No medical life insurance is a type of life insurance policy that does not require an applicant to take a medical exam. Some insurers with no medical exam policies will still ask you a few health questions to assess eligibility, while others will not. Both are good options for people with a complicated medical history — but there are some downsides to take into consideration.
Keep reading to learn more about no medical life insurance and if it is the right choice for you.
Should I Get No Medical Life Insurance?
Whether you should get no medical life insurance, depends on your health, needs, and preferences. If any of the following statements describes you, a no medical life insurance policy might be a good option.
You are someone with a serious underlying health condition
Not everybody who applies for life insurance gets approved. A debilitating health condition, a terminal illness, or multiple minor health issues can prevent you from getting a traditional life policy. In these circumstances, often a no medical life insurance policy is the only option to access life insurance.
You need coverage quickly
Traditional life insurance policies can take up to six weeks for approval. The reason why they take so much time is medical underwriting. Life insurers require you to undergo a medical exam and may also contact your attending physician for more details. As you may guess, all of this takes time.
However, not everyone can afford or is ready to wait for over a month to get coverage. For these applicants, no medical life insurance policies is a good option. Since it lets you skip the paramedical test, you can receive an approval within 48-72 hours, even the same day in some cases.
You are afraid of needles
Fear of needles, known in medical literature as needle phobia, is a recognized medical condition and nothing to be ashamed of. In fact, at least one in 10 people have it. For such people, the life insurance medical test could be a harrowing experience. If you are one of them, consider no medical life insurance.
You want a life insurance policy to cover end-of-life expenses
If you are in your senior years and looking for a life insurance policy to take care of burial costs, a no medical life insurance plan could be a suitable option.
You have a dangerous job or hobby
A risky job, like commercial fishing, may make you ineligible for a fully underwritten life insurance policy. Likewise, a dangerous hobby, like rock climbing, can put traditional policies out of your reach. Consider a no medical life insurance plan if your occupation or hobby is linked to an increased risk of death.
You want buying life insurance to be easy and simple
Many Canadian providers offer no medical life insurance online. You can apply for coverage from the comfort of your living room. Traditional life insurance policies, by contrast, are mostly sold through agents. So, you need to talk to a broker over the phone or schedule an in-person meeting to complete the application process.
Your previous life insurance application was denied
A complicated health history is the most common reason for declined applications, but it is not the only one. A poor driving history also affects your ability to buy life insurance. If you have a history of reckless driving or have been charged with multiple DUI convictions, a no medical life insurance policy might be your only chance to secure life insurance until the driving record improves.
What if I Have Underlying Health Conditions?
Having an underlying health condition does not automatically mean you cannot get a traditional term life or whole life policy. When you apply, a life insurer assesses your mortality to determine if they can offer you coverage and, if yes, what premium rate to charge you.
You are likely to qualify for traditional life insurance coverage even with an underlying condition unless:
- Your future health is difficult to evaluate (for example, you are still undergoing treatment)
- Your illness seriously impacts your life expectancy
In these circumstances, a no medical life insurance policy could be a good option to get some coverage. It can provide a small death benefit to your loved ones should you pass away while the policy is still in force.
However, in all other situations, you may well be able to purchase a traditional life insurance policy. Though, the insurer is likely to charge you a higher premium to compensate for the additional risk.
Regardless of your health condition, you should first apply for a standard life insurance plan. The reason is simple. These policies are much cheaper than comparable non-medical life insurance plans.
Also, many no medical life insurance policies come with a waiting period, usually two years. If you pass away during this period, the insurer will not issue the death benefit to your beneficiary. Instead, it will refund the premiums, plus interest.
Should I Get No Medical Life Insurance if I Have Diabetes?
People with diabetes may think they will not be eligible for traditional life insurance coverage, but that is not the case. If your condition is well managed, a traditional policy might not be as expensive as you think.
There are two types of diabetes — type I and type II. Patients of both types can find traditional life insurance options, if their condition is not severe. Usually, type I diabetes receives higher premiums than type II.
So, if you have diabetes, first apply for a traditional term or whole life plan. Opt for a no medical life insurance policy only if multiple providers turn you down, which is quite unlikely.
Should I Get No Medical Life Insurance if I Have Cancer?
Some traditional life insurance options are available to cancer survivors in remission, but they vary by insurer. However, if you are diagnosed with cancer or are undergoing treatment, you will only qualify for a no medical life insurance policy.
Most life insurers will approve you for a fully underwritten policy only if your cancer has been in remission for two to five years. If you have not been in remission for that long or are still undergoing treatment, consider guaranteed issue life insurance. It involves neither a medical exam nor health questions and is available to almost everyone.
The trade-off is guaranteed issue life insurance is significantly costlier than term life insurance. Plus, they have small benefit amounts. However, if you do not qualify for a standard term life plan, it could help you provide some financial protection to your family. Once your cancer is in remission for a few years, you can reapply for a traditional policy.
Should I Get No Medical Life Insurance if I Have Heart Disease?
Heart disease describes a number of medical conditions that affect your heart. Examples include blood vessel defects, congenital heart defects, and heart rhythm problems. Heart disease is a fairly common condition. About 1 in 12 people in Canada age 20 and over are living with it.
So, can you get traditional life insurance with heart disease?
You can, but it all depends on the severity of your condition and overall health. If your heart disease is well-managed and you are in good shape, you may find insurers who are willing to offer you a traditional policy. However, like other pre-existing conditions, heart disease makes you riskier in the eyes of life insurers. So, you are likely to pay higher premiums.
However, if your heart disease is severe or very recent, you may only qualify for a no medical life insurance policy.
What if I am Healthy?
Some life insurers offer affordable no medical life insurance to young and healthy applicants. If that sounds like you, it could be a good option since rates are comparable to traditional plans. The entire application process is generally online, and you just have to answer a few questions to prove eligibility.
For all other applicants, no medical life insurance policies are likely to be considerably more expensive than a traditional term life plan. Unless you need coverage quickly or are afraid of needles, buying a no medical life insurance policy might not be a smart decision.
No medical life insurance policies let you bypass the medical exam. This makes it a good choice for certain applicants, like those with serious health conditions, fear of needles, or urgent life insurance requirements. The convenience of skipping the paramedical exam, however, comes at a price. No medical life insurance is more expensive than traditional policies. If you are in good health, you may be better off buying a standard life insurance policy. Whether you are looking for a no medical policy or a traditional policy, Dundas Life can help you get the best coverage at the best price.