Many people think that because there is no representative at home, life or critical illness insurance without a medical exam is more economical. Think again!
Although generally simpler, you should be aware that from a certain age the insurance sums become higher, and therefore there is a higher price to pay for life insurance without a medical examination.
Who is life insurance without a medical exam?
Life insurance without a medical exam is intended primarily for people who have difficulty obtaining life insurance, often for health reasons.
It is important to know that in regular products, for younger people and moderate insured capital, some insurers will not ask you to pass medical examinations, but rather to answer a health questionnaire which will be validated at the Bureau of Health. medical information, or by your attending physician.
Do insurers always ask for medical examinations?
No, in recent years, risk selection standards have changed and generally become more flexible. Given the cost of medical examinations, insurers have turned to new ways of verifying the insurability of their customers. They may request reports about your condition from the Medical Information Office, your local emergency clinic, a hospital, or any doctor you name on the insurance application.
If a medical examination is requested, how does this work?
First, rest assured. The fact that your insurer asks you for medical examinations is not bad news in itself. Tell yourself that he wouldn’t spend the money if he thought he was going to have to refuse your request.
All examinations requested by insurers are free of charge and most of the time you do not have to travel. Everything is done by health professionals, either nurses or accredited doctors. Whether it is for an additional questionnaire, a blood test, a urine test, or an electrocardiogram, everything can be done at your office or at home.
It is possible to send all the results to the doctor of your choice, you just have to mention it. This is particularly interesting because as a precaution, we should all have regular medical examinations.[divider] [/divider]
Ask for an opinion on your insurability before undergoing medical examinations
Have you had or have health problems and are you wondering if you are eligible for a life insurance policy? Have you been refused or overwritten in the past? You can ask one of our advisors to help you obtain what is called an “insurability opinion”.
Our financial security advisors know the rules and selection criteria of several companies. We can contact them directly and explain your particular situation to them in order to assess the possibility of insurance. We can help you get an answer before you start any process.
Are there any benefits of having medical exams when taking out life insurance?
The main advantage is that of having access to more economical prices. Everything is assessed on the basis of risk. Actuaries work to price risks based on the state of health and healthy lifestyles of their clients. For example, more than 40 years ago, insurance companies started giving discounts to non-smokers. They had discovered that tobacco was harmful to health and life expectancy.
Today we talk about “preferential rates” and even “super-prime”. For you to get these rates, you must, among other things, have a good family history, good lifestyle habits, and a good state of health which is often determined by medical examinations.
The savings associated with these preferred rates are not negligible. They can represent 10 to 20% savings.
Is guaranteed issue life insurance a good idea?
For some time now, we have observed the arrival of certain life insurance products that are called “guaranteed issues”. We find, for example, the 50 and over insurance offered by the National Bank, by Desjardins, or Manulife Financial.
Some people decide to purchase these types of policies without necessarily being fully aware of two important factors:
- Depending on the different contracts, and their health conditions, there may be a waiting period between the time the policy is issued and the effective date of the insurance. This period is generally 24 months.
- Depending on their state of health, they could have achieved significant savings with a contract with a medical examination.
Even if your state of health does not allow you to obtain a regular contract, there are other insurance companies that offer guaranteed acceptance products that are less restrictive as regards the basic guarantee and the waiting period for 24 months.
The term “without medical examination” does not mean “without medical questions”
Take the example of the Desjardins 50+ product. Here are some questions you will need to answer when submitting your application:
- Has it ever happened to you that an application for personal insurance (life, disability, or health) that you had submitted to an insurer, including Desjardins Financial Security, Life Assurance Company, was refused, modified, or accepted with overcharge?
- Do any of the following situations currently apply to you? You are confined to a bed or a wheelchair; you are hospitalized; you are staying in a convalescent or long-term care facility; you need help, and this on a permanent basis, to accomplish one of the following activities of daily living: feed yourself, dress, move around, wash or go to the toilet?
- Do any of the following situations apply to you:
- In the past two years, you have received treatment or consulted a healthcare professional for the following conditions: heart attack, angina pectoris, stroke (apoplexy), transient cerebral ischemia, diabetic coma, malignancy, or cancer ( excluding follow-up examinations).
- You are currently awaiting treatment or an examination result (excluding follow-up examinations) relating to one of the conditions listed above.
- You have annual follow-up exams (or have been recommended to do so) for malignancy or cancer that was treated less than five years ago.
- Do you have Alzheimer’s disease, kidney failure, pulmonary emphysema, cirrhosis of the liver, or HIV infection (AIDS virus) or have you been treated for one or the other of these diseases?
If you answered YES to any of these questions, you are not eligible for insurance.
In conclusion
If your state of health allows it, it is always better to obtain a life insurance product with a medical examination.
If your state of health does not allow it, take the time to speak to one of our advisors. They can help you find out which life insurance product is the most advantageous on the market according to your specific needs.
