What Types of Non-Medical Life Insurance Exist?

As the name suggests, non-medical life insurance assumes no medical tests when issuing a policy, as opposed to a traditional policy where medical tests (blood test, blood pressure, etc.) are required. If there are no tests, insurers see the customer as a higher risk and usually collect higher premiums for this type of policy. At the same time, there is often a coverage limit on these policies in order to minimize insurance risk.

There are basically two types of no medical life insurance:

1. Non-Medical simplified issue life insurance

This policy requires no medical exam but still has a number of health-related questions required for you to answer. Typically, the longer the health questionnaire, the lower the insurance premiums. This policy has lower coverage limits than a standard, medically underwritten life insurance policy, but still has enough coverage for you in most cases. Especially during the pandemic, insurance companies increased coverage limits of $1,000,000. If you were denied life insurance in the past two years, this policy might not be available for you.

2. Non-Medical guaranteed issue life insurance:

This policy has neither a medical exam, nor a health questionnaire to answer. It is available even if you were declined for a traditional policy during the last two years. Typically, the coverage (face value) will be limited to $25,000 – $50,000 and there are also a few limitations in terms of pay-outs, if the insured dies within the first two years.