While it’s definitely difficult to think about for many, there comes a point in your life where you should think about getting life insurance. There’s no doubt about it: there is a lot of unnecessary stigma around purchasing life insurance. That’s why we’re here to ensure that there is real value in purchasing this insurance product, but more importantly, we want to reduce the stigma around it and help Canadians with realizing that they are making a great decision for their future and for their families. We’ll also be discussing the differences between no medical life insurance and simple life insurance.
By the end of this article, you’ll have gathered all of the knowledge necessary to make a well-informed decision about what policy is best for you, why to purchase it in the first place, and who to contact to help you purchase the best product for your needs and goals.
Ending The Stigma Around Purchasing Life Insurance Policies
Here are the top five myths around life insurance and why they simply just aren’t true:
Myth # 1: Life Insurance Is Just For Seniors
No, life insurance policies are definitely not just for seniors. In fact, you can actually purchase a life insurance product when you turn 18. No matter your age, there is the right life insurance policy for you but finding the right one for you will depend on what stage of life you’re at and if you have a medical condition. The older you are, the more expensive your policy will be, so it may actually be better to invest in a policy when you’re younger and have fewer health issues.
Myth #2: It’s Too Expensive
There are many different kinds of life insurance packages that will all have different prices, therefore, there is a policy that can work well within your budget. Depending on the lender, you may also have the option of paying either monthly or annually. The cost will vary depending on a few factors such as age, gender, medical conditions and if you smoke or not, but paying monthly still won’t make you break the bank. You can actually end up paying as little as $13 per month.
Myth # 3: It’s Only Needed If You Have Children
While life insurance policies can definitely help protect your children after your passing, this myth isn’t true. Life insurance is for anyone. Even if you don’t have children, there are still many benefits to purchasing a life insurance policy, particularly if you have a spouse that passes away unexpectedly or due to an illness. Your policy will help you pay for outstanding expenses due to loss of income. It can also be incredibly helpful for business owners who don’t have children to pass their legacy down to.
Myth # 4: You Can’t Qualify If You’re A Smoker
Is it true that your policy costs can increase if you’re a smoker? Yes, but that doesn’t mean you can’t qualify for life insurance in general. Even if you’re a smoker, there are still policies that you can sign up for that are affordable. This is where no medical life insurance can come into play, but we’ll get into that more later!
Myth # 5: It’s Too Difficult & Time-Consuming
Purchasing a life insurance policy doesn’t have to be difficult, especially if you work with an independent insurance broker like Maple Bay. Rather than working for one company, we have access to a variety of packages from various trusted lenders across the country. This means we can shop around for the best rate and the best coverage options for your needs. This also means that we do all the work for you!
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What Is Life Insurance?
Life insurance is an agreement between you and an insurance company that you make payments towards and in return, the insurance company will pay a tax-free lump sum to your beneficiaries after your passing. While beneficiaries are mainly a remaining spouse or children, they don’t have to be. A beneficiary can be anyone you want. They can also use the money given to them by the insurance company in any way they want i.e. mortgage payments, car payments, college, any other outstanding bills, etc.
There are two main types of life insurance: permanent life insurance and term life insurance, each of them offering its own unique features depending on where you are in life and what you’re looking to achieve in the long run.
The Different Kinds of Life Insurance
While there are two main types of life insurance plans as mentioned above, there are different varieties of plans within those main types that you can choose from. The names of the life insurance plans may seem straightforward, but we’ll go into more detail about them below so you can continue to make a well-informed decision:
Permanent Life Insurance
This type of life insurance plan is exactly how it sounds: permanent. Meaning, it provides lifelong coverage. While this is typically a more expensive plan because it lasts for the duration of your life, it can build a high, tax-free cash value that you can borrow against overtime, or just let it continue to build slowly over the years.
Below are the different varieties of permanent life insurance policies:
- Whole Life Insurance: This type of policy is one of the most popular options because of the lower premiums, the accumulation of cash value and interest, and what’s referred to as the “death benefit”. The death benefit refers to the tax-free payout to the beneficiary when you die. You can decide how you want the payout to be received, whether it’s all at once or each year.
