 TITLE: What Is No-Exam Life Insurance? CONTENT: How Does Life Insurance Work?\n-----------------------------\nWhen you purchase a life insurance policy, you're typically purchasing protection for your family or other loved ones. Your policy names a beneficiary or beneficiaries who receive the policy's payout after you die, as long as the policy remains in effect.\nTwo basic types of life insurance are available:\n*   **Term life insurance:** A term life policy covers a certain stretch of time, such as 10, 20 or 30 years. If the policy is in effect when you pass away and your payments are up to date, the beneficiaries get the death benefit (such as $25,000) that you selected when you bought the policy. If you're still alive when the policy's term expires, the policy no longer stays in effect unless you renew the coverage on an annual basis at a higher cost.\n*   **Permanent life insurance:** As its name suggests, permanent life insurance can offer coverage for as long as you're alive. Types of permanent life insurance include whole life and universal life. These types of insurance offer a death benefit, as well as cash value, which acts similarly to a savings account. The cash value of a permanent life policy grows over time on a tax-deferred basis and may be used while you are still alive. Permanent life insurance is significantly more expensive than term life.\nBefore extending coverage to you, life insurers typically ask questions about your health, including your medical history and your family's medical history.\nThe insurer will also often require a medical exam. Among other things, the person administering the exam likely will record your height and weight, check your blood pressure, take blood and urine samples for lab tests, and conduct other screenings. You'll probably be checked for use of recreational drugs and cigarettes or other products with nicotine.\nIf a life insurance medical exam determines you're in good health, the insurer will deem you a relatively low risk and you'll likely enjoy lower premiums. But if the exam turns up serious medical issues, such as high blood pressure or hepatitis, you're considered higher-risk and may be hit with high premiums or even be rejected for coverage.\nWhat can you do if your health is not so great and you don't want to submit to a medical exam? You may be able to purchase a no-exam life insurance policy. END