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What non medical life insurance means
Non medical life insurance is a group of plans that do not ask you to take a medical exam. There is no nurse visit, no blood or urine sample and no doctor’s report at the start. That is the only thing the plans have in common. Some still ask a short list of health questions. Others ask nothing about your health at all.
The label “no medical” is about how the insurer learns about you, not about how the policy pays. Once a policy is in force, it pays a death benefit under the terms of the contract. If a fact that mattered to the insurer was left out or misstated on the application, the insurer can treat the policy as void during its first two years in effect, including when the insured person dies within that time. After two years in effect during the insured person’s lifetime, it generally cannot, unless there was fraud (BC Insurance Act, ss. 51 and 52). What changes is who can get one, how much cover is available, what it costs, and what happens if a claim comes early in the policy.
If you are new to the basics, our life insurance overview explains term, whole and universal life first.
Simplified issue, guaranteed issue life insurance and fully underwritten
Insurers use three main routes. They are easier to compare side by side.
| Item | Simplified issue | Guaranteed issue life insurance | Fully underwritten |
|---|---|---|---|
| Health questions | A short questionnaire, usually done online or by phone | None | A detailed questionnaire |
| Medical exam or tests | No | No | Often yes, depending on age and amount |
| Can the insurer decline? | Yes, based on your answers | Not for health reasons | Yes |
| Coverage amounts | Usually lower than fully underwritten | Usually the lowest | Highest available |
| Price for the same cover | Often higher | Usually the highest | Usually the lowest, if you qualify |
| Waiting period before full payout | Depends on the plan | Common (the contract states it) | Not usual |
The wording varies between insurers, and the exact limits, waiting periods and ages are set in each insurer’s product guide and contract. We do not quote a single set of numbers here because they would be wrong for some plans.
The trade-offs: lower amounts, higher cost, waiting periods
Skipping the exam saves time, but the insurer takes on more unknowns. It pays for that risk in three ways.
- Lower amounts. Maximum coverage on no-medical plans is usually lower than on fully underwritten ones. A plan that suits a funeral bill may not suit a mortgage.
- Higher cost. For the same amount, a person in good health often pays more on a no-medical plan than on a plan with an exam. A person with serious health conditions may find the comparison reversed, because an underwritten plan could be declined or rated up.
- Waiting periods. Many guaranteed issue life insurance plans pay only a limited benefit, often a refund of the premiums paid, as set out in the contract, if the insured dies of natural causes in the first years. Accidental death is usually treated differently. Read this clause in the contract before you apply.
Ask for these three things in writing for any plan you look at: the maximum amount, the length of any waiting period, and what the beneficiaries receive if death happens during it.
Who no-medical plans tend to fit
People look at no-medical plans for different reasons. These are the situations we hear about most often:
- They have a health condition and have been declined, or fear being declined, for a fully underwritten plan.
- They want cover quickly, for example before a mortgage closes, and a short wait matters more than the lowest price.
- They are older and want a modest amount to pay final expenses (see life insurance for seniors).
- They are new to Canada and have no medical history here yet.
- They dislike needles or exams and are willing to pay more to avoid them.
People in good health, who need a larger amount, often find a fully underwritten term life plan costs noticeably less. It is worth comparing both before choosing.
How to apply for a no-medical plan
You can start online at your own pace, or talk it through with a licensed advisor.
Say what you need it for
A funeral, a mortgage, income for a family. The purpose helps decide the amount.
Compare plan types
Simplified issue, guaranteed issue life insurance and fully underwritten, side by side.
Read the waiting-period clause
Check what is paid if death happens early in the policy.
Apply
A licensed advisor checks the application before it goes to the insurer.
Quotes and applications through us are for Ontario and British Columbia. For education only, our guides are open to everyone in Canada. See how life insurance quotes work.
No-medical life insurance questions
What is the difference between simplified issue and guaranteed issue life insurance?
Simplified issue asks a short set of health questions and the insurer can decline the application. Guaranteed issue life insurance asks no health questions and accepts most applicants. The trade-offs usually include a higher price per dollar of coverage, lower maximum amounts and, for many guaranteed issue life insurance policies, a period in the first years when a death from illness pays only a reduced amount or a refund of premiums. Terms vary by insurer.
Is no medical life insurance more expensive?
It often is, for the same amount and the same person, because the insurer knows less about your health. The gap varies by insurer and age, so compare sample prices rather than assuming.
What is a waiting period on a life insurance policy?
It is a period at the start of the policy in which the full death benefit is not paid for death from natural causes. Often the beneficiaries receive a refund of the premiums paid, as set out in the contract. The contract states the length and the terms.
Can I get no medical life insurance if I have been declined before?
Possibly. A decline on a fully underwritten plan does not stop you from applying for a plan with fewer or no health questions, but you must answer any questions truthfully, and the amount available may be small. Once a policy is in force, it pays under the terms of the contract. If a fact that mattered to the insurer was left out or misstated on the application, the insurer can treat the policy as void during its first two years in effect, including when the insured person dies within that time. After two years in effect during the lifetime of the insured person, it generally cannot, unless there was fraud.
Does no medical life insurance have a maximum age?
Yes. Each insurer sets its own minimum and maximum age for each plan. Ask for the product guide of any plan you are considering.
Can newcomers to Canada get no medical life insurance?
Insurers set their own residency rules. Some plans may be open to people who have been in Canada a short time, because they need no Canadian medical history. Ask an advisor which insurers accept your situation.
Related pages
Life insurance overview
Term, whole and universal life, and how each works.
Life insurance for seniors
Options by age band and final expenses.
Term life insurance
Coverage for a set number of years.
Mortgage life insurance
Cover sized to the mortgage.
Life insurance quotes
What changes a price, and how to get one.
Education only, not advice. This page explains how no-medical life insurance generally works in Canada. Each plan’s terms are set by the insurer’s contract. For advice on your own situation, talk with a licensed advisor.
