No test life insurance is better known as "no physical exam whole life". This means that the life insurance company is willing to sell you a "Whole Life" insurance policy without requiring you to get a physical exam.

 

You may have seen some of the commercials on tv talking about how they pay for their life insurance coverage with their "spare change" saved in a jar every day?

There are drawbacks to these types of policies that you, the consumer, should be aware of though before you buy one.

Most of these policies are modified to meet a certain set of criteria and are not standard Whole Life Insurance policies. As a matter of fact, if you read the fine print, you may find that some of these "Whole Life" policies actually start out as what's known as an "accidental death" policy. Accidental death policies only pay a death benefit when the insured person dies from an accidental cause, not a natural cause.

This is not to state that the policy owner is not covered at all if they pass away from natural causes such as a heart attack, stroke, ect. It means that for limited period of time you won't receive 100% benefit from the policy until a certain amount of time has passed. This is known as an "exclusion" period.

Exclusion periods normally last two years, after which, the policy will take effect in full and you'll be covered just as you would by a standard Whole Life policy.

Some other stipulations that would possibly (likely) exclude you from insurance coverage would be participating in dangerous activities such as sky diving, race car driving, bungi jumping, scuba diving, mountain climbing or anything else considered to be a dangerous activity.

Prices for some of these policies can be very expensive and you should always get a second opinion before buying one. You normally have a thirty day review period in which you may cancel the policy and get a refund.