After years of deliberation, I finally secured an affordable life insurance policy without a medical exam. Back in January 2012, I was 34 and decided to buy a 10-year, $1 million term life insurance policy, as I had a mortgage of the same amount. I wanted to ensure that if anything happened to me prematurely, my wife wouldn’t be burdened with our financial obligations. At that time, we were unsure about having children, and I was about to take a significant pay cut, so financial security was paramount.
Unfortunately, my initial term was not long enough. Despite paying off the big mortgage in 2017 and buying another house in 2014, we welcomed our first child in 2017. Around this time, I underwent a medical check-up and was diagnosed with severe sleep apnea, which required expensive treatments and led to a dramatic increase in my life insurance premiums.
In 2017, after our son was born, I inquired about extending my policy for another 20 years. The updated terms, influenced by my new medical diagnosis, would have raised my monthly premium from $40 to $450 at age 40—a price I was unwilling to pay. My existing 10-year term policy was set to expire in January 2023, giving me some time to explore other options.
I considered converting my policy to a universal life insurance plan, but the costs were prohibitive, with premiums much higher than my original $40/month. Ultimately, I decided to invest the difference for greater flexibility. Around the same time, my wife managed to find a new $500,000 policy without a medical exam, significantly cheaper than her previous one, which inspired me to seek similar alternatives.
Determined to prove that my sleep apnea was mild, not severe as initially reported, I underwent another sleep study. This new study, coupled with observations from my wife, confirmed the mild nature of my condition. With this new information, I applied for life insurance again and was presented with two options. I chose Savings Bank Life Insurance (SBLI) which offered me a $750,000, 20-year term policy without a medical exam for $110.24 a month.
This premium, though not the cheapest, was significantly more affordable than renewing my previous policy. It also provided substantial coverage for my current family situation, supporting not just my wife but now two young children as well. Had I opted for a 30-year, $750,000 policy back in 2012, the rates might have been only slightly higher at the time, showing that my original short-term policy was perhaps short-sighted.
As I plan for the future, the primary goal is to ensure that our mortgage debt falls below $750,000, aligning with our life insurance coverage. Moreover, I’m considering applying for an additional $250,000 term policy to reach the $1 million coverage I feel is necessary for complete peace of mind.
In summary, this journey through various insurance options underscores the importance of carefully predicting future needs and staying informed about personal health conditions that might affect insurance terms and premiums. For anyone navigating similar challenges, it’s crucial to continuously evaluate your insurance strategy in light of changing family dynamics and financial responsibilities.
