Looking for no medical exam insurance? There’s a few things you should be aware of, a few assumptions that TV commercials and high hopes may lead you to believe. No medical exam insurance can be great stuff for the right people – but be aware it’s not just regular insurance at regular premiums but with the medical exam removed.
Traditional insurance policies require medical exams. Now in most cases, the medical exam is not nearly as burdensome as you might expect – it’s not like a Dr’s medical exam.
Fully underwritten vs no medical exam
Medical exams for most traditional life insurance policies consist of two parts, a medical/phsyical part, and a medical questionnaire. Both parts are completed by a paramedical who will book an appointment with you to come to your house. The physical part normally consists of nothing more than a quick blood test, a urine test, height and weight, blood pressure and heart rate. It’s all over in less than 5 minutes. The questionnaire part will be much more extensive, the paramedical will ask you for details on your entire medical history. In the end a medical exam for life insurance normally takes about 1/2 an hour.
Now lets think about premiums for a second. What do you think the premiums for car insurance would look like for 1000 drivers who’ve had their driving record investigated completely and only the best accepted? Now, what do you think the premiums for car insurance would look like for a policy where the company advertises ‘we’ll accept any driver and we won’t even check your driving record!’. Clearly the second group of drivers is going to consist of a much higher risk group. That means more claims and that means higher premiums.
Compare premiums and benefits
The other alternative to higher premiums may be to limit benefits, or restrict the conditions under which benefits would be paid.
The same is true for no medical exam insurance. Something has to give – you can’t have insurance where no medical exam was done with identical features and benefits to a plan where they’ve done a full medical exam.
And in fact that’s what happens. No medical exam policies typically use a combination of higher premiums or lower benefits in exchange for not taking a medical exam. Knowing the difference in premiums and benefits can help you decide if you should go with a fully underwritten policy with a medical exam, or skip all that and go write to a no medical exam policy. You’ve probably seen those TV commercials offering no medical insurance to Canadians – and you’ll also probably recall the last thing they normally say – “limited benefits in the first two years”. That’s because there’s some benefits that have been scaled back as the result of no medical exam being taken.
See the at the top of this page for further details of the different types of no medical exam insurance.