- Universal Life Insurance: This type of permanent life insurance can cost a bit more, but that’s because it offers flexibility. You can decide whether you want to increase your death benefit to reduce your monthly payments, but you will have to prove that you have a medical condition to do so and that you’ve accumulated enough cash value in your policy. Using the accumulated cash value does have its downsides though, so it’s best to go over the pros and cons with your insurance broker.
- Variable Life Insurance: Like universal life insurance, variable life insurance plans can cost a bit more but that’s mainly because you have flexible options in terms of fixed interest, where you want to invest the cash value, and how to structure the death benefit.
- Variable-Universal Life Insurance: Just as the name suggests, this life insurance plan combines what universal and variable policies have to offer. It’s a more popular option because it allows the borrower to decide the premium amount they pay, the frequency, an investment option, and, if you’ve accumulated enough cash value, you can borrow against it.
- Indexed Universal Life Insurance: Rather than selecting various accounts to invest in like other life insurance policies, you can put your cash value into a fixed account or an equity index account. You can continue to accumulate cash overtime for retirement while still maintaining a death benefit. An index will be selected and recorded at the beginning of the month and then compared with the amount at the end of the month. If it has increased, interest will be added to the cash value. Premiums are typically lower for this type of insurance because of the risks involved that your insurance broker will go over with you.
Term Life Insurance
Rather than lasting a lifetime, a death benefit lump sum is paid out if the insured person dies within the term stated on their life insurance policy. Terms can be anywhere from 10, 15, 20 or 30 years. If the policy ends up expiring, the insurer can decide if they want to renew the policy or switch to permanent life insurance, but if the policy expires before the death of the insurer, a death benefit will not be paid. Plus, there is no cash value or investment opportunities as there is with permanent life insurance policies, there is only the death benefit. While there are policies with terms ranging from 10-30 years, there are also term life insurance policies that you can choose to renew every year.
What Is No Medical Life Insurance?
In order to be accepted for a life insurance policy, the insurance company will ask for a medical exam to ensure you’re not at risk of disease or have a history of drug or alcohol abuse. If you’ve been denied life insurance for any reason, this is where no medical life insurance can come in.
You don’t have to undergo a medical examination or worry about being denied life insurance because of a pre-existing medical condition. There are many benefits to purchasing a no medical life insurance plan, one of which being that you do not have to pay higher premiums just because you have a health condition, particularly if you work with an experienced individual life insurance broker like Maple Bay. We can guarantee that you will not end up having to pay a fortune or having to wait a long time to be accepted by an insurance company.
The Different Kinds of No Medical Life Insurance
Just as there are two main types of life insurance, there are also two main types of no medical life insurance policies: simplified issue life insurance and guaranteed issue life insurance. We’ll go over each option below, as well as the benefits and the types of people who should look into no medical life insurance in the first place.
Simplified Issue Life Insurance
While you may not have to undergo a medical exam in order to qualify for simplified life insurance, you may still have to answer a questionnaire about your condition and medical history. This type of life insurance is mainly meant for those who need it right away which is why you’ll need to answer a brief questionnaire so you can have coverage within days, not months. Depending on the insurance company, they’ll provide you with simplified life insurance as either a term or a permanent policy.
People may opt for this type of insurance because they don’t want to undergo a medical exam, they’re not sure what type of policy they’ll qualify for, or simply because they need life insurance as soon as possible and want to name their children as their beneficiaries.
Guaranteed Issue Life Insurance
Guaranteed life insurance is fairly similar to permanent life insurance, however, you won’t need to undergo a medical exam or answer any questions about your health. The coverage is simply just guaranteed, but the premiums may be a tad higher than traditional life insurance premiums and the death benefit will not be as high. It can also take a couple of years before the lump sum is paid out. Again, people may choose this life insurance policy because they don’t qualify for anything else, or maybe they’re on a smaller budget and want to be able to provide their family with at least a little bit of a death benefit payout. Like simplified life insurance, coverage can also be very quick and you won’t have to wait months or worry about not being accepted in the first place.
