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The Fool: What is your favorite techno gadget?
lifeinsuranceno: One reason for purchasing no-exam life insurance is the speed of the application process. Usually, 4–6 weeks elapse between the application for a life insurance policy and the time it is issued. By eliminating or shortening the underwriting process, no-exam life insurance makes it possible to issue a policy within a matter of days.

Another purpose of no-exam life insurance, however, is to enable applicants who would otherwise be uninsurable to obtain coverage. Because of health complications or a combination of health issues and advanced age, an individual may be denied coverage for ordinary life insurance, but that individual can still obtain coverage through no-exam life insurance.

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The Fool: What technology do you wish the world had but doesn't yet?
lifeinsuranceno: The price one pays for life insurance is based on his or her life expectancy: those with a good prognosis pay lower life insurance rates. Usually, an insurer surmises a given applicant's life expectancy based on his or her medical examination, but in the case of nonmedical issue life insurance, this is not possible.

Without an up-to-date medical evaluation, your insurer has at best only a scant idea of your life expectancy, and that imposes a substantial risk on the company. The insurer is obliged to charge more for coverage in order to manage this risk.

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The Fool: What's the best restaurant you've ever been to? (Include name, location, and average bill for two.)
lifeinsuranceno: If you’d like to read about the various life assurance products available to you, have a look at our life insurance guides in order to learn what the best life insurance policy is for you.

There are many different types of life insurance policy, and knowing what you’re looking for can make finding the right product for you a great deal easier.

Life insurance guide
Learn all about life insurance and find the policy for you

Saving money on life insurance
How to find a great deal on your life insurance

Do I need life insurance?
Read our guide to see if life cover is right for you

Life insurance for women
Is life insurance for women different to mens?

Life insurance for smokers
Read about how smoking can affect your premiums

Life vs mortgage Insurance
Is life cover right for you? Click to find out.

Life insurance and tax
How tax can affect your life insurance

Frequently asked questions
The most common queries people have about life cover

Need Life Insurance Advice?
If you’d rather speak to somebody rather than reading, here at Moneysupermarket.com we have a dedicated team of live insurance advisors who can help you not only find a great life insurance quote for you, but also help steer your application from start to finish. Click here to read about our life insurance advice service.

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The Fool: Briefly review your favorite book.
lifeinsuranceno: Myth: Cash value life insurance, like whole life, will help me retire wealthy .
Truth: Cash value life insurance is one of the worst financial products available.

Sadly, over 70% of the life insurance policies sold today are cash value policies. A cash value policy is an insurance product that packages insurance and savings together. Do not invest money in life insurance; the returns are horrible. Your insurance person will show you wonderful projections, but none of these policies perform as projected.

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Example of Cash Value
If a 30-year-old man has $100 per month to spend on life insurance and shops the top five cash value companies, he will find he can purchase an average of $125,000 in insurance for his family. The pitch is to get a policy that will build up savings for retirement, which is what a cash value policy does. However, if this same guy purchases 20-year-level term insurance with coverage of $125,000, the cost will be only $7 per month, not $100.

WOW! If he goes with the cash value option, the other $93 per month should be in savings, right? Well, not really; you see, there are expenses.

Expenses? How much?

All of the $93 per month disappears in commissions and expenses for the first three years. After that, the return will average 2.6% per year for whole life, 4.2% for universal life, and 7.4% for the new-and-improved variable life policy that includes mutual funds, according to Consumer Federation of America, Kiplinger's Personal Finance and Fortune magazines. The same mutual funds outside of the policy average 12%.

The Hidden Catch
Worse yet, with whole life and universal life, the savings you finally build up after being ripped off for years don't go to your family upon your death. The only benefit paid to your family is the face value of the policy, the $125,000 in our example.

The truth is that you would be better off to get the $7 term policy and and put the extra $93 in a cookie jar! At least after three years you would have $3,000, and when you died your family would get your savings.

A Better Plan
If you follow my Total Money Makeover plan, you will begin investing well. Then, when you are 57 years old and the kids are grown and gone, the house is paid for, and you have $700,000 in mutual funds, you'll become self-insured. That means when your 20-year term is up, you shouldn't need life insurance at all—because with no kids to feed, no house payment and $700,000, your spouse will just have to suffer through if you die without insurance.
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