March 22

When no medical life insurance makes sense



The Problem

If you are a senior and have pre-existing health conditions or a complicated medical history you know how hard it can be to get life insurance. If you play extreme sports, have gone into bankruptcy, or if you are simply new to the country then it may not be possible for you to secure comprehensive income protection or life insurance coverage. That means if something happens to your health, be it an injury, an illness, or death, you and your family may be left without means to secure your livelihood. Paying your mortgage, debts, or even living expenses will be difficult for you and your family.

Traditional life insurance companies are usually strict when it comes to choosing whether or not they will cover people with diabetes, heart disease, stroke, depression, schizophrenia, cancers, types of arthritis and a host of other medical conditions. Because seniors are statistically more likely to have preexisting conditions and health issues they are often left with the short end of the stick when it comes to qualifying for insurance coverage.

Because we have an aging population, the older you get the harder it is for you to get income protection through a traditional carrier. You will either have to pay much higher premiums or you won’t be able to get the coverage that you need.

Seniors are often concerned about leaving their loved ones with debts or costly funeral expenses should they pass away.

Unfortunately, many Canadians are frustrated because they believe that there is no option for them to get coverage. 

The Solution: No Medical Exam Life Insurance

However, several insurance companies specialize in insuring seniors and high risk individuals who may suffer from many of the above conditions or participate in dangerous activities. Most of them require no medical exam, and some of them even have a very limited health questionnaire which is often limited to only 4 questions.

If you currently suffer from health conditions, or have been denied coverage in the past, not being covered will add more uncertainty and stress to your life. This is especially true for seniors. In this situation it makes sense to look at No Medical exam life insurance, also known as guaranteed issue or simplified issue coverage.

With No Medical Exam life insurance clients will often know exactly what type of coverage they are eligible for after they are done speaking with their advisor. No more uncertainty of knowing whether you are approved or waiting to hear back only to find out that you were denied coverage.

But I’m healthy, why would this apply to me?

To make matters worse, it is not just because of health issues that traditional insurance companies will deny Canadians coverage. Sometimes some of the healthiest individuals in our society are denied coverage because of high risk activities (extreme skiing, bungee jumping etc.) or occupations (army, police, logging workers etc.). If they are covered then most carriers will have exclusions on those kinds of activities. For example, if you have an “exclusion” for your occupation that means that if you pass away in the line of duty your family will not receive a death benefit. In this situation, no medical exam coverage may be a better option for you.

Another reason why people today should consider No Medical Exam life insurance is because in today’s environment, where everything is so fast paced, people may not have the time to meet with a nurse for a medical exam or wait for a doctors report. If you need your coverage quickly, simplified issue no medical exam is an option for you. It is often underwritten quickly, with no medical and a less invasive health questionnaire.

Traditional insurance companies are looking for people in perfect health who have a strong financial history. For those people, getting income protection coverage is not going to be a problem. But people who have dealt with some curveballs in their life are often refused or penalized when it comes to securing coverage.

For example
If you are healthy but you filed for bankruptcy in the past, life insurance carriers may decline or rate you. With many simplified or no medical exam products they don’t even ask you if you have had a bankruptcy.

Imagine if you just came to Canada and because you are new here you do not have a family doctor yet. You will most likely have to face significant hurdles when trying to get life insurance. In some parts of the world certain health conditions are more prevalent. This can make it harder to get approved. With no medical exam coverage, usually a valid work permit is all that is needed to get approved.

Advisors need to get the word out to clients that there is an option for them. People who are hard to insure often need coverage the most and this is a solution for them. Providing them the peace of mind and security of knowing that they and their loved ones will be safe. Finding an affordable way to secure them financially in the event that something unforeseen happens (death, disability, a life threatening illness) is critical.

If you think that you may be hard to insure you should get in touch with an independent insurance broker. Their knowledge of all the various insurance companies can save you thousands of dollars in premiums. By completing a Health & Lifestyle Evaluation with your advisor you can know what the most affordable type of coverage for you would be.

Everyone should have access to life insurance protection. All you need to do is get in touch with a licensed insurance advisor who can help you, just request a free quote.

Having access to these sorts of policies enables advisors to deliver coverage to the sort of hard-to-insure people who need it most. Most of the population will be able to get traditional life insurance coverage but for the growing percentage of people that cannot, this may be the answer they are looking for.

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