion on every level is how to quit smoking. This is not only a decision that will benefit your health but also save significantly. It will also result in the reduction of lab costs, medical care costs and a surge in insurance premiums. Specific studies have proved that quitting the habit of smoking can help you save $10,000 a year on your term assurance. However, you can get affordable no exam life insurance for smokers, for which a competent insurance agent can guide you on how to find the cheapest life insurance rates for smokers.

What is Term Life Insurance?

Term life insurance is a form of life insurance that is active for a fixed period of time (popularly referred to as the term). These plans are easy to understand and provide financial protection that your family will need if you are no longer around.

The product helps you during your prime earning years. Your loved ones don’t just lose you but they also lose the financial future you are building for them. Getting term life insurance ensures that your family’s future is safe no matter what.

Term Insurance without Medical Test

Certain Life insurance companies are there which offer term life plans that don’t require you to pass through any medical test while purchasing the policy. It considers your age and the cover you need.

Once you apply for the product, it’s deemed as substandard in risk because it is devoid of any medical details. To be precise no medical exam term life insurance requires you to answer all health-related queries as negative. There are a lot of advantages as well as disadvantages of these kinds of products which may crop up later looking at the ease at which they are approved.

No Exam Term Assurance for Smokers

The criteria which the Life insurance companies follow while determining quotes are varied and depends from company to company, but the only factor that is common among all is the penalty which a smoker has to pay in line with smoker insurance rates. People who smoke are charged considerably higher amounts which go up to $1,5000 more from people who are non-smokers.

People who are long-term quitters are benefitted the most. If you are planning to take a cover and quit smoking for a specified period of time till the medicals are done, this will not get you a single penny. As per the research it takes at least five years of timebefore you are considered a non smoker after quitting, to reach the quotes which a non-smoker gets.

The quotes which the insurance companies provide for whole life insurance for a smoker are predominantly high by 351% compared to smokers. However, smokers in somestates have to pay as high as 363% as in Montana or it can be slightly lower as 297% in New York for a lifetime plan. So, each state has their individual regulations, where the state sets the prices.

Presently if you are a smoker, the average rates per annummight vary from$2,025 to $1,505 for men and women respectively for a 20-year policy with a sum assured of $500,000. Once you plan to quit smoking the changes and reductions are automatically visible. After 2 years it reduces to $670 for  menand $543 for women. Research shows 80% of ex-smokers who discontinued tobacco for at least 2 years lead a good life. Insurance companies also tag those as diminished risk category consumers and reduce the premiums.

Facts that Smokers and Ex-Smokers Should Know About Life Insurance Policies:

1. Avoid lying about smoking on life insurance and the number of cigarettes you smoke as blood and urine tests will reveal every detail. If you are a non-smoker, your company will verify against prior information of any other insurance for which you have applied. Misleading information is considered as fraud and jeopardizes the benefit that your family members may receive.
2. It is a standard practice that once the policy is issued people take up smoking again. That is true for any medical problems you develop after the policy has gone into force.
3. You can at any time request your provider to reduce the rates once you have stopped smoking at least for 2 years. The company will reevaluate and may offer you a better non-smoking rate in regardless of whether you have any other medical problems.

People have a misconception that no medical exam policies make them eligible automatically, which is not the case. Companies run through your medical details from the medical information bureau which makes them aware of the medication you are taking. They also confirm your details from driving records.If any discrepancies are noted, reports are requested to verify that you are at risk.

The Clientele of No exam Insurance

• People with medical exam phobia
• No time to go for medical exams
• People who require collateralizinga loan in a hurry
• Individuals who need a reduced amount of life insurance policies

Types of No Exam Life Insurance policies

1. Simplified Issue Term Life Insurance: Death benefits ranging from $5,000 to $350,000 can be obtained at the age of 21to 65 years with a term ranging from 10,15 and 20 years.
2. Simplified Issue Universal Life (UL): Death benefits within the $25,000-$250,000 range can be bought between ages 21-65. Cost and death benefit is fixed for life.
3. Level Death Benefit Whole Life: Death benefit and value is fixed for life. Differences can be applied up to age 80. Smaller death benefits range from $5,000 to $50,000.Clients who qualify are with type II diabetes, blood pressure issues and cholesterol medications.
4. Graded Benefit Whole Life: These policies cover people with existing medical history.Due to this, the range of pricing is a little bit on the higher side. The death benefit is a reduced one here with a 40% payout during the 1^st year and 75% in the 2^nd Cardiovascular disease is an approved condition here.
5. Rapid Decision Senior lifetime:Death benefits on this policy ranges from $10,000 to $25,000. It can be purchased between ages 65 to 85, underwriting guidelines are as level benefit.
6. Guaranteed Issue or “GI” Policies:these plans have the unique feature of no medical questions asked. They can be purchased at any time or in any advanced stage of illness. The clientele includes people who are not eligible for any other low-cost cover available insurance in the market due to their medical conditions. Death benefits are obtainable in the range of $5,000 to $25,000.

Affordable No Exam Life Insurance for Smokers Can be Yours

So, it becomes quite apparent that if you are a smoker, you can still have life insurance, no exam life insurance being the most likely. No doubt, you may have to pay hefty premiums compared to standard rates, but at least you will be covered. You probably never realized that this is possible. Contact a competent insurance agent today to initiate the process of getting a life insurance policy, even if you are a smoker.