To buy life insurance online with no medical exam is sure a tempting option! 

It’s a little bit like having your cake and eating it too!

This type of insurance is created for people just like you and me, who are busy with kids or career and have too many things they’re juggling.

The process is fast, simple, hassle-free and can provide you with immediate insurance coverage. In fact, you can apply RIGHT NOW and have protection for your family in place in as little as 24 – 48 hours!

So technically there is a slight waiting period – but it is really pretty instantaneous. 

…and sure you can complete the application right on the website of the insurance company you pick…RIGHT???

Hmm, maybe not – if it seems simple there’s usually a catch! 

Congratulations! If you are in good health and looking for affordable life insurance without a medical exam,  this is the section for you. 

You answered “no” to all, or almost all, of the health questions on the application. As a result, you’re eligible for the best no medical life insurance at the best price!

Now you have the option of buying simplified Issue term life insurance or a whole life no exam policy. Depending on the carrier, you can purchase from $25,000 up to a maximum of $500,000 of coverage. If that’s not enough, you also have the option of stacking policies.

That means you can buy a maximum of $500,000 or protection from Canada Protection Plan. Then you can add another $300,000 policy from Industrial Alliance. That brings your total non-medical coverage amount to $800,000. Not bad. 

To give you an idea of the premiums you pay, let’s use that 65-year-old male non-smoker again. His premiums are $46.67 per month for $10,000 of whole life no exam insurance through Canada Protection Plan. With Industrial Alliance, he pays $45.50 monthly for the same product.

Again, It’s important to keep in mind that no medical life insurance is more costly because you’re paying for the convenience of not having any health or physical tests.

Without exception, all Tier 1 coverage is issued with No waiting period. That means your no medical life insurance policy goes into effect immediately. If God forbid, something happens to you 9 month into your plan, you’re covered. 

NOTE* If you’re healthy and you have a no-medical policy with a waiting period, there’s something wrong. Call us. Let us review your policy. I’ll bet you we can find you something cheaper with better guarantees. 

There are companies like Assurant Life of Canada, who put most of their applicants into the “higher-risk” pool. That means if you have a mild health issue, your Assurant funeral insurance plan will likely come with a 2-year waiting period. Not to mention, their plans are the most expensive on the market. 

...interested in finding out what happens to clients that answered “yes” in the 2nd or 3rd group of application questions?

They’re categorized as “deferred” or consumers with moderate health issues. An example of this would be someone who’s had a stroke or heart problem in the past.

What if you had a stroke or heart bypass a long time ago? That’s a great question. 

The beauty of the 2nd Tier is: If you’ve had any of these issues and it’s been more than 2 years ago, you may still qualify for Tier One coverage.

The term Deferred is what most insurance companies use to identify this category. So whenever you see or hear the word, “Deferred”, it means the product you have has some kind of waiting period. 

Not to mention, Deferred products come with lower maximum coverage amounts as well, This is another way for life insurance companies to reduce their risk of making larger payouts.

This coverage is available as Term or whole life no exam. But there is one more thing you should know..

How does a waiting period work?

If you take out one of these plans and die of natural causes within the first one or two years of the policy, the insurance company will NOT pay out the death benefit.

They will, however, refund all the money you’ve paid into the policy. This cash goes back to your beneficiaries plus interest.

Please note, you are covered for accidental death from day one of the policy. 

Hey, this is a pretty good deal if you ask me. 

What’s the worst-case scenario? You pay the premiums and die from non-accidental causes within the first 2 years.  Your beneficiaries get all your money back plus simple interest.

….or better yet, you make it past the 2-year mark and the full death benefit is paid. 

The insurance company you select may have waiting periods and/or conditions. This is something you should completely understand before you sign on the dotted line.

Just so we’re comparing apples to apples, that 65-year-old male non-smoker we talked about before pays $51.02 per month for $10,000 of Standard Protection Permanent Insurance with SLi Insurance.

With Canada Protection Plan, he spends $53.17 per month for similar coverage. So in this case, it seems like Specialty Life insurance is the better deal. But not so fast. CPP Deferred Elite has a one-year waiting period compared to a 2-year waiting period with Specialty Life.

