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.
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.
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.
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.
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:
If the client is not working, there is an additional question:
Yes, the premiums are guaranteed for the life of the contract.
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.
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:
Here are sample quotes for two scenarios:
Scenario 1: Male, 40-years-old, Non-smoker, coverage of $50,000 |
Scenario2: Female, 40-years-old, Non-smoker, coverage of $50,000 |
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Monthly premium: |
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All simplified products are often a good fit in particular situations. Here are a few reasons why:
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.
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.