Non-medical life insurance is a type of policy that does not require the insured to get a health exam in order to qualify. Typically, when seeking life insurance, the insurance company requests some type of health check to ensure that you are in good health. On their end, this reduces the risk of making a payout in the near future, while also reducing the amount of paperwork and investigative work required to issue a normal policy.
Non-medical life insurance almost always costs more than a policy that requires a health check. The reason is that the insurance company is assuming a greater risk by insuring someone with an undetermined health record. The person seeking life insurance could have an unknown disease, like diabetes or cancer, that would dramatically increase their risk of death and thereby increase the risk of the insurance company having to pay on the policy in the near future.
Depending on the age of the individual seeking insurance, coverages may be twice the cost of a typical life insurance policy. Usually, non-medical life insurance is only available as term life insurance, so the increased premiums may be temporary. Some policies allow the insured to get a medical exam to lower costs down the road, thereby converting the policy to a standard life insurance plan.
Non-medical life insurance usually has a number of exclusions to benefits. For example, pre-existing conditions are almost never covered. An individual who knows they have stage four cancer cannot sign up for non-medical life insurance, then die from cancer and have their beneficiaries collect on the policy.
There may be other exclusions too, including suicide. If a claim is ever put on the policy, the insurance company will likely take longer to make a disbursement while they work to determine whether or not there has been fraud. With a non-medical life insurance policy, the investigative work happens at the time a claim is made rather than at the time the policy is taken out, so receiving benefits can take some time.
Just because the policy doesn’t require a health check by a professional doesn’t mean the insurance company won’t want any reassurance of the insured’s medical condition. They may ask for a screening form to be filled out before the policy is taken out. The questions on the screening form may include asking whether or not the policyholder is a smoker, how old they are, how much they weigh and other basic questions. It’s important to answer honestly to avoid policy cancellation.
A non-medical life insurance policy is a good choice for someone who doesn’t have time or insurance coverage to allow them to go to a doctor for a regular physical. The policies can usually be purchased quickly, providing immediate coverage. If you are planning to keep the policy for a long time, it’s a good idea to ask about ways to convert it to a standard life insurance policy.