Fact CheckedAre you googling Life Insurance Canada No Medical Exam? Well then, I have some terrific information for you!
One of the most challenging parts about getting the right life insurance policy is wading through all the information.
Sure, some automated systems claim to do all the work for you, but in my opinion, nothing beats the personal touch.
So, grab a coffee and dig into the best no medical life insurance guide in Canada.
Let’s find out if the promises made by non-medical life insurance companies are too good to be true? Is it really possible to buy life insurance without a medical exam?
Can You Get Life Insurance Canada With No Medical?
YES, you can get life insurance without the hassle of a medical test.
The best part? It’s affordable and fast.
That said, some medical issues like a history of cancer, heart disease, stroke, and diabetes may make your premiums more costly.
It’s important to remember that life insurance is essential for a comprehensive financial plan. It provides peace of mind for you and your family by offering a safety net in case of an unexpected death.
However, for many Canadians, especially those with pre-existing health conditions, the traditional life insurance process involving medical exams and underwriting can be stressful and intimidating. This is where no medical life insurance comes in.
So What is No Medical Life Insurance?
No medical life insurance means what it says: no blood tests, urine tests, needles, or physical exams required. Typically, life insurance providers request a complete medical test, including blood, urine, and vitals.
This underwriting process can be daunting, particularly for those with pre-existing conditions or people who prefer not to undergo intrusive medical evaluations.
However, the no-exam application process only involves answering very specific health questions. For example, “Within the last 5 years, have you been diagnosed with or hospitalized for chronic kidney disease…or undergone dialysis?
All the medical questions are “yes” or “no”. The more you can answer “no,” the better.
Answering ‘no’ to all the questions is the best-case scenario. This means you qualify for the most affordable no medical life insurance in Canada.
Worst case scenario? You answer “yes” to one or more of the medical questions at the beginning of the application.
Unfortunately, this could limit you to Guaranteed Life insurance, the most expensive non-medical product out there. It’s designed for consumers with severe or life-threatening conditions and always comes with a 2-year waiting period.
Remember, life insurance is a business; companies do their due diligence to determine the risk before insuring you.
No-medical policies, also known as “simplified issue”, are particularly popular with individuals who have moderate health issues, those needing coverage fast, or those who prefer to avoid needles and nurses altogether.
No Medical Life Insurance Comes in Three Tiers
TIER 1: Level Benefit (Elite, Platinum, Immediate Plus) – For Consumers in good health who may have moderate health issues
Congratulations! This is the section for you if you are in reasonably good health and looking for affordable life insurance without a medical exam.
You answered “no” to all or almost all of the health questions on the application. As a result, you’re eligible for the best no-medical life insurance at the best price!
Now, you can buy a simplified Issue term or whole life policy. Depending on the carrier, you can purchase coverage from $5,000 up to a maximum of $750,000. If that’s not enough, you can combine coverage with other carriers.
For example, you could purchase a $500,000 policy from a carrier like Canada Protection Plan and add another $500,000 policy from Industrial Alliance for $1 million of total coverage. This practice is known as stacking policies and is totally legal.
Immediate Coverage – NO waiting period
Without exception, all Tier 1 coverage goes into force immediately. If, God forbid, something happens to you nine months from now, you’re covered.
TIER 2: Deferred/ Modified (Deferred Elite, Silver, Deferred Plus) – For consumers with moderate to serious health issues
Are you interested in finding out what happens to clients who answered “yes” in the 2nd or 3rd group of application questions?
They’re categorized as “deferred” or consumers with moderate health issues. One example of this would be someone who’s had a stroke or heart problem in the past. You’ll may fall into this tier if you’ve had any of these issues within the last few years.
Don’t worry; you still qualify for coverage. However, the cost is slightly higher than Tier 1, and the policy is issued with a waiting period. This means you start paying premiums but are not covered from day one.
Remember, the term Deferred is what insurance companies use to identify this category. So, anytime you see that word on a product, there is some kind of waiting period attached.
Many consumers lose interest as soon as they hear about a waiting period. Still, please ensure you understand precisely how a deferred policy works before dismissing it altogether. Often, it’s the best way to put some protection in place long-term and better than taking no action at all.
But what if you had a stroke or heart bypass a long time ago? Do I still have a waiting period?
Probably not, if you had any of these issues more than a few years ago, you still have a good shot at Tier One coverage!
How does a waiting period work?
If you die of natural causes within the waiting period of the policy (usually two years, sometimes one), the insurance company won’t pay out the full death benefit.
If I die within the waiting period, what happens to all the money I paid into my policy?
The good news is the insurance company refunds any money you paid into your policy back to your family, plus interest.
Hey, this is a reasonable deal if you ask me.
Worst-case scenario? If you die within the 2-year waiting period, your beneficiaries get all your money back plus simple interest.
Best case scenario? You survive the waiting period, die of natural causes, and the full death benefit is paid out to your family.
It’s important to know the waiting period does not apply if the death is accidental.
Modified: One-Year Waiting Period
Some products, like Assumption Life’s Silver Protection or Canada Protection Plan’s Deferred Elite, come with a one-year waiting period and 50% reduced death benefit in the 2nd policy year.
So for example, if death occurs accidentally or after the 2nd policy year, the full death benefit is paid out. If death occurs in the 2nd policy year, 50% of the death benefit is paid out. If the insured dies within the 1st policy year, the death benefit is a return of premiums to the beneficiaries.
I think these plans are a viable option for somebody is unable to get coverage through a traditional carrier or has been declined.
NOTE* There’s something wrong if you believe you’re healthy and have received a no-medical policy with a 2-year waiting period. Unfortunately, some products automatically come with a waiting period regardless of whether you have health issues or not. So call us and review your policy; there’s a good chance we can find you something cheaper with better guarantees, it happens all the time.
