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-related exam can be a hassle. If you have an underlying condition, you may be worrying about how the 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-related exam. Keep reading to learn more about no-medical life insurance policies and see if they might be right for you.

Understanding Retirement Planning in Canada

Retirement planning is a crucial aspect of financial planning in Canada. It involves creating a strategy to ensure that you have enough savings and income to maintain your desired lifestyle during your golden years. A well-planned retirement can provide peace of mind, financial security, and the freedom to pursue your passions.

Retirement goals and expenses

When planning for retirement, it’s essential to consider your goals and expenses. What do you want to achieve in retirement? Do you want to travel, pursue hobbies, or spend time with family and friends? What expenses will you need to cover, such as housing, food, healthcare, and entertainment? Understanding your goals and expenses will help determine how much you need to save for retirement. Permanent life insurance policies can also be a strategic tool in retirement planning, providing tax-deferred cash value growth while ensuring financial security.

Importance of planning for retirement

Planning for retirement is crucial because it allows you to create a sustainable income stream, reduce financial stress, and increase your chances of achieving your retirement goals. Without a plan, you may struggle to make ends meet, rely on government assistance, or compromise your lifestyle. Starting early and being consistent can build a retirement nest egg to meet your needs and wants.

Assessing Your Retirement Needs

Assessing your retirement needs involves evaluating your financial situation, expenses, and goals to determine how much you need to save for retirement. This process helps you create a personalized retirement plan that addresses your unique needs and circumstances.

Calculating your retirement income needs

To calculate your retirement income needs, consider the following factors:

1. Expenses: Estimate your monthly expenses in retirement, including housing, food, healthcare, transportation, and entertainment.
2. Income Sources: Identify your potential income sources in retirement, such as pensions, RRSPs, TFSAs, and part-time work.
3. Inflation: Account for inflation, which can erode the purchasing power of your savings over time.
4. Life Expectancy: Consider your life expectancy and the potential need for long-term care.
5. Retirement Goals: Factor in your retirement goals, such as travel or hobbies, and their associated costs.

By considering these factors, you can estimate your retirement income needs and create a plan to achieve your goals. This personalized approach ensures that you are well-prepared for the financial demands of retirement, allowing you to enjoy your golden years with confidence.

What is no medical exam life insurance?

No medical insurance is exactly what it sounds like a life insurance policy that doesn’t require a medical-related exam to qualify for coverage. The two types of no-medical insurance include the simplified issue and guaranteed issue life insurance, also known as guaranteed acceptance life insurance, which is a straightforward option for individuals aged 40 to 75 seeking coverage without the need for a medical-related exam.

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

• No medical insurance policies typically have higher premiums than policies that require a medical-related exam.
• The policies may have coverage limits or exclusions for pre-existing conditions.
• No medical insurance is often more difficult to qualify for than policies that require a medical-related exam.

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 insurance products designed specifically for Canadians with medical conditions.

However, your health condition will likely affect the amount of insurance coverage 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 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.

Don't automatically assume a no-medical life insurance plan is your only option. Try traditional coverage first instead and keep non-medical 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 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

It 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 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 who don't have the luxury of time. If you're looking for long-term coverage with a policy that grows in value over time, permanent life insurance can also offer similar fast approvals with lifetime benefits.

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 acceptance life insurance may be your only option. This type of policy can help cover final expenses, providing financial support to alleviate debt and ensure that families are protected during difficult times.

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, not just a fancy term.)

If you're in good health but don't like the idea of taking a medical-related exam, consider an accelerated life insurance policy. It only asks you a few questions to prove your eligibility.

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 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.

A no-medical insurance plan may be a better option if you are a healthy individual over age 50 and want to buy insurance to cover funeral expenses. Permanent life insurance is another option for funeral insurance, providing lifelong protection and the opportunity to build savings, which can be beneficial for covering burial expenses.

The cost difference between no medical insurance and a traditional insurance policy for someone with your profile can be pretty narrow. Also, the death benefit offered by most traditional insurance policies are usually not as low as no-medical policies.

You don't need a million-dollar insurance plan to cover burial expenses. A policy with a $25,000 or $50,000 payout will prove sufficient. However, there are not many traditional life policies like term life insurance and whole life insurance with a death benefit in that range. So, using no medical insurance to cover burial expenses makes sense.

Disadvantages of no medical life insurance

No medical 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. This is how medical life insurance works: by allowing applicants to bypass a complete medical-related examination, typically resulting in higher costs compared to traditional life insurance. 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

Life insurance policies with no medical exam don’t have the same benefit amounts as traditional policies. While most life insurance companies impose coverage limits, there are not many no-medical policies with a benefit amount over $5 million.

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, many people can benefit from a life insurance policy that doesn't require an exam. If you need long-term protection, permanent life insurance offers a death benefit and a cash value that can be borrowed.

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 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 with a generous death benefit.

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. Permanent insurance is another option, providing lifelong protection and the opportunity to build savings, which can be beneficial for covering burial expenses.

The cost difference between a no-medical life insurance provider and a traditional life insurance policy for someone with your profile can be pretty narrow. Also, the death benefit 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 that offer a death benefit 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 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, this is a good option. Accelerated issue life insurance providers do away with medical examinations but keep the costs reasonable.

‍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, death benefit amount, and life insurance company you select.

For instance, the cost of accelerated issue insurance is similar to that of traditionally underwritten policies. On the other hand, both guaranteed acceptance life insurance and simplified life insurance coverage cost way much more.

How much does medically underwriting life insurance coverage cost in comparison?

Underwritten life policies have lower premiums than medical life insurance.

Why is that? Because the 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 evaluate you thoroughly 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 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 insurer's 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, and various life insurance providers offer differing policies that cater to individual needs and circumstances.

If you want to avoid a physical medical exam:

• Consider accelerated issue life insurance. This type of insurance is affordable and doesn't include a physical. You may have to answer a detailed questionnaire, though.  

If you need life insurance quickly

• Consider accelerated issue life insurance or simplified life insurance instead of guaranteed acceptance 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 are worried about eligibility due to poor health

• Consider simplified issue life insurance or guaranteed acceptance life insurance. Your first option should be simplified issue insurance. It offers coverage for higher amounts and is the cheaper of the two. If you get turned down, shop for guaranteed acceptance life insurance. Guaranteed acceptance life insurance would be the second option if the simplified issue life insurance is not a good option for you.

If you want life insurance to cover funeral expenses

• Consider guaranteed life insurance instead of guaranteed acceptance 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 plans 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 insurance policies offer fewer benefits and cover a smaller amount of risk (smaller death benefit) than traditional 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 insurance. In most other cases, 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 insurance policies are available both as whole life insurance and term life insurance. Dundas Life works with some of the leading insurance companies in Canada. We can help you find whole life or term life insurance coverage that's right for you.

How can I buy a no-medical life insurance policy?

Shop around as much as possible. Each 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.