Personally, I’d rather spend a couple of dollars more per month to secure a plan with a one-year waiting period.

There’s good news and bad news when it comes to Guaranteed Issue Life Insurance. 

The good news? You cannot be denied coverage. Regardless of your state of health, whether you are terminally ill or recently had an organ transplant, you qualify. That’s why some folks call it “last resort” life insurance.

What’s the bad news? Like anything else, if it looks too good to be true – there’s usually a catch. 

“There is also one big caveat you have to understand if you are going to buy a guaranteed issue policy…if you die (other than as a result of an accident) within two years of buying the policy, you only get the premiums paid refunded. You won’t get the full death benefit.”

Who Should Buy Guaranteed Issue Life Insurance – A Surprising Answer, Wealth Pilgrim 

Guaranteed life insurance coverage amounts usually begin at $5,000 and cap out at $25,000. Specialty Life Insurance (SLi) and Empire Life, however, will go up to a $50,000 death benefit.

This is another reason to contact an independent life insurance agent. We know all the deets!

Once again, the only real no exam, no questions life insurance is guaranteed issue and it may be the right fit for you if you’re otherwise uninsurable.

The downside? Because you know there always is one…or two. It’s really expensive and you’re limited to lower coverage amounts.

Also, some carriers like Specialty Life Insurance have graded premiums. What does that mean? Your monthly cost goes up every few years and is not guaranteed to stay level. 

How much does Guaranteed Issue cost? To give you an idea of what can be expected: $10,000 of Canada Protection Plan’s Guaranteed Acceptance Life runs a 65-year-old non-smoking man $89.98 per month. With Sli Insurance, the same amount of their Guaranteed Protection costs $77.68 per month.

The $77.68 per month sounds like the better deal doesn’t it?

Well, it’s not. Specialty Life’s Guaranteed Protection is graded insurance. So is their final expense insurance. That means the premiums paid are NOT guaranteed and increase every few years.

For example, when this 65 year old hits 70, his costs jump up to $93 per month, and when he turns 75, his premiums increase to $116.52 per month and so on.

On the other hand, with Canada Protection Plan‘s Guaranteed Acceptance Life, the monthly premiums NEVER increase over the life of the policy.

Whether this gentleman is age 65 or 80, he continues to pay the same $89.98 per month. Which plan would you choose?

You can see how speaking with an independent agent can save you some serious cash and help you avoid some costly pitfalls like Sli’s graded life insurance.

At Policy Architects, we NEVER recommend graded policies for our clients.

Is this a product I’m happy to offer my clients looking for life insurance no medical exam no waiting period?

Yes and No.

I always prefer to provide my clients with coverage that has NO waiting period.

However, that’s not always an option. Guaranteed Issue is a great solution for consumers with serious health issues who would otherwise be impossible to get insured. But it’s costly.

On the bright side, it now puts them in the position of having some coverage that removes the burden on their family long-term.

Is not having coverage for 1 or 2 years difficult? Of course, it is. But it’s a lot more difficult to not do anything at all.

I think a lot of confusion comes from people that simply don’t have enough information about the process. 

Seriously, I think half the battle to get clients insured is lifting the lid on the many myths that are floating around.

The underwriting medical exam really is a very simple process. It’s not some crazy invasive physical. Not to mention that fact that if you qualify for a fully underwritten policy you save a BOAT load of cash. 

Another thing to bear in mind, you’re never going to pull a fast one on a life insurance company. If you’re on your deathbed and apply for No Exam Life Insurance, the insurer will figure it out. 

Let’s take a look at the questions they ask to shed some light on my thoughts:

We all know life insurance premiums, especially Term, get more expensive as we get older.

If you’re younger, even in your 40’s, you should do your best to lock in lower rates while you still can!

Once you reach the age of 50, the cost starts to go up significantly year after year (approx. 5-8%)…

…even if you don’t have health issues.

However, if you’re healthy and looking for a smaller amount of life insurance coverage for final expenses, the cost difference between traditional and non-medical life insurance can be pretty narrow.

Also, most traditional carriers don’t offer coverage amounts below $25,000 or $50,000.

So it may make sense for you to consider this route for your cremation or funeral.

Learn more about final expense insurance here.