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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

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Too much life insurance?

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If in doubt, please send a new question or ask for an update.

Q: I was declined for $100,000 term life insurance when I applied online. The application was approved at first and then I submitted my credit card information. Then I got a message saying I had exceeded the maximum amount of coverage and so my application was declined.

A: Life insurance companies that issue online life insurance without medical information co-operate with each other so that the maximum amount of coverage issued does not exceed the amount of any single company. For example, if the maximum offered without a medical exam is $250,000, it is not possible to go to three different companies and apply for $100,000 each. This is a standard insurance underwriting procedure that limits risk for the insurance companies but now Internet technology and the national Medical Information Bureau database make is possible for insurance companies to check this information quickly when you make an online application. If you do not have any significant health problems, just go to your state page at and select any of the life insurance companies listed under the “Iquote” system. They all require a paramedic exam (at their own expense) but will be happy to issue the coverage. If you have a specific health concern it would be best call OnlineAdviser for the best insurance policy that does not require a medical exam and would not be subject to the maximum underwriting limits.


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