Nobody knows better than me about being prepared for unexpected death. As a widow, I’ve probably overcompensated now with comprehensive life insurance and a will. But you just never know what tomorrow will bring. It all just seems a bit much to do, doesn’t it? So today we are going to talk about what appears to be an easier option: when you want to get life insurance without a medical exam.
Why do insurers want medical exams?
The insurance industry is a business. Of course they want to make money too. So when they insure your life they calculate the risks to produce your premium. The risks are external (e.g. getting hit by a bus, earthquake, fire etc) and internal (your health).
Insurers can work out external risks but your health remains an important variable. If you have bad health and you’re going to die soon from some disease, they won’t want to insure you. It doesn’t make financial sense.
If they do agree to insure you will will probably be under the conditions that it will increase your premium or decrease your cover.
Why choose “no medical exam” life insurance?
In today’s busy lifestyle, people can’t always take time off work for medical exams. They also might not like being poked with needles as a medical exam, apart from the measurements of your body, and blood pressure, also involves blood tests and urine samples.
It’s a quick way to get yourself covered but you need to be aware of the costs.
Types of no medical exam life insurance
According to Nationwide, there are three types:
- accelerated underwriting policies: They use your data with their own calculations to produce a premium. This will give you limited cover/ payout, though.
- simplified issue life insurance: You provide them with less information but you have to pay more and your cover is limited.
- guaranteed issue life insurance: Here there are no questions (apart from your age) and no medical exam. But it gives you very limited cover and it will cost more. Although this one is hugely expensive it is used by older people and those in poor health.
Advantages of traditional life insurance
If you’re willing to go through the medical exam you can get a lower rate. These days it isn’t so bad. Insurance companies try and make it as easy as possible. In my case, I applied over the phone. They then rejected me because of my blood pressure. I was referred to a broker who got me insurance with Hollard. He sent someone out to take my blood pressure at work and gave me the insurance.
Who offers no medical exam life insurance in South Africa?
I think in South Africa, it’s similar to my experience. They screen you with questions and if they think you’re healthy enough not to need a medical exam, you’re ok. But they may ask for one. Looking online I think you should try MiWay, Viva, Outsurance, Sanlam, Metropolitan Alllife and more. 1Life offers a Top Up Insurance: if you already have a policy with someone else, they will insure you.
Conclusion
Life insurance is important. I’ve written about why before. But if you want to get some, probably the most important take away from all this is to be open and honest about your health with your insurer. If you aren’t and you die of a disease you didn’t mention, your claim will be rejected.
However, if you are either healthy and you want to avoid doctors and needles OR you are old/unhealthy and you don’t mind paying, life insurance without a medical exam might be the answer for you.
Disclaimer: This post was sponsored by Responsival.
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