Life insurance without medical questions
13 Nov 2020
When you take out a life insurance policy, you will usually be asked about your health. A provider might ask for details about your weight, height, whether you smoke or drink, and whether you have any pre-existing medical conditions.
And no - they are not just being nosey! These questions are really important so that a provider can assess your application in more detail and give you the most accurate premium to pay, based on your individual health and lifestyle.
However, not everyone is happy or comfortable to go through these medical questions - particularly older applicants. These are the people we are going to primarily focus on within this article, but we’ll touch on life insurance without medical questions for young people too.
It’s far from uncommon for older people to have a slightly more complicated medical history. You may be worried that divulging this information will majorly increase your premiums or lead the provider to reject the application. If this is the case, there is an alternative route that they can go down, and that is something called ‘over 50s life cover’.
What is over 50s life cover?
Over 50s life cover is, as the name suggests, designed for older people. It’s also really useful if you suffer from any medical conditions. This is because you will not be asked any health or medical questions when taking out the cover, and you are guaranteed to be accepted. You may also hear these products referred to as ‘guaranteed acceptance’ life insurance.
Getting standard life insurance and related products such as critical illness cover with health conditions can be really tricky, and over 50s life cover provides an option for those who want cover, but don’t want to battle to find a suitable policy.
Is life insurance without medical questions expensive?
As with any life insurance product, the price of your monthly premiums with over 50s life cover will depend on your own personal circumstances. That being said, as your health and your medical history are not taken into account, there are not quite so many factors to account for that will affect what you pay. Your premium prices will depend on the amount of cover that you choose, and your age. The older you are, and the higher your amount of cover, the more expensive your premiums will be.
Premium prices for over 50s life cover and guaranteed acceptance life insurance products are usually higher than standard life insurance and similar products. This is because your insurer will have to pay out on your policy sooner or later. Unlike many other standard life insurance products where your term will eventually come to an end, over 50s life cover does not have a time limit. As long as you continue paying your premiums, up to the age of 90, you’ll definitely end up with a payout. Once you pass 90, no further payments are collected - but you still remain covered, providing you’ve not stopped payments beforehand.
Whilst this is a definite positive, it does also mean that you may end up paying more in premiums than you receive back from a policy when you pass away. This is because you pay high premiums over potentially a long period of time, for a relatively low amount of cover.
Although expensive, over 50s life cover can be great value for money - but this does depend largely on each individual. If you’re over 50 but still in pretty good shape, it may make more sense to take out a cover that requires you to answer some health questions. If you’re not a particularly high risk to the insurer, then you might be able to secure yourself a well-priced life insurance policy instead that could work out cheaper than an over 50s policy.
Are there any restrictions?
As you may have guessed, you can only take this product out if you are over 50 years old. You can also only take up to a certain level of cover, usually between £10,000 and up to £20,000 in some instances - dependent on the insurer. Standard life insurance allows you to take out much more than that, so over 50’s life cover is restrictive in that way. However, because the payout amounts are lower, over 50s life cover is well designed for covering funeral costs, or leaving a pot of money behind for your family. It might not be as well suited for paying off higher levels of debt, such as a mortgage.
With some life insurance policies, you can opt for your payout amount to increase in line with inflation. With over 50s life cover, this isn’t applicable. You choose a fixed level of cover, so you do run the risk of your payout amount not being quite enough to fully cover your funeral costs, for example. Funeral costs have been steadily on the rise for the last 15 years, increasing by 3.4% over the last year alone. Nevertheless, your payout should be enough to provide a real helping hand financially to your family during a difficult time.
It’s also important to note that you will not be fully covered for the first few years of your policy. This is called the ‘deferral period’. Deferral periods are commonplace in life insurance, however many of them are shorter than a few years. On average, they are between four weeks and 12 months. With over 50s insurance products, your full cover amount won’t be paid out if you pass away within the first few years of your policy - usually two years. If you pass within this period, the insurer will normally return the premiums paid up to that point. That is unless you pass away as a result of an accident, in which case an insurer will typically pay out the full cover amount.
What about if I am young and looking for life insurance without medical questions?
Of course, we’ve given plenty of information and options for someone over 50 looking for life insurance without medical questions - but what about younger people?
Perhaps you have a dangerous or unhealthy lifestyle or have pre-existing medical conditions or a serious illness runs in your family. Where do you turn then? It’s worth contacting us at LifeSearch so that we can try and find you a standard life insurance quote that works for you. There are so many lenders out there with so many different stances. We know exactly where to look, and we might just find a policy that works.
There are some lenders out there who specialise in covering high-risk people who may struggle to take out cover with medical questions. Although these lenders won’t assess you based on your medical history, they don’t always offer particularly good value for money on their policies. That’s why we would always recommend using a life insurance broker, such as us here at LifeSearch, to shop around for you and explore all of your options to see which will leave you with the most cover for the best price.
So, what next? If you are in need of some help getting cover, whether you are old or young, get in touch with us. It’s what we’re here for. We believe that everyone deserves to protect the life they love, and we work tirelessly to make that happen. Contact our friendly team of experts on 0800 316 7253.