Can you get life insurance with no medical? Our guide explains what individual circumstances you might need in order to get life insurance without a medical. Read on to see if they apply to you.
When insurance companies assess how much to charge you for the monthly premiums and whether or not they will offer you the life insurance cover you’re looking for, they will check how much of a risk there is in doing so.
This risk is measured on your health, age, and various other factors.
Some insurers will request you take a medical before they offer you a life insurance policy, but there are some circumstances where they might give you life insurance with no medical. Read on to learn more about how to lower the cost of your life insurance premiums and if your circumstances require you to take a medical.
Do I need a medical for life insurance?
In short, you may not always need a medical in order to take out a life insurance policy. If you have no history of illness, no conditions you are currently being treated for and are generally in good health – meaning you do not smoke, you are not overweight and do not drink often – then the insurance company is likely to let you take out a life insurance policy without taking a medical.
On your life insurance application there are some questions you will be asked that could determine whether or not you are requested to take a medical. But more importantly, they help the insurer get a better idea of how much risk is involved in insuring you – and as a result allows them to calculate how much your life insurance policy’s monthly premiums will cost.
On most life insurance applications you will be asked to provide your sex, age, height and weight. These details can help determine if you are overweight or not.
You will also likely be asked about your family’s medical history, as this could impact the risk assessment on your likelihood of having a hereditary illness later in life. Finally, the insurer will usually want to know your occupation, whether or not you smoke and how much alcohol you drink each week, as well as knowing about you having had any medical conditions in the past, or any illnesses you are currently being treated for. All of these answers contribute to your risk levels and decide how much your monthly premiums will be. It’s likely that if you are a smoker, drink regularly or have had an illness in the past then you will be asked to have a medical before you can be provided with life insurance.
Even with no medical, be honest in the application
It is worth noting however that the insurance company may ask for permission to contact your doctor so they can get a clearer picture of your medical history. So if you were planning to hide any details or exaggerate your good health, then it is better to be safe and be honest in your application.
Any details that you give in the application that later prove to be false could invalidate any claim made when you die, so be sure to be as truthful as possible. If your family were expecting a payout only to be told that the life insurance policy you took out was invalid because you did not tell the complete truth on the application, then you might think paying the higher premiums is probably worth it when you consider what the alternative might be.
If you are worried about expensive costs and you are looking for cheap life insurance premiums, then there are some steps you can take to put yourself in the best position possible when applying for life insurance.
How do I lower the cost of life insurance premiums?
As early as possible before even considering applying for life insurance you should consider quitting smoking and reducing the amount of alcohol you drink each week. These are the few factors you can control that are still likely to significantly contribute to the cost of your monthly life insurance premiums.
If you are overweight then consider going on a diet, and either way, try getting some more exercise in your weekly routine. Just in case you are asked to have a medical then it’s better that the insurers see an improving lifestyle.
The factors you can’t control include your previous medical history, your family’s medical history and your age. The older you are the more likely your premiums will be higher. If you have had medical conditions in the past then it’s likely you will be asked to have a medical as the insurers will want to see how likely it is that you could get ill again.
Essentially, if you want cheaper premiums on your life insurance then it’s important to stay healthy and follow an active lifestyle while avoiding drinking excessively or smoking.
Shopping around the life insurance market using our comparison tables can also help you find a better deal. But if it’s cheap life insurance you are looking for, remember that your financial requirements are a long term investment. What might be cheaper now may not always be the best thing for your family in the long run, so be sure to weigh up the cost against yours and your family’s needs should you no longer be around to help out.
Saving on life insurance tax
Although there is no tax designed specifically to take from your life insurance payout, the payout your family receive after you die could be taxed as part of the UK’s inheritance tax rules.
When taking out a new life insurance policy you may wish to ask to have it written ‘in trust’. This essentially puts your life insurance payout as separate to any of your assets. Assets include things like property and anything else you own which could be transferred to friends and relatives as a gift.
Your assets are subject to inheritance tax, so if the value of your assets combined reach the tax threshold, tax will need to be paid on the amount over the threshold.
By keeping your life insurance payout separate from your assets, your family’s life insurance payout will not be subject to inheritance tax, meaning your beneficiaries will receive all of the payout.