No medical exam life insurance has one big advantage over traditional life insurance products — time. You don’t need to complete a medical exam, and because of that, you get approved quickly.
However, do the benefits of non medical life insurance outweigh the costs?
In this article, you will learn the pros and cons of no medical life insurance in Canada. And more importantly, whether it is right for you.
What is no medical exam life insurance?
No medical exam life insurance is exactly what it sounds like: a life insurance product that doesn’t require a physical exam to qualify for coverage.
Taking life insurance medical exams can be a hassle. If you’re fit and healthy, it can seem like a waste of time (though if you're perfectly healthy, you should get the medical component done if possible)
If you have an underlying condition, you may be worrying about how results will affect your premiums.
No medical life insurance lets you avoid a medical test. However, this convenience comes at a cost. No-medical policies usually cost more than traditional life.
Insurance providers will also ask you medical questions. You must answer these questions truthfully. If the insurance provider finds out you were dishonest during your application, it can reduce the payout or even deny your claims altogether.
Can I get life insurance if I have health concerns or pre-existing conditions?
If you have a pre-existing condition, you might think it would keep you from getting life insurance. But that’s not necessarily the case.
Having health concerns or pre-existing conditions is not the end all be all. You can still buy life insurance. There are many life insurance products designed specifically for Canadians with medical conditions.
However, your health condition will likely affect how much life insurance you can buy. You're also likely to receive a higher annual premium rate than someone who’s in better health.
Benefits of no medical life insurance
No medical life insurance has a lot going for it, such as:
Life insurance is not like buying a TV. It’s a unique product, and traditional life insurance policies take up to six weeks for approval.
But many people can’t wait that long. They need insurance coverage quickly, due to personal or business reasons. No medical life insurance is an ideal choice for them.
Many insurers approve non-medical policies within 48 hours. Some even approve instantly. That’s extremely beneficial for shoppers that don’t have the luxury of time.
Some need insurance coverage quickly because they’ve got a trip coming up. If you feel uneasy about traveling abroad without it, a no-medical is just what the doctor ordered. You’ll have coverage before your plane takes off!
If you’ve applied for a business loan and need collateral quickly, a no-medical policy can help you secure approval. These loans have tight deadlines, so purchasing a traditional life policy at the last minute is not an option.
Get coverage even with health issues
If you have an underlying health condition and are denied traditional coverage, all is not lost. You can have another go at it with no medical life insurance companies.
Give simplified issue life insurance a try. You just need to answer some health questions to qualify. However, if you are too unhealthy or too old, guaranteed issue life insurance may be your only option.
Affordable life insurance without a medical test
Looking for affordable coverage without a medical test because you have a fear of needles?
Well, you’re not alone. Up to 20% of the adult population have a needle phobia, according to research. (Yes, that’s a recognized medical condition and not just a fancy term.)
If you’re in good health but don’t like the idea of medical exams, consider an accelerated issue life insurance policy. It only asks you a few questions to prove your eligibility.
And the best part?
The premium rates are similar to life insurance policies with full medical underwriting.
Have a dangerous job
Some jobs — like commercial fishing and underground mining — are riskier than others. The same holds true for hobbies like skydiving and bungee jumping.
If you have a dangerous job or hobby, that may not go down so well with traditional life insurance companies. They are likely to quote you hire rates.
If they do, give no medical life insurance a shot, especially if you are healthy. You may be pleasantly surprised to find how affordable no-medical insurance quotes can be in your case.
It’s no secret the cost of insurance goes up with age. And once you cross 50, the jump is quite steep, roughly 5%-8% a year.
If you are a healthy individual over age 50 and want to buy life insurance to cover funeral expenses, a no medical life insurance policy may be a better option.
The cost difference between a no medical life insurance policy and a traditional life policy for someone with your profile can be pretty narrow. Also, the death benefits offered by most traditional life insurance policies are usually not as low as no-medical policies.
You don’t need a million-dollar insurance policy to cover burial expenses. A policy with a $25,000 or $50,000 payout is likely to prove sufficient. However, there are not many traditional life policies with death benefits in that range. So using no medical insurance to cover burial expenses makes sense.
Disadvantages of no medical life insurance
No medical life insurance policies are not as popular as life insurance policies with full medical underwriting.
Let’s find out why.
