No medical life insurance is life insurance where you are not required to do a medical exam or doctor visit when applying for coverage. This is attractive to many looking to avoid medical exams, but it’s also important to note that the premiums for this type are usually higher. As with all life insurances, it has its advantages and disadvantages.
In this article:
Types of No Medical Life Insurance
While not everyone in Canada qualifies for traditional life insurance, it still remains critical for you to have life insurance and the right type of insurance in the event that something happens to you, and your beneficiaries or family need another form of income. This is where no medical insurance steps in. It’s designed for individuals who are harder to insure, individuals who want to get coverage but don’t want to undergo medical tests, and persons with a poor medical history that disqualifies them from traditional insurance.
Just as there are two main types of traditional life insurance, there are two main types of no-medical life insurance: simplified issue life insurance and guaranteed issue life insurance.
Simplified Issue Life Insurance
With this type of no-medical life insurance, you don’t have to take a medical exam to qualify for simplified life insurance, but you may still have to answer a questionnaire about your condition and medical history. This type of life insurance is mainly meant for those who need it right away, which is why you’ll need to answer a brief questionnaire so you can have coverage within days instead of waiting weeks or months. Depending on the insurance company you apply to, they’ll provide you with simplified life insurance as either a term or a permanent policy. Simplified insurance can be found with many insurers, such as Canada Protection Plan.
This type of insurance works for people who don’t want to undergo a medical exam, are not sure what type of policy they can qualify for, or even simply because they need life insurance as soon as possible and want to name their children as their beneficiaries.
Guaranteed Issue Life Insurance
Guaranteed life insurance is similar to permanent life insurance, however, you won’t need to undergo a medical exam or answer any questions about your health: your coverage is guaranteed with no questions asked. As nice as this may sound, it also has its downsides: this means your premiums may be higher than traditional life insurance premiums, and the death benefit will not be as high. This type of life insurance has higher premiums because of the risk associated with insuring someone who may have a high risk associated with them due to their health condition or activities. It can also take a couple of years before the lump sum is paid out.
People may choose this life insurance policy because they don’t qualify for anything else, or maybe they just want to be able to provide their family with at least a little bit of a death benefit payout. Like simplified life insurance, this coverage can also be very quick and you won’t have to wait a long period of time or worry about not being accepted in the first place.
Advantages of No Medical Life Insurance in Canada
If you are considering no medical life insurance, here are some of the advantages that come with this type of policy:
A shorter approval time
Often, applying for coverage does not happen overnight, and waiting for it to be approved can get frustrating. Traditional life insurance often takes months, of course, under certain conditions.
This may not be considered the ideal situation, especially for those who are looking for coverage as soon as possible. The delays can affect other underlying processes as well. For instance, it can delay the completion of a divorce process if the parties seek a divorce decree.
Whatever the process is, no medical life insurance will not get in the way. The approval process can be completed in a day or sometimes quicker, giving you peace of mind that you’re protected and do not need to wait weeks.
More chances of approval
There are several reasons that would make an insurance company decline your application. Your personal and family health history could get in the way, of other reasons like age, occupational hazards, financial constraints, and a history of other rejected life insurance applications.
However, existing health conditions remain top of the list of the reasons why your life insurance application would be denied. The good news is that this type of insurance does not focus on medical exams whereby an undiagnosed condition could show up last minute. The fact that you do not need a medical exam boosts your chances of approval, as this is the single most common reason for rejection. No medical life insurance removes the worry of not being able to obtain the coverage you require.
Provides coverage for Dangerous Activities and Dangerous Occupations
If you play or partake in extreme sports or dangerous activities, you may have been denied by life insurance companies. You can still be covered with no medical life insurance, particularly if you participate in the following:
- Skydiving
- Scuba diving
- Rock climbing
- BMX racing
- Big wave surfing
- Mixed martial arts
- Hang gliding
Or, if you have a job that is considered dangerous, your chances of being denied life insurance will be higher because you could die unexpectedly before your life insurance term comes to an end. If you have a dangerous job, applying for a no medical policy will help your chances of getting approved. Examples of dangerous jobs:
- Construction workers
- Pilots or flight engineers
- Miners
- Loggers
- Lumberjacks
- Truck drivers
- Commercial fishermen
- Power line installers/repairmen
- Steelworkers
- Farmers
- Roofers
- Arborist
Provides coverage for Foreign Travel
Alternatively, if your job requires you to travel frequently to foreign countries, you’ll still require a form of life insurance. When applying for no medical life insurance, questions surrounding foreign travel are a lot more lenient and understanding so you can plan for future travel with ease.
Travel can affect your life insurance because there are higher-risk countries (like those that are in war times or lack sanitation) that can cause you to die unexpectedly. If you’re travelling to a low-risk country, your life insurance plan doesn’t have to be adjusted. High-risk countries usually include Afghanistan, Yemen, North Korea, Syria, Iraq and Iran, although this list can change accordingly due to circumstances and unprecedented events.
You’re not judged for past Substance Abuse or Criminal History
Unfortunately, if you’ve previously struggled with things like alcohol, drug abuse or have a criminal history, such as being convicted of a felony, insurance companies will deny your life insurance application because you are seen as a “risk”. No medical life insurance applications will not judge you based on your past. You can qualify if:
- In the past twelve months, you have not used drugs or been in a treatment facility
- In the past three years, you have not used drugs, received medical treatment or advice, or been to a treatment facility
- In the past twelve months, you have not been charged, incarcerated, on probation, or have been awaiting sentencing
Less tedious application process
If you are looking for a stress-free way to apply for life insurance, then this should be the direction to take. The long process, which includes booking an appointment with a doctor for a medical exam and waiting for the results is usually discouraging. Traditional life insurance also often requires the applicants to fill a mountain of papers. What makes the no medical life insurance easy to apply for is that it is less detailed in the questions to answer, making it easy and quick to fill out.
