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No Medical Life Insurance’s Underwriting Process—let’s Dive In

By Author: Stevie
Total Articles: 9
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Are you in the market for no medical life insurance in Canada? It may seem too good to be true, but it is possible to obtain life insurance without having to go through a medical exam—and this is good news for seniors, those who are required to take prescription drugs, those who have critical illnesses, and more. If for any reason you are unable to get a medical exam, or if you know the information revealed in the exam may cause you to be denied for a policy, a no medical life insurance policy may be right for you.

What Is No Medical Life Insurance?

In Canada, no medical life insurance is just how it sounds—it’s life insurance that is available to you without the prerequisite medical exam. It’s important to note, however, that no medical life insurance is a class of life insurance—it doesn’t limit your options when it comes to the type of coverage you want. The only difference is that you can avoid the medical exam and sometimes even medical questionnaires; however, you will be paying higher premiums to cover the inherent risk the insurer is taking on by not gathering this information.

What Does the Life Insurance Underwriting Process Look Like?

As with any life insurance policy, there are three basic steps to the no medical life insurance underwriting process in Canada. The insurer will first examine the application, will then decide whether to insure the applicant, and will then determine the premium of the policy based on the level of risk involved in providing coverage.

Remember that an insurance company needs to be able to bank enough premiums from you to cover the cost of a final insurance payout. The larger the payout or the shorter the expected period before the claim needs to be paid, the more financial risk the insurance company is taking on. The premiums you are charged are designed to mitigate that risk. As such, the price of your insurance policy is determined by a number of factors, some of which include your age (the older you are the less time you have to pay into an insurance policy before the claim will need to be paid out), your occupation and lifestyle (hazardous jobs and hobbies or unhealthy lifestyle choices also impact your life expectancy, increasing the risk of an earlier payout), and the medical history of you and your family. In cases where medical information is unavailable, the insurance company will need to charge higher premiums in anticipation of worst-case-scenario medical information. This is why it is important for you to disclose as much medical information as possible when you are able—the more you demonstrate your lower health risk, the lower your premiums will be.

The purpose of no medical life insurance in Canada, however, is to ensure that those who have worst-case-scenario medical conditions (or medical histories, etc.) can still get a life insurance policy that they can use to protect their families and dependents.

Remember that your insurance company should go over all of the details of your no medical life insurance policy with you to explain any terms that might be confusing.

Fun Facts About No Medical Life Insurance

Here are a few facts that can help you understand insurance with no medical exam a little better:

• Who can qualify for no medical life insurance in Canada? Anyone can qualify, but those best suited may be seniors, individuals who need coverage quickly, those who are phobic of needles or doctors, those who have a medical condition, individuals who have a dangerous job, those who enjoy extreme sports, and those who have non-resident status.

• What questions might you be asked on your application? You’ll be asked for your name, age, gender, social insurance information, annual earned income, net worth, date of birth, smoking status, etc. You’ll still be asked for information about your medical history if you are applying for a simplified issue no medical policy. Remember that the more information you provide, the more coverage you will be eligible for at a lower cost.

• What is the worst case scenario when I apply for no medical life insurance in Canada? It is very unlikely that you will be denied coverage. At the worst, you will be limited to the highest cost insurance with the lowest death benefit—but you’ll still be eligible for coverage that can help protect your family.

• Are there different types of life insurance with no medical exam? Absolutely. The underwriting process will decide if you are eligible for guaranteed issue (low death benefit and high premium) or simplified issue life insurance (higher death benefit and lower premiums).

Ready to Get Your No Medical Life Insurance Policy?
See? The life insurance underwriting process isn’t really as scary as it may have seemed. For the most part, it involves insurers assessing you to try to get you the best possible coverage based on your personal variables. It is important that you know you have options, though, even when your best bet for life insurance coverage in Canada is no medical.

For more information about different policies, to learn which policy is best for you, or to get a free quote, visit NoMedicalLifeInsurance.ca today.

More About the Author

Hi, I'm Stevie! The management of personal finances is something I've been very interested in since my high school years. I'd like to share some knowledge on the subject and I really hope it'll help someone.

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