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Is no medical exam term life insurance really an option?
Yes! To the surprise of many Canadians, no medical exam term life insurance is an option. Not all term life insurance applications require a physical exam. But it’s worth understanding when an exam may be required.
There are two major categories of term life insurance: underwritten and no medical (also known as simplified issue or guaranteed issue.)
Life insurance is all about risk. Term life insurance companies want to provide you with insurance coverage, but they also need to understand how risky you are to insure.
With underwritten term life insurance policies, the insurance company will assess your risk in a process called underwriting. While most individuals don’t require a medical exam, underwriters will review all factors before approving your application. If they need more information, they may request medical tests to better inform their decision.
In Canada, no medical term life insurance is a type of product that guarantees no medical exam in the application process. In many cases, you don’t even need to answer any medical questions. Canadians often choose no medical term life insurance if they are concerned about the impact of health conditions on rates and eligibility or have previously been denied coverage.
No medical term life insurance policies sound great in theory. But because insurance companies aren’t able to assess your medical risk, these policies often come with rates that are 30-40% higher than underwritten policies. Insurers also typically offer less flexibility, setting lower coverage and term length limits.
So, for many Canadians, it’s worthwhile to apply for an underwritten policy first. With companies like Blue Cross Life, you can find out if you’re approved by simply taking 20 minutes to fill out a quick questionnaire. You might find that you don’t require a medical exam. And even if you do, completing a medical exam may be simpler than you think.
If you've been denied coverage in the past, keep in mind that your circumstances may have changed, and different insurers have varying eligibility requirements.
When term life insurance might not require a medical exam
Based on your initial application, if an underwriter is confident your risk is low, they will likely approve you without a medical exam. Term life insurance might not require a medical exam in situations where the applicant is:
- Younger in age: Many underwritten policies do not require a medical exam for healthy adults under 50 years old, depending on the amount of coverage selected.
- Healthy: Individuals with no serious health conditions or risky lifestyle factors, such as smoking, may not require a medical exam.
- Applying for lower coverage amounts or shorter term lengths: The shorter the policy and the smaller the coverage amount, the less likely a physical exam is needed.
Keep in mind that with underwritten term life insurance policies, there’s no guarantee you won’t need a medical exam. You may be young, healthy, and applying for less comprehensive coverage, but an insurer may still request a medical exam—even though it’s less likely.
When a medical exam is required for term life insurance
When an underwriter needs more information to evaluate your overall risk, they may request a medical exam before determining your premiums and eligibility.
Factors that determine if an exam is needed
Common factors that may require specific testing for your term life insurance application include:
- Coverage amounts: Higher coverage amounts can trigger a medical exam.
- Term lengths: Longer term lengths may require a medical exam.
- Age: Adults over the age of 50 may require medical exams for most coverage amounts.
- Health history: Pre-existing conditions can trigger a medical exam.
- Lifestyle and habits: Risky lifestyle habits, including smoking, may require a medical exam.
Generally, there’s no single factor that determines if an exam is needed. Insurance providers look at your entire application to make a decision. The additional information required may also vary depending on your situation, ranging from basic fluid and vital exams to requesting motor vehicle reports.
What to expect if a medical exam is requested
If you’re asked to complete a medical exam as part of your term life insurance application, don’t panic. It sounds scary and stressful, but the process is a lot simpler than most people think. You typically won’t need a family physician or to find your own doctor or walk-in clinic.
With Blue Cross Life, an advisor will connect you with Dynacare, a trusted Canadian lab testing provider. Dynacare will arrange a convenient appointment to complete the required tests for your insurance application. These may include taking your vitals, blood and urine samples, or an EKG, but not a full medical exam like an annual check-up. Once your tests are complete, Dynacare will forward the information directly to Blue Cross Life to finalize your application.
Why no medical exam term life insurance doesn’t mean guaranteed approval
No medical exam term life insurance doesn’t mean guaranteed approval—even with a simplified term life insurance policy. It just means that you don’t have to complete a medical exam. Your health situation is just one of the factors that goes into determining term life insurance eligibility.
With guaranteed no medical exam term life insurance, coverage is also often limited to around $100,000. Meanwhile, an underwritten policy like those from Blue Cross Life can usually provide up to $2 million in coverage for individuals under 50 without a medical exam.
Many Canadians don’t require a medical exam when applying for underwritten life insurance policies. But if you need one, it helps to know that medical exams can sometimes work in your favor. An example is a medical exam that indicates a pre-existing condition is well-managed. An insurance provider may view that as less risky and make eligibility decisions based on that information.
How to prepare for the term life insurance application process
Preparing for the term life insurance application process is simple. There’s very little work you need to do ahead of time.
With Blue Cross Life, you can complete your term life insurance application online in just 20 minutes. You’ll find out right away if you’re approved. If a medical exam is requested or you have any questions, Blue Cross Life’s trusted advisors will guide you through the process.
The most important thing to keep in mind when applying for life insurance is to be 100% honest. Lying or providing misleading information is considered insurance fraud and can come with consequences that may impact you and your loved ones down the line.
You may be tempted to hide information, such as pre-existing conditions or lifestyle habits, to save on premiums or avoid a medical exam. But this can lead to cancelled policies, rejected claims when you need them most, or make you ineligible for future coverage. And if you end up needing a medical exam, any discrepancies can cause further delays or a denied application.
Choosing the right term life insurance policy for your needs
Get affordable, flexible term life insurance with Blue Cross Life. Voted Canada’s Most Respected Life Insurance Company for 3 years in a row, Blue Cross Life, provides Canadians with financial support and protection for their loved ones.
When you choose Blue Cross Life Term Life Insurance, you enjoy:
- Comprehensive coverage up to $5 million and term lengths up to 30 years.
- Rates that stay the same throughout your term.
- $10,000 in free life insurance for each of your current and future children.
- 10% savings on first-year premiums when you apply as a couple.
- 30-day money-back guarantee.
Complete your application online in just 20 minutes. Get your free, no-obligation quote today.