Life insurance policies are one of the most important purchases that you’ll make for your family. It’s the only way to ensure that they will have the money they need if you were to pass away. Nobody wants to think about their own death, but making a good life insurance choice is vital. There are dozens and dozens of different insurance companies to choose from, how do you know if you’re making a good choice?

If you go to Stonebridge Life Insurance’s web site, you’ll see that they are offering a no exam/purchase online term life insurance policy.  You see that, and if you may have any kind of health issues, such as diabetes, you’d think, “no exam?  I can buy this online right now?  Let’s do it!”

And if you, for example, were a 38 year old non-smoking male, you can get a 20 year, $200,000 term Stonebridge Life Insurance policy for only $61/month.  Assuming it’s a level term life insurance policy; it sounds pretty good doesn’t it?  But, if you look into the small print (always, it’s the dreaded small print) you will see that the “20 year” term is actually an annual renewable term (ART) which means that nice $61/month is only for the first year.  The premium cost rises EACH year.  I call that initial $61/month a teaser rate to suck you in.  And that rate isn’t even such a great bargain.

I compared the price with some other companies.  I found that if I am in perfect health, and agree to a medical exam, I can pay $17.50 for the same product.  But let’s say I have issues, and am not willing to take that exam, here are some of Stonebridge life Insurance’s competitor’s prices for life insurance no medical exam:

$32/month – American National (ANICO)
$33/month – Assurity Life
$33/month – United of Omaha
$59/month –  Fidelity Life

With the last one listed, from Fidelity Life, there is only a two day turnaround to become insured, amazingly fast.  And, they are level 20 year premiums – you know up front exactly what this term life insurance policy will cost you for the next 20 years.  The same cannot be said about the Stonebridge Life Insurance policy described above.

To make this offer from Stonebridge Life Insurance even stickier, I called them and asked for the price schedule on this policy.  They refused to give it to me.  I was told that instead, I have to apply and receive the policy in the mail in order to see the actual twenty year cost for this policy.  Seems crazy and very inconvenient to me…so I asked why.  Their answer was that they give the customer a 30 day “free look” period in order to evaluate and if necessary, cancel the policy.  Hmm, I wonder who would want to buy a life insurance policy with no idea of the cost for nineteen of the twenty years on the policy.  I’m thinking, not many, though there are those few that feel they have no other options, such as those looking for the best life insurance for smokers, but there are options, keep shopping.  What Stonebridge Life Insurance needs to do is call this policy what it is, an annual renewable term policy.

There are a lot of people out there with health complications or in poor health that think they can only get a no medical exam policy, instead of a traditional plan with medical underwriting. In just about every case, this isn’t true. There are only a few cases where applicants will be denied insurance coverage. There are several other options other than no medical exam policies, especially from Stonebridge.

If you’re looking for the most affordable insurance coverage, a medically underwritten term life insurance policy is going to be the best option. With a medically underwritten policy, you will be required to take the medical exam, but it could save you hundreds, or thousands of dollars on your insurance coverage throughout the course of the policy.

If you’re choosing a no medical exam policy because of a misunderstanding about what it consists of, let us clear that up for you. After you complete the initial paperwork, the insurance company is going to schedule a time for a paramedic to come to your house and do the exam. During the exam, the insurance company is going to want to know your weight, blood pressure, cholesterol, and they will also require a blood sample and urine sample. The samples will show if there are any severe health complications that you didn’t tell the insurance company about on your application. The results from the short exam are going to have a major impact on how much you pay for your underwritten plan.

If you decide to go with a plan that has a medical exam (and I suggest that you do), there are several things that you can do to get the lowest rates possible. The best way to do that is by losing any extra weight. Being overweight or considered obese, is going to have drastic effects on your monthly rates, in fact, it could cause your premiums to double. Before you apply for insurance coverage, take some time to lose those extra pounds that you’ve gained through the years.

Start a healthy diet and a regular exercise program. Getting enough daily activity and cutting back on all the junk food is going to help you shed those pounds, lower your cholesterol, and lower your blood pressure.

The best way to get the lowest insurance rates is by comparing quotes from different companies. Every insurance company is different, and they all have varying ways that they calculate coverage rates. You would compare the prices if you were shopping for a car or a TV, why wouldn’t you do the same with insurance policies? Because there are thousands of different insurance companies, you could spend days talking to different agents, or you can let us do the work for you. Simply, fill out the quote form on the side with your information and all the quotes will come to you.

Learn more about some other companies and their products by looking at more of my reviews such as Banner Life InsurancePrimerica Life Insurance Company,  New York Life Insurance and AARP InsuranceHERE.

Sam Goldsmith

Sam Goldsmith is the principal broker of Goldsmith Insurance Agency, an independent life insurance agency in Denver. He has helped thousands of consumers all over the country—including diabetics—find affordable life insurance with the best-rated companies. He can be contacted at 877-400-0484 or through his website at www.goldsmithinsurance.com.