Financial Literacy

Who should get no medical life insurance?

By: Renee Sylvestre-Williams on August 15, 2023
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If you’ve been considering life insurance, you’ve probably heard that you need to undergo a medical exam as part of the approval process. But let’s be honest. Having to book and undergo a physical is time-consuming and, for some, anxiety-inducing, especially when all you want is a way to provide for your family when you’re gone. Enter no medical life insurance.

What is no medical life insurance?

Like the name indicates, no medical life insurance is a form of life insurance you can buy without having to go through a medical exam. People who opt for this type of life insurance will often choose it because they have a pre-existing medical condition or because it’s easier and less time-consuming than traditional life insurance policies.

No medical life insurance is becoming increasingly popular, according to Jiten Puri, founder and CEO of PolicyAdvisor life insurance brokerage. Puri says that no medical life insurance has seen a lot of adoption across the insurance industry due to a greater demand as well as increased sophistication in the underwriting programs available.

“It’s a terrific product,” says Puri. “Because most no medical insurance doesn’t need face-to-face interaction, a company will be able to underwrite a consumer based on the information they provide digitally. It’s a much quicker process and consumers seem to want it given how much faster a policy can get approved.” 

There are two types of no medical life insurance. The first is simplified issue life insurance, which may require you to fill out a questionnaire about your health, including whether you smoke or have had any serious illnesses. The other type of no medical life insurance, Guaranteed issue life insurance, doesn’t require either an examination or questionnaire. 

Who should get medical life insurance?

As with all insurance products, your requirements will determine the coverage that’s right for you. No medical insurance isn’t just for people who can’t get traditional life insurance. It’s a product that has adapted to the wants and needs of digitally savvy consumers who expect a quality product and rapid response.

You may want to consider no medical life insurance if: 

  • You have a pre-existing or previous health condition such as cancer, diabetes or heart issues that disqualify you from traditional life insurance 
  • You’ve been turned down for standard life insurance 
  • You are uncomfortable with having a medical exam 
  • You work in a dangerous profession
  • You need life insurance immediately
  • You have a hard time getting standard insurance due to your age

Related: How much life insurance do I need?

What’s the catch? 

While no medical life insurance is quick and available to people who may not qualify for standard life insurance, it does have a catch. 

Puri says that the premiums are often higher than standard life insurance.

“That’s because the carrier knows less about [the consumer] and wants to charge a higher premium,” he says. 

As well, some carriers will still require a medical exam for certain thresholds of coverage, but Puri has seen some carriers offer up to one million dollars in coverage on a no medical life insurance policy. Whether you qualify for a large amount will depend on your age and health. 

Still, the higher cost of no medical life insurance isn’t stopping consumers from buying it. 

“We’ve seen that they’re willing to pay that higher premium to get the benefit of faster fulfillment,” says Puri. “They’re buying the experience and that’s easily catered to by simplified no medical policies than by traditional fully-medically underwritten policies.”