It is great if you hate needles
Most people dread needles. If you fall in this category, then the no-medical life insurance will work perfectly for you because there are no needles involved in the process. This fear often makes it difficult for people to go for medical exams for insurance applications. It’s not uncommon to see people with no life insurance just because of the fear they have for needles. No medical life insurance is a comfortable way of getting coverage.
Poor medical history
Having a poor medical history, such as having high cholesterol or high blood pressure, will make insurance companies skeptical of approving your application. Skipping the tests, in this case, would be a great idea, and that is only possible if you are going for this kind of insurance.
Disadvantages of No Medical Life Insurance in Canada
Although there are many benefits of no medical life insurance, it doesn’t come without its disadvantages.
It is expensive
While the process of application is very smooth, there is a price to pay. Compared to traditional insurance, the no-exam one is typically more expensive. Remember that giving you coverage without a medical exam is a risk on the insurance company’s end. In exchange, the insurance company has to cushion this risk by making the premiums more expensive than for insurance types with medical exams.
Limited coverage options and benefits
The other downside of no exam insurance is the coverage options are limited, meaning the death benefits amount is limited. If you die, the amount that your beneficiaries will receive from this plan is less compared to other traditional life insurance products. For this reason, you may need to consider having another insurance, either privately or with your employer with a group policy.
The policies are shorter
Traditional term life insurance policies usually have longer-term lengths available. While you might get up to 30 years with a traditional term life plan, most no-medical term life insurance policies will give you about 15 years.
How do you know if a no exam medical insurance is the best option for you?
As mentioned before, as much as you don’t need to go through a medical exam to get this coverage, it still has approval requirements of its own. Not everyone who applies for this insurance gets approved. If you are interested in getting no-medical life insurance, here are things to keep in mind if you’re not sure if this type of insurance is right for you.
You are not looking for a larger death benefit
If you are not looking for a huge death benefit for your family, this will work for you. Remember that the death benefits of this kind of insurance are limited: they’re usually up to $500,000 for most companies, while regular insurance can go beyond $1,000,000. If you feel that this amount would be suitable for your beneficiaries, it is safe to go ahead with the no-exam insurance.
You need to get coverage within the shortest time possible
Life insurance coverage is often required for processes such as divorce and loan applications. The traditional policies usually take a lot of time and effort before they are approved. This can interfere with your loan application or divorce process.
A no exam life insurance is approved much faster and will be available when you need it. This makes it the best choice if you need quick approval for whichever process.
You don’t qualify for traditional coverage
At the end of the day, you need to have life insurance. However, things often don’t go as you imagined them, especially when it comes to traditional life insurance applications. Your medical condition and history, lifestyle choices, and occupation are some of the things that will make you ineligible for traditional life insurance.
More so, if you do get traditional life, you might end up paying very high premiums due to a high rating. The no-exam life insurance is the ideal pick if you are unable to get traditional life insurance.
You don’t want to get a medical exam
There are several reasons why an individual would be reluctant to go for the exams, one of them being privacy. If you don’t want to get medical exams for either privacy reasons or because you’re not a fan of needles, then the no exam life insurance is for you. It will provide you with the convenience of no exams and needles when getting coverage.
Frequently Asked Questions (FAQs)
No medical life insurance is a type of life insurance that you can obtain without needing to undergo a medical examination. This type of life insurance tends to have a simpler application process because it is easier and less time-consuming.
No medical life insurance tends to be more expensive due to it being offered to offer coverage for those with health conditions and may not qualify for more affordable, traditional policies. These health conditions increase your likelihood of death and increase the risk to insure you.
For most traditional life insurance policies, it is necessary to undergo a medical exam. This allows for life insurance companies to do a thorough analysis of to decide your premiums.
Reasons for considering not having life insurance might range from poor health to pre-existing medical issues. A no medical life insurance policy is also an excellent option for seniors who have difficulty obtaining regular insurance coverage due to their age or any age-related illnesses.
No medical life insurance is a fantastic choice if you need coverage right away or don’t enjoy having physicals. Simplified issue life insurance keeps expenses low while doing away with medical exams.
Age limits for no medical life insurance can vary depending on the insurance company and the term length of policy you’re interested in. Generally, no medical life insurance policies are designed to be accessible to individuals who might have health concerns or who prefer a simplified application process. As a result, some insurers offer these policies to older individuals who may have difficulty qualifying for traditional life insurance due to their age, typically as guaranteed life insurance. In other cases, they may offer no medical life insurance in 10, 15, and 20 year terms, where the age limit will typically cap at 75, and the term you qualify for will depend on how many years before you turn this age.
In most cases, it is not possible to convert a no medical life insurance policy to a traditional policy later on. No medical life insurance policies, such as guaranteed issue or simplified issue policies, are designed to provide coverage without the need for a medical examination or extensive underwriting. These policies are typically offered to individuals who may have health issues or who prefer a simplified application process. If you’re looking for cheaper premiums as you become healthier later on, it’s best to change your coverage by cancelling your current no medical policy for a traditional policy, if circumstances permit.
Do you have life insurance questions?
There are many types of life insurance policies out there for you to choose from. However, you need to put your thoughts into the selection process to get something that works for you. You can start by defining your goals and asking yourself what you plan to achieve with the plan.
At Protect Your Wealth, we work with and compare policies and quotes from the best life insurance companies in Canada to ensure the best solution for you and your needs. We provide expert life insurance solutions, including no medical life insurance, critical illness insurance, term life insurance, and permanent life insurance to build the best package to give you the protection you need.
Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, British Columbia, Alberta, and Manitoba including areas such as Toronto, Edmonton , Victoria, and Winkler.
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