The Many Benefits of No Medical Life Insurance
Many Canadians are opting for no medical life insurance and for good reason: it’s hassle-free, there is plenty of flexibility depending on the plan you’re looking for, and there’s also a plan for everyone. But that’s not all.
Very Little Waiting Times
One of the best things about no medical life insurance is that you don’t need to worry about waiting months for your coverage to kick in. Typical life insurance policies can take upwards of six or more weeks to even approve you, but when you work with Maple Bay to apply for no medical life insurance, the application process can take approximately 10-15 minutes and some insurance companies may even provide coverage in 30-60 minutes. Otherwise, other insurance companies will likely provide coverage in 24-48 hours. So, if you’re in a pinch and need quick life insurance coverage for whatever reason, rest assured knowing that the approval process is very quick and easy.
Lessens The Burden On Family Members
Perhaps one of the most popular reasons people purchase no medical life insurance is because they want to lessen the burdens on their family members when they pass away. After all, they need time to grieve. If you don’t want them to have to worry about your unpaid bills, other debts, or how they’re going to pay for a funeral, the payout received from the death benefit can help cover those costs.
One of the most commonly asked questions we receive as individual insurance brokers is: what can my beneficiaries use the money for? The answer is; anything that they want to. They can use it to help with mortgage payments, car payments, college debt, to go through college, etc. It’s entirely up to your beneficiaries how they spend the money from your death benefit.
Provides Coverage For Dangerous Activities
Do you play extreme sports that put your life at risk and were denied by life insurance companies? You can still be covered with no medical life insurance, particularly if you participate in the following:
- Skydiving
- Scuba diving
- Rock climbing
- BMX racing
- Big wave surfing
- Mixed martial arts
- Hang gliding
- Etc.
It’s worth noting that if you have a life insurance policy in place and then decide to start participating in dangerous sports and you die by accident, your beneficiaries may not receive a payout. It’s best to go with a no medical life insurance plan if you know you are going to be getting into a dangerous activity.
Provides Coverage For Dangerous Occupations
Having a job that is considered dangerous will definitely increase your chances of being denied life insurance. Why? Because you could die unexpectedly before your life insurance term comes to an end. Dangerous jobs are considered as follows:
- Construction workers
- Pilots or flight engineers
- Miners
- Loggers
- Lumberjacks
- Truck drivers
- Commercial fishermen
- Power line installers/repairmen
- Steelworkers
- Farmers
- Roofers
- Arborist
- Etc.
Having a job that is considered dangerous will definitely increase your chances of being denied life insurance. Why? Because you could die unexpectedly before your life insurance term comes to an end. Dangerous jobs are considered as follows:
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Allows For Foreign Travel With Ease
Do you have to travel frequently to foreign countries because of your job? If so, then you still deserve to be covered. When applying for no medical life insurance, questions surrounding foreign travel are a lot more lenient and understanding so you can plan for future travel with ease.
The reason travel can affect your life insurance so much is because there are higher risk countries (like those that are in war times or lack sanitation) that can cause you to die unexpectedly. If you’re travelling to a low-risk country, your life insurance plan doesn’t have to be adjusted. High-risk countries include Afghanistan, Yemen, North Korea, Syria, Iraq and Iran, to name a few.
You’re Not Judged By Your Criminal History
Having a criminal record, especially if you’ve been convicted of a felony, will have life insurance companies denying you right away. But you can qualify for no medical life insurance if you have not been charged, incarcerated, on probation, or have been awaiting sentencing in the past twelve months. In fact, if you haven’t done these things in the past three years, our Maple Bay team can help you qualify for up to $500,000 coverage so all you have to do is worry about moving forwards and not being judged by your past.
You’re Not Judged By Previous Substance Abuse
Unfortunately, having previously struggled with things like alcohol or drug abuse can make insurance companies deny you a life insurance plan because you are seen as a “risk”. Again, no medical life insurance applications will not judge you based on your past. You can qualify if:
- In the past twelve months, you have not used drugs or been in a treatment facility
- In the past three years, you have not used drugs, received medical treatment or advice, or been to a treatment facility.
