Traditional Life Insurance compared to Non-Medical Life Insurance
What is traditional life insurance in Nova Scotia?
Life insurance pays a tax-free lump sum payment to your beneficiary when you pass away. This can be used for final expenses, income replacement or leaving money for the children’s educational fund. Life insurance comes in two forms with a variety of product offerings, Term & Permanent life insurance. These policy offerings can be broken down further into traditional and non-medical life insurance policies in Nova Scotia. Traditional life insurance means you are applying through a company that has been around for a long time offering the most competitive price point for your age and product selected. An example would be applying at Manulife Financial for a Term 20 policy. In applying for this product with a carrier such as Manulife you know you will be getting one of the best prices available if you are approved. Having said that traditional life insurance also involves more up-front medical underwriting then non-medical life insurance in Nova Scotia. Traditional life insurance requires a full medical questionnaire, potential blood, urine analysis and in some situation’s doctors’ reports must be completed. The time frame for approval can range from 1-4 weeks depending on various factors.
What is non-medical life insurance in Nova Scotia?
Non-medical life insurance coverage has exploded in popularity in recent years. When you are applying for a non-medical policy, this means you must answer a questionnaire and that can range from 10-20 questions and no blood, urine or doctors’ reports are requested. Non-medical coverage can be a great fit for someone looking to avoid the traditional underwriting requirements. The convenience of non-medical policies comes at a cost, typically 50-100% more expensive than a traditional life insurance policy for the factors mentioned above. The reason behind the cost increase is the insurance carrier is completing less underwriting and asking fewer questions then a traditional life insurance carrier which is added risk, added risk typically means a higher premium charge for non-medical policies.
Two advantages and disadvantages of Traditional coverage
- You are locking in the best possible price quoted for your future
- Typically, you have more conversion and flexibility options with a traditional life insurance carrier then a non-medical life insurance carrier
- The main disadvantage is the underwriting requirements, full medical questionnaire, potential blood & urine analysis
- The uncertainty if you are going to get approved or not
Two advantages and disadvantages of non-medical coverage
- Main advantage is the avoidance of underwriting requirements such as blood or urine analysis and limited medical questionnaire
- The speed and convenience knowing you are going to be approved by the company if you can answer NO to the medical questionnaire
- The main disadvantage is the cost, typically 50% higher premiums for non-medical policies
- The lack of conversion and flexibility options
McIver Insurance Recommendation Traditional or Non-Medical
The most important factor when applying and considering life insurance is to take a good look at your current health and health history. If you have had recent health issues such as heart attack, cancer, stroke etc. traditional life insurance is not for you at this time. Non-Medical life insurance with fewer medical questions would be a much better fit. If you are healthy the recommendation is always to apply for a traditional policy because we want to get you the best price available, the non-medical option can always be a great back up offering.
Life Insurance Halifax, Nova Scotia
Are you looking for a reliable life insurance company in Halifax, Nova Scotia? Look no further than the experts at McIver Insurance. With over 30+ years of combined experience, they will help break down the key differences between the type of policy choices available to you. Don’t get overwhelmed by all the nuances of the different life insurance options, let us help you achieve your long-term goals, and set up the best protection for you and your family.