The short answer
Non medical life insurance isn't a separate product. It's a term life policy, and for you the difference is mainly how carriers review the application and set the rate. Rules vary by carrier, so comparing several through an independent agent is the simplest way to find a good fit.
This guide answers the most common questions about medical vs non medical life insurance.
There are two main kinds of life insurance: term and permanent. Whole life is the most familiar permanent kind.
Here is a clear comparison of term vs whole life insurance so you can pick the right fit.
Part of our complete guide: Term Life Insurance: The Complete Guide.
Quick answer
Term: lower cost, set length, no cash value. Whole life: lifelong coverage and cash value, higher cost. Convertible term keeps the door open to permanent coverage later.
MarketView Agency is an independent insurance agency (National Producer Number 18345705).
On this page
- Which type of coverage fits you?
- Mistakes to avoid
- Is non medical life insurance a good fit for you?
- Difference between term and whole life: should you buy term or whole life?
- What is term life insurance?
- Can you change term into whole life?
- What affects the cost of term life insurance?
- Who term life insurance is for
- Frequently asked questions
Which type of coverage fits you?
| Feature | Term life | Whole life | Final expense |
|---|---|---|---|
| How long | 10 to 30 years | For life | For life |
| Builds cash value | No | Yes | Yes, small |
| Typical use | Income, mortgage, children | Lifelong needs, heirs | Funeral costs, final bills |
| Underwriting | Varies by carrier | Varies by carrier | Simplified or none |
Many people combine types: term for the years the need is largest, and a smaller permanent policy for needs that last.
Mistakes to avoid
- Canceling coverage before new coverage is approved.
- Buying more than the budget can keep paying.
- Comparing only one carrier.
Compare rates from several carriers in about two minutes. Free, no obligation.
Is non medical life insurance a good fit for you?
It can be, when there's a clear need: someone who depends on you, a debt or cost you don't want to leave behind, or a goal the policy is designed for.
- Often a good fit: you who want coverage they understand and can keep paying.
- Often a good fit: anyone who wants to compare several carriers before choosing.
- Maybe not: if existing coverage already meets the need.
- Maybe not: if the premium would strain your budget; a smaller amount may fit better.
Difference between term and whole life: should you buy term or whole life?
Term is temporary and affordable. Whole life is permanent, builds cash value and costs more. Neither is better in every case. The right choice depends on how long the need lasts and how much you can comfortably pay.
If you are unsure, a convertible term policy keeps your options open. You can switch part of it to permanent coverage later without new health questions, within the policy's window.
What is term life insurance?
Term life insurance covers you for a set number of years, such as 10, 20 or 30. If you pass away during the term, the policy pays a death benefit to your beneficiaries. If you outlive the term, the coverage ends and nothing is paid.
Because it does not build cash value, term is usually the most affordable way to buy a large amount of coverage. It fits needs that have an end date: a mortgage, raising children or replacing income until retirement.
How to get covered in 3 steps
- Check your rate. Pick your state and answer a few quick questions about the coverage you want.
- Compare carriers. A licensed agent compares term life insurance options from several insurers and explains the trade-offs.
- Apply and get covered. Many applications take one phone call. Coverage starts once the policy is issued and the first premium is paid.
Can you change term into whole life?
Most term policies can be converted to a permanent policy for some or all of the amount, without a medical exam, within a set window. This protects you if your health changes.
- Check when the conversion window closes, often at a certain age or policy year.
- Check which permanent products are available for conversion.
- Expect a higher premium for permanent coverage, based on your age at conversion.
What affects the cost of term life insurance?
- Age at purchase. The younger you are, the lower the rate for the whole term.
- Health and history. Conditions, medications and family history affect your rate class.
- Tobacco and nicotine. Usually one of the biggest price factors.
- Coverage amount. More coverage costs more, though the cost per thousand often drops at higher amounts.
- Term length. Longer terms cost more per year.
- Riders. Optional add-ons raise the premium.
- Carrier. Pricing differs between insurers for the same person.
Because insurers weigh these factors differently, comparing several carriers is the simplest way to find a fair price.
Who term life insurance is for
Often a good fit
- Parents with children at home. Homeowners with a mortgage. Anyone whose income supports others. People who want a lot of coverage at a lower price.
Maybe not the right fit
- People who need coverage for life, such as for final costs or estate planning. People who want cash value they can use later. In those cases, permanent coverage may fit better.