No medical life insurance is more expensive
When it comes to affordability, traditional coverage wins hands down. You need to complete a medical examination to qualify for such a policy. The results of this exam allow the insurer to correctly evaluate your risk and, consequently, set your rates. Your risk level is directly related to how much coverage you pay for.
But in the case of a no-medical policy, the insurer cannot completely assess your risk level. So they’re taking on more risk to cover you. And they compensate for it by raising your premium.
The bottom-line: If cost is your primary concern, opt for a life policy with full medical underwriting.
Lower coverage amounts
No medical life insurance policies don’t have the same benefit amounts as traditional life policies. While each insurer is different, there are not many no-medical policies out there with a benefit amount over $5 million.
If you need more coverage, you may be better off buying a fully-underwritten term life policy.
Should I get no medical insurance if I am healthy?
If you need a policy quickly or don’t like taking medical exams, no medical life insurance is a good option. Accelerated issue life insurance does away with medical examinations but keeps the costs reasonable. Young, healthy individuals can easily receive premium rates very similar to that of fully underwritten policies.
Common mistakes when getting no medical life insurance
Far too many people buy a non-medical policy because they are afraid of being turned down. They assume they’re not healthy enough to qualify for traditional life insurance.
But that may not be the case.
You may be healthier than you think. At any rate, how you see your health is not the way an underwriter sees it. So, there’s no harm in giving traditional coverage a shot.
If you qualify, you get better rates. Not to mention more options. If you don’t make the cut, the door to no medical life insurance is always open.
Don’t automatically assume a no medical life insurance policy is your only option. Try traditional coverage first instead and keep non-medical life insurance as your plan B.
Is it possible to get no medical whole life insurance?
Yes, it is. No medical life insurance policies are available both as whole life insurance and term life insurance. Dundas Life works with some of the leading life insurance companies in Canada. We can help you find the coverage that’s right for you.
How can I buy a no medical life insurance policy?
Shop around as much as possible. Each insurer calculates risk differently. Comparing quotes is the only way to ensure you get the best possible rate. Speak to our insurance advisors at Dundas Life, who will assess your situation and recommend the most suitable non-medical life policy for you. We will also ensure you receive personalized quotes from leading insurers in Canada.
How much does no medical life insurance cost?
How much you’ll have to pay for a non-medical policy depends on the policy type and insurer you select.
For instance, the cost of accelerated issue life insurance is very similar to that of traditionally underwritten policies. On the other hand, both guaranteed and simplified issue life insurance costs way much more.
How much does medically underwriting life insurance cost in comparison?
Underwritten life policies have lower premiums than no medical life insurance.
Why is that? Because the insurer knows all that it needs to know to determine how risky you are to insure. That includes your age, health, medical history, family’s medical history, and lifestyle choices. This information helps the insurer to thoroughly evaluate you and offer the best possible rate for the coverage applied by you.
Best no medical life insurance options in Canada
Different types of no medical life insurance are suitable for different situations.
If you want: to avoid a physical exam
Consider: Accelerated issue life insurance
Here’s why: This type of no medical life insurance doesn’t include a physical and is affordable. You may have to answer a detailed questionnaire, though.
If you want: life insurance coverage quickly
Consider: Accelerated issue life insurance or simplified issue life insurance
Here’s why: You can receive approval on an accelerated issue life insurance policy within 24 to 72 hours. But if you don’t qualify, you may have to take a medical test, and that will delay things. In that case, you may want to give simplified issue life insurance a go. Approval is instant or within two days.
If you want: life insurance coverage and are worried about eligibility due to poor health
Consider: Simplified issue life insurance or guaranteed issue life insurance
Here’s why: Your first option should be simplified issue life insurance. It offers coverage for higher amounts and is the cheaper of the two. If you get turned down, shop for guaranteed issue life insurance.
If you want: life insurance to cover funeral expenses
Consider: Guaranteed issue life insurance
Here’s why: This type of no medical life policy is available to almost everyone. So you don’t have to worry about getting turned down. Plus, the coverage amount is limited, usually just enough to cover burial or funeral expenses.
Is no medical life insurance worth it?
No medical exam life insurance is a good option for young, healthy people who don’t need a lot of coverage.
Those who don’t qualify for traditional coverage due to underlying health conditions should also consider it. It can be a good way to guarantee approval.
If you need a life policy quickly or don’t want to take a physical exam, opt for no medical exam life insurance. In most other cases, life insurance with full medical underwriting is a better option.