When looking for life insurance, you will likely come across the popular types of life insurance, term life, and whole life insurance policies. But what about no medical life insurance?
No medical life insurance is a special type of life insurance policy that does not require you to take a medical exam to qualify for coverage. It is perfect for those who want coverage but do not want to go through the hassle of a medical exam or because they have health conditions that could prevent them from qualifying for traditional life insurance policies.
So, if you want a stress-free way to get life insurance coverage from the best insurance companies in Canada, then a no medical life insurance policy may be right for you. However, no medical life insurance policies are typically more expensive than traditional ones, allowing you to skip the medical exam and get coverage much faster.
This blog post explains what no medical life insurance is, its pros and cons, and whether it is suitable for you or not. Read on to learn more.
What Is No Medical Life Insurance?
Simply put, a no medical life insurance is a life insurance policy that does not require a medical exam before you can qualify for coverage. It offers coverage without the need for medical underwriting.
You don’t have to be examined by a paramedical service or take a blood test, urine test, or vitals check for your blood pressure, height and weight. No medical life insurance saves you the hassle by excluding the body fluid sample collection and relies only on a questionnaire.
Most Canadians do not buy life insurance because of the time commitment for the underwriting process, their health issues, and iatrophobia (the fear of doctors). No medical life insurance takes away these and offers life insurance in its easiest form.
No medical life insurance is best for people who experience extreme distress and anxiety related to undergoing a medical examination, have a pre-existing or chronic illness, have a lifestyle factor that puts them at risk (e.g., smoking), or have a dangerous job or hobby.
However, the convenience of no medical life insurance comes at a cost. The premiums for no medical life insurance policies are usually costlier than traditional ones.
Types of No Medical Life Insurance
No medical life insurance comes in three different varieties, each with its level of scrutiny into your health and medical history, and it is reflected in your premiums.
Accelerated Issue Life Insurance
The accelerated issue life insurance is best for those who are in good health, but need don’t want to undergo a medical exam before getting life insurance. They may have to answer extensive questions about their health and lifestyle choices.
Also, accelerated issue life insurance approval may take up to four weeks. However, its premiums are affordable and similar to traditional life insurance policies. It also offers high coverage amounts, up to $1 million.
Simplified Issue Life Insurance
The simplified issue life insurance asks a few questions about your medical history to evaluate your level of risk. You must answer about 15-25 questions honestly. It takes about one week to get approval.
The simplified issue life insurance has more competitive rates and offers higher coverage limits than the guaranteed issue life insurance, up to $750,000.
Guaranteed Issue Life Insurance
The guaranteed issue life insurance offers you coverage without asking any questions at all. You don’t go through a medical exam and don’t have to answer any questions regarding your health.
However, the guaranteed issue life insurance is way more expensive in terms of premiums, and its coverage amounts are lower, usually around $50,000. Though, it can get approved within 48 hours or instantly.
Benefits and Downsides of No Medical Life Insurance
Like all types of life insurance policies, there are several benefits and downsides to no medical life insurance, including providing coverage to individuals with health conditions. Let’s look at some of its pros and cons.
Pros
- Offers coverage for individuals with health issues: Canadians who have an underlying health condition and have been denied coverage can finally get life insurance with no medical life insurance. They can apply for simplified or guaranteed issue life insurance if they are too old or unhealthy.
- Speedy approval: Most life insurance policies can take about six weeks for approval. This is because the insurance company takes a lot of time to finish the underwriting process, and many people can’t wait that long. They may need the insurance policy urgently due to personal or business reasons. No medical life insurance policies are approved within 48 hours, and some are approved instantly.
- Dangerous occupations are covered: Some jobs and hobbies are riskier than others. Jobs like underground mining and hobbies like scuba diving and skydiving are hazardous. Some insurance companies do not insure Canadians with high-risk jobs or hobbies. But no medical life insurance can give you a shot at life insurance at affordable rates.
- No medical test: According to research, 20% of adults have a needle phobia. So if you are in perfect health condition but don’t like to take a medical exam, you should opt for no medical life insurance. You only have to answer a few questions to prove your eligibility.
- Offers coverage for funerals: If you are above 50 and want to buy life insurance to cover your funeral expenses, you can go for no medical life insurance. For your funeral, you would need a small coverage of $25,000 or $50,000. Not many traditional life insurances have death benefits in that range, so buying no medical life insurance is a better option.
Cons
- More expensive: Traditional life insurance is cheaper than no medical life insurance. Traditional life insurance requires a medical exam. The medical exam allows your insurer to correctly evaluate your risk and set your premiums accordingly. However, with no medical life insurance, the insurers can’t thoroughly assess your risk, so they are taking on more risk to offer your coverage and compensate it by making you pay higher premiums.
- Low coverage amounts: If you need a higher insurance coverage amount, you should opt for a fully underwritten life insurance policy. No medical life insurance policies don’t offer enormous death benefits, and their death benefits are usually below $5 million.
Should I Get No Medical Life Insurance If I Am Healthy?
If you are in perfect health condition and want to take out a life insurance policy but do not like medical exams, no medical life insurance is a good option.
There are types of no medical life insurance that can offer you low and affordable premiums, very similar to fully underwritten insurance policies. Accelerated issue life insurance doesn’t require medical examination but keeps the premiums reasonable.
Suppose you are young and healthy and want to buy life insurance without the hassles of medical exams. In that case, you should apply for no medical exams to easily receive affordable premiums.
How Much Does No Medical Life insurance Cost?
The cost of your no medical life insurance will depend on the type of policy and the life insurance company you apply with.
While the cost of accelerated issue life insurance is somewhat similar to other traditional life insurance policies, simplified issue and guaranteed issue life insurance are much more expensive.
Further, fully underwritten life insurance policies have more affordable premiums than no medical life insurance policies, because the insurers take into account everything about you. They collect all they need to evaluate how risky you are, your age, health status, family medical history, smoking status, and lifestyle choices.
They use this information to determine your risk level and offer you the best premiums and coverage.
Final Thoughts on No Medical Life Insurance
If you’re looking for an easy, no-hassle way to get life insurance without a medical exam, no medical life insurance is the way to go.
No medical life insurance is an excellent option for those looking for an affordable life insurance policy that does not require medical exams. It’s also perfect for those worried about their health and do not think they would pass a medical exam.
If you are interested in this type of policy, speak to an insurance advisor, they can help you find the best deal available and advise you on how no medical life insurance policy can benefit you and your family.
Hi, I'm Adeola Adegoke. I am a licensed Insurance Broker in Manitoba, and I hold a master’s degree in Mathematical Sciences (with a major in Financial Modeling) from the African Institute for Mathematical Sciences (AIMS), Tanzania.
Also, I have a second master's degree in Statistics from the University of Regina, and I am currently pursuing my Ph.D. in Statistics at the University of Manitoba.
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