20th Sep 2018
Life Insurance hub
What is No Medical Life Insurance?
No medical life insurance is a whole of life insurance plan that guarantees your application will be accepted with no medical or lifestyle questions asked. Also known as ‘Over 50 life insurance’ or ‘Guaranteed life insurance’, this no medical option provides life cover regardless of the state of your health.
There are a wide range of companies who offer this type of 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.
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. There is usually a minimum age threshold of 50, which explains why they have been branded ‘Guaranteed Over 50 Plans’.
Because of the nature of the plan, i.e. it guarantees to pay a cash sum when you die; they are generally used for later life planning, either to:
- Leave as a gift for family
- Pay off outstanding loans or bills
- Help with funeral costs
Having said that, in the majority of cases they are used for funerals.
How does no medical life insurance differ to general life insurance plans?
The main difference with life insurance without medical questions is that the application process is far more straightforward and therefore much quicker. Basically as long as 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; simple no questions asked life insurance.
With regular life insurance you will need to answer a whole 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.
How does life insurance with no health questions work?
As mentioned, this type of over 50, no questions asked life insurance is really quick and easy to arrange. Once you have compared plans and chosen your preferred company, your application will be accepted immediately.
You simply choose a monthly premium you are happy with or the cash sum you wish to leave to your family. The cash sum paid out is fixed which means inflation will reduce its value over time, so bare this in mind when choosing your level of cover.
Your monthly premiums are either payable for life or until you are 90* so it’s important to choose a payment you are comfortable with. 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.
Is no medical life insurance better than regular life insurance?
Whether regular or non medical life insurance is better depends on your personal circumstances. At the end of the day, life insurance without medical or lifestyle questions is a given; you are guaranteed to be accepted regardless. This can be appealing to people who have health concerns or don’t want the hassle of a longer more drawn out application process.
With regular life insurance the process is much 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.
*depends on the plan provider
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