No Medical Life Insurance Canada

If you're like most people, you probably think that you need to have a medical examination in order to buy life insurance.

Taking a life insurance medical exam can be a hassle. If you have an underlying condition, you may be worrying about how results will affect your medical life insurance premiums. If you’re fit and healthy, it can seem like a waste of time.

Did you know that there are policies available that don't require a medical examination?

These are called no medical life insurance policies, and they can be a great option for people who are looking for coverage but don't want to go through the hassle of getting a medical exam. Keep reading to learn more about no medical life insurance policies and see if they might be right for you.

What is no medical exam life insurance?

No medical life insurance is exactly what it sounds like: a life insurance policy that doesn’t require a medical exam to qualify for coverage. The two types of no medical insurance include simplified issue and guaranteed issue life insurance.

Although a no medical life insurance policy lets you avoid a medical test, this convenience comes at a cost. No-medical life insurance policies usually cost more than a traditional life insurance policy.  

Insurance providers may still ask you medical questions. You must answer these questions truthfully. If the insurance company 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 health concerns or a pre-existing condition, you might think it would keep you from getting life insurance.

In reality, having health concerns or pre-existing conditions is not the end all be all. You can still buy life insurance, in fact, there are many life insurance products designed specifically for Canadians with medical conditions.

However, your health condition will likely affect the amount of life insurance you can buy. You're also likely to receive a higher annual premium rate than someone who’s in better health.

Option 1: Apply for traditional life insurance

One common mistake that people make is to 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.

This is not always the case—you may be healthier than you think, and how you see your health is not the way an underwriter sees it. There’s no harm in giving traditional coverage a shot. If you qualify, you get better rates and more options. If not, 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.

Option 2: Apply for no medical life insurance

In the event that you are declined traditional life insurance, or if you suspect that your pre-existing condition will disqualify you, no medical life insurance is a great option available to you.

‍Pros and cons of no medical life insurance

There are both pros and cons to no medical life insurance, and it is a good idea to consider the benefits and tradeoffs before deciding if it is the right choice for you.

‍Benefits of no medical insurance

1. Speedy approval

Life insurance is not like buying a TV. It’s a unique product, and normal life insurance policies take up to six weeks for approval.

However sometimes people need insurance coverage quickly, due to personal or business reasons. No medical life insurance is an ideal choice for them, as 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.

Let's say you have a trip coming up, and need insurance coverage quickly. 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 life insurance policy can help you secure approval. These loans have tight deadlines, so purchasing a traditional insurance policy at the last minute is not an option.

2. 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 other no medical life insurance institutions.

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.

3. 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 taking a medical exam, consider an accelerated 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 insurance underwriting.

4. 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 high-risk job or hobby, that may not go down so well with traditional insurance institutions. 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.

5. Funeral insurance

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 and a traditional life insurance 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.

1. No medical life insurance is more expensive

When it comes to affordability, traditional coverage wins hands down. You need to complete a medical exam to qualify for such a policy. The results of this medical exam allow the life insurance company 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 life insurance company 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.

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2. Lower coverage amounts

No medical life insurance policies don’t have the same benefit amounts as traditional policies. While each life insurance company 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.

Who benefits from no medical life insurance?

Clearly, no medical insurance isn't the perfect choice for everyone due to its higher costs and lower coverage amounts. However, there are many people who can benefit from a life insurance policy that doesn't require an exam.

Do any of the following sound like you? If so, no medical life insurance might be the best choice for you.

1. If you have health concerns or a pre-existing condition

Some health concerns can make it difficult to qualify for traditional policies. If you have failed to qualify for other plans, or have a serious medical concern that you think will make it impossible to pass a medical exam, no medical insurance might be your best chance at receiving coverage.

2. If you have a dangerous job or hobby

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 high-risk job or hobby, that may not go down so well with traditional insurance institutions. 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.

3. If you are trying to cover the cost of a funeral

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 and a traditional life insurance 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.

4. If you're healthy, but need a policy quickly, or hate the idea of a medical test

Normally, you wouldn't need a no medical examination if you are young and healthy. However, if you need a policy quickly, such as for an upcoming trip, 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.

‍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 life insurance company 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 issue life insurance and simplified 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 life insurance company 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.

In order to get the best deal, shop around as much as possible. Comparing quotes is the only way to ensure you get the best possible life insurance policy. To receive personalized quotes from leading insurers in Canada, speak to our insurance advisors at Dundas Life, who will assess your situation and recommend the most suitable non-medical life policy for you!

Best no medical life insurance options in Canada

There are three types of no medical life insurance in Canada:

• Simplified issue has no medical exam, but still includes a health questionnaire, so you could still potentially be denied coverage
• Guaranteed issue is exactly what it sounds like: no physical exam or questionnaire, so you are guaranteed to get a policy as long as you are within the insurers age limit
• Accelerated issue does include a series of health questions, but it is affordable and has a short waiting period

Different types of no medical life insurance are suitable for different situations.

If you want to avoid a physical medical exam:

• Consider accelerated issue life insurance. 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 need life insurance quickly

• ‍Consider accelerated issue life insurance or simplified life insurance. You can receive approval on an accelerated 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 and are worried about eligibility due to poor health

• ‍Consider simplified issue life insurance or guaranteed issue life insurance. 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 life insurance. 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.

Conclusion

No medical life insurance policies do not require a physical exam, making them ideal for those who have pre-existing conditions that may prevent them from being approved for other types of life insurance policies.

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On the other hand, no medical life insurance policies offer fewer benefits and cover a smaller amount of risk than traditional life insurance plans. And because they don't require a physical exam, some people may find it difficult to get coverage if they have significant health problems.

Frequently Asked Questions (FAQs)

‍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.

Here's a list of no medical life insurance frequently asked questions.

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.

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 life insurance company 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.