Non-medical life insurance policies are often misunderstood. The following are five of the most common non-medical life insurance myths:
Myth 1. Non-medical life insurance means that there are no medical tests or health questions. Non-medical life insurance policies are broken down into two categories, guaranteed issue life insurance, which has no medical tests and no health questions, and simplified issue plans, which have non-medical tests and three to 12 health questions.
Myth 2. All no medical life insurance plans are priced the same or very similar. Guaranteed issue policies are generally much more expensive than simplified issue policies, and even among simplified issue policies, there can be sharp differences in premiums -- often up to 50% or 60%.(Non-Medical Life Insurance Myths continued...)