No Medical Life Insurance for Smokers
It’s common knowledge that with traditional life insurance policies if you smoke, your insurance premiums are higher. However, does this apply with no medical life insurance for smokers?
To answer that question, we’ll take a more in-depth look into what no medical insurance is, and how the process works.
What is No Medical Life Insurance?
It’s name is self-explanatory: no medical life insurance means that there is no medical testing when issuing a life insurance policy. This is different from traditional term life insurance policies where various tests such as blood pressure and blood work are required; along with an intensive review of your medical history.
Life Insurance and Risk
Life insurance companies want to see how risky investing in your life is to them, this is why they do all the testing and have so many questions on their applications. Since they’re not performing any medical tests on you with no medical life insurance, they are taking a higher risk.
To offset this increased risk, premiums are higher. As well, they put a coverage limit on these types of policies to minimize their risk.
Types of No Medical Life Insurance
There are two types of no medical life insurance – simplified and guaranteed issue.
- Simplified: There are basic medical questions to answer, and the longer the questionnaire is, the lower the premiums are if you can answer “no” to the questions. Generally, this policy has limit of around $300,000.
- Guaranteed Issue: There is no health questionnaire, so this no medical life insurance is ideal for smokers. However, the face value of this policy is usually limited to $25,000, and there are other limitations with respect to payouts. A two-year clause means the policy may not pay out if you die within the first two years of signing the policy.
If you’re a smoker, guaranteed issue no medical life insurance may be the way to go; particularly since your premiums will never increase and your coverage won’t decrease; and your policy can never be cancelled if you pay the premiums.
Two Reasons You Should Look Into No Medical Life Insurance
There are two main reasons why you should look into no medical life insurance.
- You were declined for a traditional life insurance policy.
- You have a serious health issue(s).
However, even if the above applies to you, this doesn’t necessarily mean you can only get no medical life insurance. An experienced broker will be aware of insurance programs that insure individuals with the above issues.
At Shelter Bay Financial Corp., we are life insurance experts and are knowledgeable about insurance programs from all the Canadian life insurance companies.
To learn more about no medical life insurance for smokers, please call us at 1.888.498.5288.