You’re Not Judged By Your Age
Did you know that the higher your age, the more insurance companies see you as a risk even if you don’t have a health condition or illness? If you’re a senior over 65, you still deserve to have coverage to bring you and your family peace of mind and no medical life insurance can do just that for you. If you have health issues, don’t worry. You can still have an insurance plan customized to your wants and needs. Turning 65 shouldn’t mean that you no longer qualify for reasonable life insurance plans.
Who Is No Medical Life Insurance For?
People should never feel like they do not qualify for life insurance, especially when they want to be able to provide their family members with financial assistance when they pass away. That’s why no medical life insurance exists; to help people who may otherwise be denied get the coverage they desire.
Therefore, if you’ve been diagnosed with a condition such as HIV or cancer, you can qualify no medical life insurance. If you travel to foreign countries frequently because of your occupation, you can qualify for no medical life insurance. If you have a dangerous occupation or take part in dangerous sports, you can qualify for no medical life insurance. If you are over the age of 65, you can qualify for no medical life insurance. If you have a criminal record or have a history of substance abuse, you can qualify for no medical life insurance.
Better yet, you can receive help from an individual insurance broker like Maple Bay to help you shop around for the best rates from a variety of different companies. We specialize in providing people with the best life insurance plans for their goals without judging them. We have been in the industry for many years and understand how frustrating it is to be denied life insurance because of your history or medical condition.
How Much Coverage Do You Need?
Another question we often get asked is: how much coverage do I really need? The answer varies and there really is no right or wrong answer. It will end up depending entirely on what you’re looking for. There are also no limits as to how much life insurance you can buy, but you need to take your budget into consideration.
In general, experts may end up recommending getting life insurance that is worth 7-10 times your annual salary in order to ensure your family is thoroughly protected. For example, if your annual salary is $50,000, you may want to consider coverage upwards of $500,000. Depending on your lender, a $500,000 plan can end up costing you approximately $30 per month, but it’s worth noting that you shouldn’t try to add the figures yourself. This is why you should work with a professional and individual insurance broker, which brings us to our next point.
Why Use An Individual Insurance Broker?
One of the best things about working with an insurance broker is the fact that they end up working for you, not an insurance company. Much like when you work with a mortgage broker to find the best mortgage product and rates for you, insurance brokers do the same by trying to find the right insurance rates from a variety of lenders that will work with your needs and your budget. Rather than you spending weeks trying to find the best deals from insurance lenders and comparing quotes, insurance brokers can do this quickly and efficiently for you.
Another reason you’ll enjoy working with an insurance broker is because of their flexibility in being able to answer any of your questions via email, phone call or text when you need them most. Plus, their knowledge is unmatched. You’re not an expert when it comes to knowing absolutely everything there is to know about life insurance, but they are. So, any questions that you may have that you send their way, you are guaranteed an answer. You’re also guaranteed to have everything explained to you throughout the process of shopping around and obtaining a life insurance policy (or any other kind of insurance policy you’re looking for).
Another perk of working with an insurance broker is that they can help you find any insurance product that you are searching for. Not only can they help you with just life insurance, but they can also help you find the best rates for car insurance, mortgage insurance, business insurance, and more.
Contact Maple Bay Today For All Your Life Insurance Needs
Most people end up working with the same insurance broker for many years after establishing a personal, trusting relationship. That’s exactly what our insurance brokers here at Maple Bay strive to achieve. We’re licensed insurance brokers in Ontario, Alberta and the beautiful British Columbia and specialize in helping clients with life insurance and no medical life insurance plans. We’re confident and well-versed in the industry and have made connections with various trusted lenders, therefore, you can rest assured knowing that we work hard to find you the best deals that work well within your budget. We can also get you approved quickly so you don’t have to wait months for your insurance plan to kick in. Our schedules are flexible so you can also always count on us to be there for you.
When you contact us today, we’ll put you in touch with one of our professional advisors who will ask you questions about what you’re looking for and also get to know you on a more personal level. Whether you’re looking for a life insurance plan or a no medical life insurance plan, or if you just have a lot of questions, we look forward to assisting you.
Don’t worry about never being approved for a life insurance policy again. We can help you find exactly what you’ve been looking for. Give us a call or request a free quote today!