Why No Medical Life Insurance Is So Expensive

No medical life insurance is often the best fit for people who would not qualify for regular insurance. But no medical life insurance usually runs a higher price tag than regular insurance policies. Thinking about applying for no medical life insurance but concerned about how expensive it is? Here are some reasons why no medical life insurance is so expensive (but worth the cost).

High Risk, High Cost

Want a life insurance policy without the hassle of submitting to a medical exam or fulling out lengthy questionnaires? No medical life insurance may be the best fit for you! With no medical life insurance, you don’t have to submit to a medical exam. No medical exam? That means absolutely no needles, no test, no urine samples. Sound too good to be true?

If price is an issue, it just may be. No medical life insurance in Canada tends to run a higher price-tag because insurance companies are taking on a bigger risk by insuring someone that they don’t have a lot of information about. Put simply, the less information an insurer has about an individual, the more likely the insurer is to increase monthly payments. Many people opt for traditionally underwritten policies because it saves them money in the long wrong.

Insurers rely on a concept called the law of large numbers to provide coverage while minimizing risk. Essentially, the law of large numbers stipulates that while it may be very difficult to predict the outcome of an individual event, it is far easier to predict the outcome of multiple events. A smoker, for example, may live into his 90’s in perfect health, but the average smoker has shorter lifespans and a higher chance of developing chronic or terminal health conditions. As no medical life insurance in Canada gives applicants life insurance with no medical exam, insurers take on a higher risk. That’s why no medical life insurance often comes at a higher premium.

Different Types of No Medical Life Insurance

No medical life insurance in Canada may be more expensive than other traditional insurance policies, but it may be the best option for your peace of mind. First off, there are different kinds of no medical life insurance. Not all insurance companies are equal, and not all insurance policies are the same.

There are two types of no medical life insurance: guaranteed issue life insurance and simplified issue life insurance. With a guaranteed life insurance policy, an individual will receive coverage regardless of their health status. There is no medical exam and no medical questionnaire. However, guaranteed issue life insurance limits the amount of coverage a person can have—it usually caps around $25,000 for accidental death.

Simplified issue life insurance requires no medical exam but applicants to have to fill out a short health questionnaire. Coverage is typically higher than guaranteed issue life insurance, but applicants will have to disclose any past or present health conditions.

Who is No Medical Life Insurance For?

While no medical life insurance runs a higher price than traditional insurance policies, it is still often the best bet for people who are advanced in age, have a history of health problems or are currently diagnosed with a health condition, or live a high-risk lifestyle (smokers, drug users, people employed in high-risk jobs, such as deep-sea fishing).

Depending on your age, health, and lifestyle, and the type of no medical life insurance policy you choose, the benefits of no medical life insurance may outweigh the cost. If you’re interested in finding out more about no medical life insurance, and the types of policies that are available to you, you can request and compare free quotes on https://nomedicallifeinsurance.ca/, which works with over 20 leading insurance companies in Canada.

No medical life insurance can provide you and your family with security and peace of mind. Don’t delay. Find out what type of coverage you qualify for today.

Hi! I'm Stevie, and I'm interested in everything that surrounds the topic of personal finance. I hope my articles will be of some use to my readers!