If you’re young and healthy, you’re likely not thinking about dying any time soon – but there are lots of reasons why you should consider buying life insurance now. A life insurance policy provides financial protection for your family in the event that you die prematurely. The insurance money is intended to help cover your debts or expenses, leaving your family with peace of mind.
Back in the day, life insurance was only available to the young and healthy because to obtain it, you had to take a medical exam. Today, no medical life insurance is becoming increasingly more popular among young Canadians, even though they could easily pass the medical. What is going on?
We will get to the bottom of this but first, let’s take a closer look at no medical life insurance.
What is no medical life insurance?
No medical life insurance is a type of insurance that is available without a medical exam. No medical life insurance is ideal for those who would not otherwise be approved for traditional (aka standard) life insurance that requires medical tests. The drawbacks of no medical insurance include lower insurance coverage and more expensive premiums when compared with the premiums for the same coverage of a traditional life insurance policy.
You should consider no medical life insurance if:
- You have a serious a health (e.g. diabetes) or fitness (e.g. overweight) pre-condition that does not allow you to qualify for a standard life insurance policy.
- Your age is an obstacle in getting a traditional life insurance policy because some policies only cover their policy holders up to a particular age.
- A medical exam is not something you want to go through due to personal reasons.
- You want a “quick” insurance solution that offers a small amount of coverage without any delays.
Simplified Issue Insurance vs. guaranteed Issue Insurance
If you are considering buying no medical life insurance, make sure you understand the different types of insurance available. There are two categories of no medical life insurance:
- Simplified issue life insurance: this option does not require a medical exam but individuals are required to answer a number of health-related questions. Typically, the more questions, the lower your premiums. A simplified issue life insurance policy will usually have a maximum limit of $300,000. If you have already been denied life insurance in the past two years, you may not qualify for this type of no medical life insurance.
- Guaranteed issue life insurance:this option also does not require a medical exam and no health-related questions will be asked. Anyone can purchase guaranteed issue life insurance, even if you have been denied in the last two years. The big difference here is that coverage is limited to up to $25,000 and payout restrictions apply during the first two years of coverage.
So, Why are Young and Healthy Canadians Going for No Medical Insurance?
Since there is no medical exam, no medical life insurance is very quick and easy to get. Traditional policies take weeks to process, and time must be devoted to the application and the medical. Simplified issue can often be applied for online with a broker or even obtained over the phone. Additionally, the lower coverage limits are still sufficient for most young families.
Convenience is the driving factor for busy young Canadians choosing no medical life insurance.
How to Find No Medical Life Insurance
Our mission is to help Canadians find the best and most affordable life and living benefit insurance solutions in Canada. Serving Canadians for over 25 years, LSM is one of the oldest most respected life insurance brokerages in Canada, and our experienced and knowledgeable insurance brokers understand the hard-to-insure. We have access to over 20 Canadian insurers, giving you more options. Contact us today and let us help you find the right no medical insurance coverage.