Fact CheckedAre you looking for life insurance with no medical exam or waiting period?
Well then, you’re joining the legions of people searching for the same ease! Who doesn’t want a quick and straightforward answer to protecting their family?
Life is busy, I get it. That makes life insurance coverage a LOW priority for most people.
And when your “to-do” list grows by the day, it’s tempting to cut corners when you can.
But before I get started on life insurance with no exam and no questions…
I want to give ‘you some heartfelt advice!
The “simplicity” of no-exam or life insurance comes at a price that may be steeper than you want to pay. That’s not to say it doesn’t work for the right situations.
Now, back to the business of whether or NOT you should Buy Life Insurance Online With No Medical Exam!
Life Insurance: No Medical Exam, No Waiting Period!
Buying life insurance online with no medical exam is a tempting option!
It’s a little bit like having your cake and eating it too!
This type of insurance is created for people like you and me, who are busy with kids or careers and have too many responsibilities.
The process is fast, simple, hassle-free, and provides immediate insurance coverage. You can apply RIGHT NOW and have protection for your family in place in as little as 24 – 48 hours!
So technically, there is a slight waiting period – but it is pretty instantaneous.
You can complete the application on the insurance company’s website, right?
Hmm, maybe not – if it seems simple, there’s usually a catch!
There’s ALWAYS A Price Attached To Convenience…
No medical exam life insurance is more costly than traditional coverage. Please remember that the higher the risk, the more expensive your premiums.
It makes sense. The less information an insurer has about you, the more likely they will increase your monthly payments. Underwritten policies are traditionally more affordable, but sometimes, it’s difficult for people with mild to moderate health issues to qualify.
What is no medical life insurance?
No medical life insurance is a policy that does not require you to have a physical examination to qualify. Instead of a physical, you answer a brief health questionnaire that asks you about significant health issues like cancer, heart disease, and smoking habits.
The good news is that Simplified Issue offers higher coverage limits AND doesn’t cost a bomb. More and more people are moving toward this type of life insurance because it’s quick and easy.
These policies are a practical option for clients in good health who want good coverage without the hassle of a medical exam.
As you can see, answering the questions correctly is very important. However, no medical coverage only requires answering some medical questions to qualify.
This means your insurance is more secure. Pulling a fast one on the insurers is a bad idea. They have access to prescription and medical databases, so they know more about you than you know. Misrepresenting your health issues on an application can result in your family’s claim being denied.
“NOTE: It’s imperative that you answer these questions honestly, misrepresenting anything on a no medical exam life insurance application is fraud and your”
Guaranteed Issue Life Insurance
For clients who may not qualify for traditional or simplified life insurance due to serious health concerns, guaranteed issue is a lifesaver. As the name suggests, you are guaranteed approval as long as you meet the basic eligibility criteria, which typically includes being within a specific age range, such as 40-85 years old. There are no medical exams and no health questions asked.
But there is a catch. While guaranteed issue policies provide protection, they often have higher premiums and lower coverage amounts than other types of life insurance.
If you pass away before the 2 – 3 year waiting period, your beneficiary receives a refund of the premiums paid with interest. After this waiting period, the full death benefit is payable.
But that’s not all!
I’ve got something else for clients looking to cover their end-of-life expenses!
I’m Worried I Won’t Qualify
But there are alternatives if you don’t qualify for a standard policy or no medical life insurance.
My Final Word On Deferred & Guaranteed Issue Life Insurance
I’m happy to offer this product to clients looking for life insurance without a medical exam or a waiting period.
BUT
I always prefer to provide my clients with NO waiting period coverage because it’s less expensive.
However, that’s not always an option. A Deferred or Guaranteed Issue policy is an excellent solution for consumers with serious health issues who cannot get insured through the traditional route.
On the bright side, they now have some coverage, which removes the burden on their family in the medium to long term.
Is not having coverage for 1 or 2 years difficult? Of course, it is. But it’s a lot more difficult not to do anything at all.
Note: Both no medical exam life insurance and traditional coverage offer living benefits. What does this mean? If you are diagnosed with a life-threatening illness and have less than two years to live, most insurance companies will allow you to receive up to 75% of your death benefit before you pass away. This benefit is known as a living benefit, and it is also referred to as an accelerated death benefit or a terminal illness rider.
No Medical Life Insurance Considerations
While no medical exam life insurance can be an excellent option for many Canadians, it’s essential to understand its limitations and how it fits into your overall financial plan. This is a reason to call an independent agent. Because these products are great for some and not so great for others.
1. Higher Premiums – Ouch!
One of the trade-offs for skipping the medical exam is that no medical exam policies tend to have higher premiums. Insurers take on more risk by offering coverage without a detailed look into your health, and they offset that risk with higher costs. If you’re relatively healthy, it might still be worth considering a traditional policy with a medical exam to lock in lower premiums. Remember, small amounts of money snowball over decades. So, on a 20-year term policy, that savings turn into $6,000!
Remember Simplified Issue is much less expensive than guaranteed issue.
2. If You Are Looking for High Coverage Amounts, This May Not be the Product for YOU!
No medical exam policies usually come with lower coverage limits than traditional life insurance. While you can still secure enough coverage to protect your family or cover debts, more than the maximum coverage may be required for individuals with significant financial responsibilities.
3. Waiting Periods
Guaranteed-issue life insurance has a waiting period. If you pass away from natural causes during this period, your beneficiary receives a refund of the premiums rather than the full benefit amount. This is something to consider, especially if you need immediate protection.
This is why it’s important to consult an independent life insurance agent. At Policy Architects, we will assess all your options and find the coverage that costs less and best suits you.
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