No Medical Life Insurance: When is it Right for Someone?

January 13, 2020 3 min read

If your medical history is complicated, you’ve probably never even considered looking at life insurance.  Or maybe you’ve heard of no medical life insurance? So what is no medical life insurance and when should someone consider it?

What is no medical life insurance?

No medical life insurance is a kind of life insurance policy that you can buy without having to go through a medical examination.  As far as the life insurance industry has come, getting life insurance is still a process and can take a while.  Some people prefer no medical life insurance because it is easier and less time-consuming to get, but a lot of people consider it because it’s still an option if you have a pre-existing condition. Now it’s not all roses with no medical life insurance.  It is usually a fair bit more expensive than standard life insurance because insurance companies have less data to evaluate your health and create a risk profile.

Two main types of no medical life insurance

Simplified issue life insurance is a policy that doesn’t require an examination by a doctor but may require a questionnaire about your health. When you start the application process for a simplified issue policy you will be asked questions about your health, any pre-existing conditions, if you’ve been hospitalized and if you have been declined by another insurance company.  These policies are offered as term insurance policies or whole life.

Guaranteed issue life insurance is a policy that doesn’t require a medical examination or medical questionnaire.  Sounds easy right?  It is but theses policies usually have a low maximum coverage limit and are very expensive. And for many of these policies, if you die within the first two years of policy issuance your beneficiary will only receive the payments you have made up until that date.

Why would someone buy no medical life insurance?

No medical life insurance is suited for people that need life insurance but are unable to get a standard life insurance policy for health related issues or other reasons:

  • If you have been declined standard life insurance by an insurance company
  • If you have a chronic illness
  • If you have been convicted of impaired driving
  • You work a dangerous occupation and have been declined coverage due to that
  • You really, really don’t want to have a medical examination

How much will no medical life insurance be?

When insurance companies are underwriting standard insurance policies they have many data points that they can calculate your risk profile and how long you will likely live.  When they are issuing no medical life insurance policies they are restricted to a few data points, which usually means higher premiums due to the risk and ambiguity. The factors that go into that pricing are age, sex, whether you smoke or not, and the amount of coverage you want and your medical history if you choose simplified issue.

Can I be denied no medical life insurance?

There are less circumstances that would lead to a denial of coverage from the life insurance company.  The most common occurrence is being over the maximum policy issuance age, usually 75 with most companies.

Before you buy no medical life insurance from anyone, you should talk to a broker and make sure that is the best option for you and make sure you are getting the right policy.

Talk to a broker

Written by

Davis started in the insurance industry in 2009. He completed a Bachelor of Business Administration-Marketing at the University of Winnipeg in 2017 and us currently completing a Master of Management Innovation at Queens University.  He obtained his full CAIB designation in 2016, has his LLQP certification in 2018 and is currently working on his CIP designation. Although his everyday function is not primarily as a broker, as he works on sales and marketing strategy, he enjoys the opportunity of applying his insurance and corporate innovation knowledge to find new ways to integrate technologies to innovate and make insurance simple, easy and clear.