TIER 3: Guaranteed Issue – For consumers with sever to life-threatening conditions
There’s good news and bad news when it comes to Guaranteed Issue Life Insurance.
The good news? You cannot be denied coverage. Regardless of your state of health, whether you are terminally ill or recently had an organ transplant, you qualify. That’s why some folks call it “last resort” life insurance.
What’s the bad news? Like anything else, if it looks too good to be true – there’s usually a catch.
All Guaranteed Issue policies come with a 2-year waiting period and are more expensive than Tier one or Tier two plans.
They also have Limited Face Amounts: Guaranteed issue coverage usually caps out at $50,000.
Avoid Graded Insurance & Age Based Premiums
Watch Out For Graded Insurance and Age Based Premiums!
This means the premiums paid are NOT guaranteed and increase every few years. At Policy Architects, we NEVER recommend graded policies or age-based premiums for our clients.
Will I Qualify For No Medical Life Insurance Canada?
If you’re reading this article, you may think you are too high risk to qualify for Tier one no medical coverage.
Well, I have some GOOD NEWS for you! Most people are healthier than they think they are! Of course there are exceptions but I find that many people are surprised that their health condition doesn’t disqualify them from approval.
Remember, YOU’RE not an underwriter. How you feel about your health isn’t necessarily how an insurance company evaluates you. I’ve met far too many people who don’t even apply for no-exam life insurance because they assume they’ll be turned down.
You’re healthier than you think!
The thing is, most medical conditions don’t put you into the Guaranteed life insurance pool.
The agents at Policy Architects will find you the most affordable life insurance without a medical exam on the market, period. We know this niche inside and out.
Here are some great resources if you have a specific ailment and want to read up on it:
Let’s Take a Peek at Some Sample Application Questions
In no particular order, here are examples of questions you might expect to see on a no-medical life insurance application:
- Are you incapable of independently carrying out two or more of the basic activities of daily living, such as getting up, walking, washing, toileting, dressing, or feeding?
- Are you currently a resident of a nursing home?
- Have you ever been diagnosed with a critical or terminal condition for which a doctor has estimated that you have 24 months or less to live?
- Within the past three years, have you been treated for the use of drugs and alcohol?
- In the last two years have you been hospitalized for COPD?
- Have you, within the last five years, been told to have or received treatment for cardiac chest pain, heart attack, coronary artery disease,…or undergone coronary angioplasty, with or without stent insertion?
- In the last 3 years, have you been treated for any form of cancer excluding basil cell carcinoma?
- Has your driver’s license been suspended or revoked in the past two years?
- Is your weight outside the range shown for your height in the table below?
Can I just skip these questions?
Sure! But your options are limited to guaranteed life insurance if you do.
NOTE* Simplified-issue life with questions is ALWAYS preferable to coverage that doesn’t require you to answer any medical questions. This means the underwriting has been done up front rather leaving it all for claim time. The fewer questions asked, the poorer the coverage and the higher the risk of a claim being rejected. Banks are notorious for selling plans with few questions and underwriting that is done at claim time.
Final Expenses
One of the most popular ways to use a no exam life insurance policy is for final expenses.
No one wants to think about dying, but the fact is there are two things in life you can’t dodge, and that’s taxes and death.
Funerals can be expensive. A small final expense plan will remove the burden of funeral costs and make life easier for your loved ones.
No Medical Life Insurance Canada Process
The beauty of no medical life insurance is that it’s quick and easy. The whole process can be completed in less than an hour.
Here’s a quick breakdown of the process you’ll go through to set up your no-medical life insurance in Canada:
STEP 1: Book A Call With Us
Our initial consultation will determine your accurate rating class and the Tier of no medical coverage you’ll qualify for. This phone call takes approximately 5 – 7 minutes.
This session gives you an accurate idea of the cost and details of the coverage. Depending on your medical history, it also helps us determine which carrier offers the best solution.
Always remember life insurance companies are NOT created equal.
STEP 2: Application
We complete your application online over the phone. This usually takes 20-30 minutes, and we ask you a series of particular health and lifestyle questions. Once the application is complete, you execute an electronic signature via email or text, and we submit it to the appropriate carrier. You’ll receive documentation throughout the process.
STEP 3: Time To Wait
Now, we wait for the application to be processed, which usually takes 24 to 72 hours. Once we get approval from the carrier, the coverage can be put into force immediately.
This is another great reason to get no-medical Life Insurance in Canada! If you’re traveling and need last-minute coverage, nothing beats it.
Why No Medical Life Insurance Should Be Plan B
Make sure to keep the following information in mind:
Usually, traditional life insurance that requires a medical exam is the most affordable option. If you’re in good health, don’t mind undergoing a medical exam, and have some time on your hands, apply for full medically underwritten life insurance.
This is because:
- The underwriting process is done upfront
- It is typically less expensive
- You can get more coverage
- You have better protection and more conversion options
However, if you have moderate to serious health issues, participate in extreme sports, have a dangerous occupation, or are heavy cannabis user, No medical life insurance is your best bet.
No Medical Life Insurance Is GROWING
No-medical or simplified-issue life insurance is one of the fastest-growing sectors in the Canadian life insurance industry.
As a result, insurance companies are increasing the number of no-exam products to meet the demand.
No medical life insurance is ideal for Canadians with health issues that affect their eligibility for affordable coverage with traditional carriers.
Working with an independent agent who knows this market inside and out is essential, as there are vast differences between the no-medical carriers. Choosing the wrong company can mean paying higher premiums and receiving substandard guarantees.
Call us today! We can help.
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