Everything you need to know about No-Exam Life Insurance in Brampton and Hamilton

/ Life Insurance / Nov 15, 2021

The need for a medical examination can justifiably encourage people to push their “life insurance policy” down their to-do list. Although the medical exam is a relatively painless procedure, it does take a big chunk of time out of your day. And then, frankly speaking, no one likes needles.

These days, there are options available in the market for a no-exam life insurance. These life insurance options ask minimal health questions online and adjust their premium rates accordingly as a result of your health ambiguity. There are also others who do not ask any questions at all.

But then, what are the trade-offs? Are no-exam life insurance plans really worth your money? Let us see.

No-exam Life Insurance – The Catch

The catch always lies in the premium amount you are willing to pay for your policy.

Medically underwritten coverage is often less expensive in comparison to a no-exam policy, especially if you are fairly healthy. Yes, you will have to take a health exam but it should not be an issue considering the money you can save in the long run.

Since you are providing the life insurance company with the most accurate diagnosis of your health, they will provide you with the best possible rate for your policy. But, if you are okay with the premium tradeoff, consider going for the no-exam life insurance.

How much coverage can you get without a medical examination?

All life insurance companies are risk management businesses. As a result, they will limit the coverage amount you can get without a proper medical examination, just to protect themselves.

You may not lie on your insurance questionnaire, but then, you might have a condition that you may not even be aware of (such as sugar, high blood pressure, etc.).

The life insurance company will consider these unknown factors in your coverage amount, and hence, the coverage amount varies depending on the type of your policy.

Types of Life Insurance you can get without a medical examination

No-exam life insurance options are limited. Here are a few to consider:

Simplified Issue Life Insurance

Just like the name, this is a policy that is quite “simple.”

You will have to fill up a short health questionnaire. The insurer decides on your coverage amount. You don’t opt for the medical exam – and that’s it. You either get your coverage or you don’t.

The cost is hefty though. Here is something you should always be aware of  – The less the insurer knows about you, the less affordable the plan is.

You will typically have to pay more for a simplified issue life insurance than a medically underwritten one. You may also not get the right amount of coverage you are aiming for because it always comes with a limit.

Guaranteed Issue Life Insurance

As the name suggests, this life insurance guarantees coverage to all applicants regardless of health, age, or medical history – no health exam required.

The coverage amount is limited to an estimated $50,000. That is nowhere feasible if you are young with kids, especially when there are long-term needs, like education costs, mortgage, and so on.

Guaranteed life insurance is suitable for end-of-life expenses. Hence, it is often called a final expense policy because it covers any costs associated with you, dying.

Guaranteed life insurance is typically cheaper than a Whole Life or Universal Life Insurance policy, but the coverage amount is severely limited. It can be a good option only if you want to cover your end-of-life expenses such as funeral costs.

Also, these policies typically pay only after a certain number of years (usually 3) have transpired. This is done to prevent people from opting for this policy when they know they don’t have much time to live. And that includes deaths as a result of natural causes.

Accidental death insurance

These policies provide a lump sum amount to your beneficiaries in case you die in an accident (such as workplace injury, car crash, or homicide).

Few policies may also cover paralysis, dismemberment, etc. in the form of living benefits.

Death from common illnesses such as heart disease, cancer, stroke, etc. are not covered. Coverage is typically capped to an amount of $500,000.

So, what should you choose?

  • If you do not want to opt for any medical tests under any circumstances, opt for a Simplified Issue Life Insurance policy.
  • If you want to get the best deal in terms of money, go for medically underwritten Term Life Insurance in Mississauga, Toronto, Canada.
  • If you want insurance and are concerned of your ineligibility due to serious health reasons, go for Accidental Death Insurance or Guaranteed Issue Life Insurance.
  • If you want over $500,000 coverage, go for medically underwritten Term Life plans.

Finally, we would say it is always better to discuss with an experienced financial advisor before coming to any decision. An experienced financial advisor will assess your situation and provide you with the best possible solution in terms of your life insurance needs.