Question by N0_white_flag: Are the on-line “no medical exam required” life insurance policies/companies legitimate?
My husband, being the impatient person he is, has decided to appease my request to get life insurance on himself with an online policy. The company is American Life Direct and the policy is written by Liberty Life. I know the premiums are higher. That’s his decision. What I’m concerned with is whether or not he’s really insured. I want him to just go through the regular procedure, like I did. I mean God forbid (and I really mean that) something should happen to him, not a good time to find out you were scammed. I just don’t unerstand how you can answer a few questions, give your credit card info and have a policy. No exam, no verifying, no medical records.(except MIB) Mine took almost 3 months of processsing before I actually got a policy and was insured! At the end before you sign it said things like “Not insured by the FDIC” Is this normal for an insurance company? He didn’t sign, yet. Any insurance professionals who can advise? Thanks for any help you can offer.
Why would someone choose this over a regular company?
Best answer:
Answer by aaron p
Why try to appease your concerns with a group of people who clearly have little to no experience with the company? If you don’t get the answers you need when you talk to them, move on. There are plenty of simplified issue programs out there that insurance brokers have access to from Fidelity Life Association, Mutual of Omaha, Shenandoah, and plenty of others.
FDIC only covers deposits in banks, so no life insurance is covered by FDIC. There is a state guarantee association that backs insurance contracts. Limits vary state to state.
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Well, Liberty Life is a real company. But you don’t know if the website he’s buying through is forged or not. That’s one disadvantage of buying online.
Just because you answer a few questions and have a life policy, does NOT mean you’re going to get paid if your hubby dies in the next few years. MOST of the time, there’s small print and conditions – that VERY VERY few people read, that basically say, if you didn’t tell us something, and you die of it, you’re not covered. In other words, they verify AFTER you put the claim in, and deny if they find something.
Insurance policies are NOT insured by the FDIC – bank deposits are.
Most of the people who buy coverage with really high rates and really low limits, over the internet, do it because they don’t think they can qualify for a “real” policy. They just don’t realize, that come claim time, THIS one isn’t going to pay out, either.
Each person has their own opinion about that, obviously.
Yes, if you check with the actually companies issuing the life insuranc epolicies with no exam required, they are legitimate companies.
The policy you refer to is issued through Liberty Life Insurance Company, which is rated “A” Excellent by A.M. Best for financial strength. Liberty Life Insurance Company was established in 1905. I would feel comfortable with that rating and the fact the company has been around for more than 100 years, I guess some would say that they are indeed legitimate.
The other insurers offering no exam life insurance may or may not have the high financial strength rating of Liberty Life Insurance, but they may still be legitimate.
Also, no exam life policies do charge more, because they accept some people who may not be approved by other insurers requiring a physical exam to get accepted.
Please understand, more insurers are offering no exam life insurance online each year. This is the trend in life insurance companies.
Some agents may not like this, because the carriers are offering coverage direct to the insureds.
Always review the terms and conditions of your policy before you buy, and understand all exclusions.
The bottom-line is this – you will pay more for this policy; however, the insurance company may very well be legitimate.
The idea of no exam life insurance is that it’s quicker, easier and there are no high-pressure sales pitches over the dinner table from an agent.
Your husband may be able to qualify for up to $ 250,000 coverage through an “A+” rated life insurer that is legitimate at http://www.term-life-online.com/term-life-insurance-no-exam.html
I hope that helps! Best of luck to you.
Liberty Life deal is legit. You can buy a policy online and not have to go through the traditional underwriting procedures of other companies.
The cost is more expensive because of the convenience and the possibility that the insurance company is taking on an unknown risk.
As long as he did not commit fraud to get the policy, the company will pay the claim.