No medical life insurance

No medical life insurance is a kind of life insurance policy that you can buy without having to undergo a medical examination. Many people prefer this kind of life insurance because it’s easier and less time-consuming to get, and because it’s an option if you have a pre-existing condition. No medical life insurance is often more expensive than standard life insurance, because insurance companies have less information to evaluate your health, and because people who are in good health tend to opt for standard life insurance policies.

There are two main types of no medical life insurance: simplified issue life insurance and guaranteed issue life insurance.

Simplified issue life insurance doesn’t require a medical examination by a doctor, but may involve a questionnaire about your health. When you apply for simplified issue life insurance, you’ll be asked questions about yourself, including if you’ve been diagnosed with any serious illnesses, if you’ve been hospitalized, and if you’ve been turned down for another life insurance policy. Simplified issue life insurance can be bought as either whole life or term policies.

Guaranteed issue life insurance doesn’t require a medical examination or a medical questionnaire, but you’ll be limited to a much lower level of coverage—often around $25,000 for non-accidental death. For many guaranteed issue policies, if you die within the first two years, your beneficiary will only receive a benefit equal to the payments you’ve made on your policy. Usually when you buy guaranteed issue life insurance, your coverage stays in effect for as long as you continue making payments.

No medical life insurance is best for people who need life insurance but aren’t able to get a standard policy due to health or other reasons:

• If you’ve been turned down for standard life insurance coverage
• If you have a chronic illness such as diabetes, heart disease, cancer, or HIV
• You’ve been convicted of impaired driving in the past
• You work in a dangerous occupation, such as logging, sea fishing, or roofing
• You’re uncomfortable undergoing a medical examination

When life insurance companies issue standard life insurance policies, they use information gathered in a medical exam to help determine how long you’re likely to live. For no medical policies, they have a lot less information to base their rates on, so your premiums will usually be much higher than for traditional life insurance. Factors that will influence your rates include your age, sex, whether you smoke, and how much coverage you choose. If you choose simplified issue life insurance, your premium will also be affected by your answers to the medical questionnaire. To learn more about what factors affect life insurance rates, see our education centre topic What Is Life Insurance.

With no medical life insurance, you’re asked a series of questions about your health but there is no medical exam involved. Because of this, insurance companies are only using limited information to set your premium, so there are less circumstances that could lead to you being denied coverage. The most common reason for being denied no medical life insurance is if you’re older than the maximum enrolment age. Typically, no medical life insurance is offered up to age 75.