Life insurance provides a financial safety net for your loved ones in the event of your: 

• Death

• Diagnosis with a terminal illness with a life expectancy of 12 - 24 months of the diagnosis (dependent on your insurers terms & conditions)

• Diagnosis with a critical illness that may not be terminal (such as a heart attack or cancer)

• Severe injury, such as a spinal injury that requires a prolonged recovery time - or may even leave you permanently unable to work again in your previous field of employment, or any other.

No Medical Life Insurance Policies

In short, life insurance (including income protection & TPD) ensures that your family can manage financially, covering expenses such as funeral costs, medical bills, and day-to-day living expenses, if you’re unable to continue working for a long while - or forever.

Some life insurance policies require you to pass a medical exam before issuing you with insurance - and some don’t. For many people with prior health conditions, or close family who have been diagnosed with critical illness, a no medical life insurance policy is their preference.

What is No-Medical Life Insurance?

No-medical life insurance doesn’t require a medical examination. Instead, you provide information about your health through a questionnaire. Based on this information, insurers can quickly determine whether or not to offer you a policy. direct insurance can be purchased online, retail insurance is through the broker or financial planner

Please note that Compare Club only works with retail insurers; you may require a medical examination before cover goes in force

Understanding the life insurance underwriting process:

Your life insurance process begins with underwriting. This involves answering questions about your personal circumstances. Providing accurate and honest information is your responsibility, as any misrepresentation can lead to your policy being voided, amended, or your claim being denied or paid out at a reduced amount.

What sort of questions do No-medical life insurers ask?

When applying for no-medical life insurance, you will need to provide the following information:

• Age: Older applicants may face higher premiums due to increased health risks.

• Gender: Different health risks affect men (e.g, prostate cancer) and women (e.g. cervical cancer).

• Employment: High-risk occupations, like working as a rigger or roofer, may influence your premium.

• Pre-existing health conditions: Insurers will need to know about any current or past health issues you’ve had.

• Smoking status: Smokers generally pay higher life insurance premiums due to their increased health risks.

• Lifestyle: Insurers may ask about your hobbies, alcohol consumption, and drug use. 

You may also need to provide information on your height, weight, blood pressure, and BMI. Providing accurate information about yourself and your lifestyle is important.

Important Note: Failure to disclose relevant details regarding the above can result in a denied claim or insurance application being declined.

When is a medical exam required for life insurance?

In some cases, a medical exam may be necessary, such as if you have a pre-existing condition, a family history of serious illnesses, or if you request a high level of financial cover. Your medical exam may include tests for blood pressure, cholesterol, and other health indicators.

There are four main types of life insurance:

• Term life insurance (also known as life cover or death cover) provides your beneficiaries with a lump sum payment if you pass away or are diagnosed with a terminal illness.

• Total and Permanent Disability (TPD) cover offers a lump sum payment if you become permanently unable to work due to illness, injury, or disability.

• Income protection insurance covers up to 70% of your usual income if you are temporarily unable to work due to illness or injury.

• Trauma cover provides a lump sum payment for specific injuries and illnesses, such as cancer or heart attacks.

While having all four policies would offer the most comprehensive life insurance coverage, it may not be suitable for everyone. You can hold one type of the above cover, or a bundled policy that covers multiple scenarios. It’s even possible to get a cheaper rate by bundling multiple policies with the same insurer.

What are the pros and cons of No-Medical Exam life insurance?

Pros:

• Simplified Application: No need to visit a doctor, making your application process faster and more straightforward.

• Speedy Cover Confirmation: No need for a medical exam means your insurer can approve your cover faster.

Cons:

• Potentially Higher Costs: Insurers may charge higher premiums for no-medical exam policies.

• Limited Cover: Some insurers offer lower cover amounts without a medical exam.

How do I apply for No-Medical Exam life insurance?

Applying for life insurance is usually straightforward, but there are essential steps to follow when comparing life insurance policies to ensure you find the best one for you and your loved ones:

• Research the insurers: Start by searching online for companies that offer no-medical exam life insurance options.

• Compare policy options: Compare the policies offered by different insurers. Look closely at factors such as cover amount, premium amount, and the policy terms.

• Review their policy details: Carefully read any policy details to understand what is covered and what is not. Ensure you comprehend the insurer’s terms and conditions - or ask an expert to explain it to you.

• Get a quote: Compare quotes to find the policy that best meets your needs.

• Apply for cover: Complete and submit your application. 

Finding life insurance without a medical exam:

When comparing life insurance policies, often people consider the following questions to determine their needs:

• Do they have children or loved ones who need financial support after their passing?

• Does their family rely on their income for household expenses, or do they have other income sources?

• Would your loved ones be able to maintain their lifestyle without your income?

• Do they have any pre-existing health conditions?

Often,  insurers will assess your current health to determine if you are a suitable candidate for a policy. However, many insurers offer no-medical exam life insurance policies, which can be more convenient.

No-medical life insurance offers a convenient way to ensure some financial protection for your loved ones. By understanding the application process and considering your needs, you can find a policy that provides the necessary cover without the hassle of medical exams.

Sources

https://www.suncorp.com.au/learn-about/life-insurance/life-insurance-without-medical-exam.html

https://compareclub.com.au/life-insurance/multiple-policies/

https://moneysmart.gov.au/how-life-insurance-works

https://moneysmart.gov.au/how-life-insurance-works/life-cover

https://www.metlife.com.au/

https://fsc.org.au/policy/life-insurance

https://insurancecouncil.com.au/wp-content/uploads/resources/Submissions/2019/2019_08/2019_08_SUB%20ASIC%20CP%20317%20Unsolicited%20telephone%20sales.pdf

Matthew Lang is the general manager of life insurance at Compare Club. Matthew leads a team of dedicated professionals who are passionate about helping individuals and families make informed decisions about their life insurance needs. Whether it's finding the right coverage for your specific circumstances, comparing policies, or optimizing your existing policy, Matthew and his team are here to provide expert guidance and support.

Meet our life insurance expert, Matthew Lang

Matthew's top life insurance tips

• 1

  Identify what you want out of life insurance before you buy. Knowing the purpose of your life cover will help you choose a policy that meets your needs.

• 2

  It's easy to assume that the sole purpose of life cover is to leave money behind for your family, but there's more to it than that.

• 3

  Life insurers like those on our panel pay an average of 97% of claims in full.

• 4

  There are different types of life insurance, including term life insurance, income protection, trauma cover and total and permanent disability cover.