20th Sep 2018
Life Insurance hub
What is no medical life insurance?
No medical life insurance is life insurance without a medical examination. The application process is quick, simple and guaranteed, which means you are covered regardless of the state of your health. This explains why non medical plans are frequently referred to as guaranteed life insurance.
There are a wide range of companies who offer life insurance without medical or lifestyle questions, so competition can be fierce. It’s therefore important to understand how plans work and what to look out for.
Guaranteed life insurance
Guaranteed life insurance has a straightforward application process with no medical or lifestyle questions. Your acceptance is guaranteed regardless of any health concerns or pre-existing medical conditions. You must be 50 plus to apply, which is why they are also known as guaranteed over 50 plans and live in the UK.
As long as you pay you continue to pay your monthly premiums, guaranteed life insurance pays out a cash lump sum when you die that your family can use however they want.
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How does life insurance with no health questions work?
Life insurance with no health questions is easy to arrange. You simply compare plans, chose your preferred guaranteed life insurance provider; complete a simple online, phone or paper application and you will be accepted immediately.
Your monthly premium is payable for life or until you are 90* and based on what you can afford and how much life cover you want. Remember the cash sum paid out is fixed which means inflation will reduce its value over time. Also, with no medical life insurance there is a chance you could pay more in monthly premiums than the cash sum paid out – it all depends on how long you live.
You are covered for the full cash sum after an initial period of one or two* years. If anything happens before this time, as a minimum the money you have paid into the plan will be fully refunded.
Why do people buy life insurance without medical questions?
Non medical life insurance is simply a whole of life insurance plan that pays out a cash sum when you die; which is why they are generally used for later life planning, either to:
- help with funeral costs
- leave as a gift for family
- pay off outstanding loans or bills
Although the money can be used however your family choose, most people use guaranteed life insurance plans to help with funerals.
How does no medical life insurance differ to general life insurance?
The main difference with life insurance without medical questions is that the application process is quicker. It’s simple, no questions asked life insurance. If you are within the age threshold which is usually 50 to 75 or 85*years old and live in the UK, you will be accepted.
With regular life insurance you need to answer a host of medical and lifestyle questions and in certain circumstances, you may even need to have a medical. Therefore the whole process takes much longer and there is a chance your application could be declined.
Is guaranteed life insurance better than regular life insurance?
Whether regular or guaranteed life insurance is better depends on your personal circumstances. Life insurance without medical or lifestyle questions guarantees acceptance, which may appeal to people who have health concerns or prefer to avoid the hassle of a longer more drawn out application process.
With regular life insurance, the application process is more time consuming and there is a chance you could be turned down. However if your application is accepted, the cash sum paid out is usually quite a bit higher.
So if you are not sure whether the state of your health would impact your application, it may be worth applying for a regular plan in the first instance, as you can always apply for the guaranteed acceptance life insurance if you are declined.
What should I do next?
Regardless of whether you are looking for regular or non medical life insurance, the most important thing to do is compare. The key features of each plan vary by provider, as does the cash sum paid out, so shopping around is a must.
Using a life insurance comparison service like the one at Over50choices gives you the chance to compare what’s on offer with leading providers and get as many quotes as you want for free. And if you are unsure about the best plan, there’s a number for you to call to speak to the experts who can guide you in the right direction.
Life insurance without medical questions isn’t right for everyone but if you want to avoid an application process that asks questions about the state of your health, it might be the right one for you.
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*depends on the plan provider