Term 100 Life Insurance without a Medical Exam: What is This?

In today’s publication we discuss one of the newer products, Term to 100 without a medical exam. We’ll be using Humania’s Term to 100 without a medical as an example.

What is Term to 100 life insurance?

Term 100 is a permanent life insurance policy because it covers a lifetime without expiring. The premiums never increase. Unlike other permanent policies, however, Term 100 is known as “pure insurance.” There are no extras like the cash savings component you get with whole life or universal life insurance.

What is Term to 100 life insurance without a medical?

All life insurance policies are divided into those which come with a medical exam (a nurse will visit you to conduct a medical assessment) or without a medical exam (also called no medical life insurance). In the latter case, there are no medical assessments. For simplified issue no medical life insurance, there is only a set of questions to complete. For guaranteed issue no medical life insurance, there is no medical and no questionnaire. During the COVID-19 pandemic, no medical life insurance became increasingly popular due to the absence of required physical interaction.

For example, Term to 100 life insurance without a medical from Humania – the product that we use today as an example – has a set of six qualification questions if an applicant is working, and seven qualification questions if they are not working.

What are the issue ages and minimum and maximum face amounts?

Humania’s Term 100 can be sold to any adult between the ages of 18 and 70. They can apply for a maximum of $50,000. This is a level product that is considered paid up at age 100 with no cash value. Unlike whole life insurance which has a cash component constantly accumulating funds (and therefore is more expensive than a comparable Term 100 policy), Term 100 does not have any cash to take out at the end of the policy’s life. In other words, it is a purely insurance product.

Term 100 No Medical: What are the 6 qualification questions?

The Term 100 qualification questions depend on whether the client is currently working. If this client is working, they must be able to say NO to following:

• In the past 2 years (or the 2 years prior to your parental leave if applicable), were you absent from work for more than 15 consecutive days due to illness, or received disability or critical illness benefits from a private, group, or public insurance plan?

• In the past 2 years, did you receive treatment (including participation in a support group)? Were you advised to reduce your consumption or seek treatment regarding the use of alcohol or drugs?

• In the past 5 years, were you incarcerated for more than 48 hours?

• In the past 6 months, did you have any physical or mental symptoms or discomfort for which you have not yet consulted a health professional?

If the client is not working, there is an additional question:

• I confirm that I have not received any diagnosis of cognitive impairment and confirm being able to perform regular daily living activities such as bathing, dressing, toileting, maintaining continence, moving and eating by myself.

Are the Term 100 premiums fully guaranteed?

Yes, the premiums are guaranteed for the life of the contract.

Is the death benefit deferred or does it pay out immediately?

All Humania products provide immediate coverage with a 12/12 or 24/24 month pre-existing condition exclusion. This means that any health concern that has been diagnosed or treated in the past 12 or 24 months prior to the application that is directly related to a claimable event, will not be covered for the first 12 or 24 months of the contract. In this case, the beneficiaries would receive the premiums back if the person insured dies. After the exclusion period(s), all conditions are covered.

How much does Term to 100 cost? 

The cost of the Term to 100 without a medical depends on the risk level associated with the client, and this product has three of them:

• Gold: for people with lifestyle issues or poor family health history but are otherwise healthy
• Silver: for people on medication or another form of treatment for a condition
• Bronze: applies to those who have had a major health event or have been treated for a major health event in the past 5 years

Here are sample quotes for two scenarios:

When should you consider Term to 100 without a medical?

All simplified products are often a good fit in particular situations. Here are a few reasons why:

• No BMI (body-mass-index) / height and weight questions
• Marijuana users, regardless of the amount or frequency, are considered non-smokers
• Easy on those who have tried hard drugs
• No questions about DUI’s, high risk hobbies, or occupations

Our life insurance brokers have extensive experience serving their clients both in person and remotely. Interested in a quote or simply have a question? Our brokers can help both with Humania products and with a wide range of other products. Simply visit our life insurance page and let us know how we can help you. We look forward to hearing from you. Please stay healthy and safe.

About Author:

James O’Connell has been in the financial industry for over 10 years. During that time, he has been a broker, and has worked for a chartered bank as well as a top tier insurance company and an MGA before starting with Humania. He has experience building financial plans, consulting on group benefits, issuing debt products, and building pension portfolios. He has a Bachelor of Commerce from McMaster University and post-graduate certificate in negotiation and alternative dispute resolution from York University. He also has his Chartered Investment Manager (CIM) designation and is working towards his CFP. He is passionate about providing quality advice and solutions to all Canadians in order to preserve quality of life no matter their circumstance.