Life Insurance With No Medical Exam

These days it is impossible to watch daytime television without being bombarded with advertisements for life insurance.

Many of these companies are promoting life insurance that can be obtained without the need for medical exams. This may seem attractive to many Australians, but is it really a good idea?

The life insurance offered by many of these companies is different to the coverage offered by the traditional life insurance companies in Australia. Whilst the idea of not requiring a medical exam may seem great, there can be major consequences at claim time.

Life Insurance Medical Exams

It is a common misconception that all people applying for life insurance will be required to undergo a medical exam. The truth is that some Australians will not require a medical exam when applying for life insurance.

Life insurance companies only request medical exams under certain circumstances, and generally the need for a medical exam will be linked to the possible risk that you pose to the insurance company.

A medical exam will generally be required if you have any existing medical or health issues that are of concern to the insurance company, of if you are over a certain age or if you require coverage over a certain dollar amount.

Sometimes a combination of these factors will trigger the requirement for a medical exam, rather than any single factor on its own.

The type of medical exam required will differ depending on the reason for the exam. In many cases the requirement will be a simple blood test, which can be taken at your home or workplace by a mobile nurse at the insurer’s expense.

The important point here is that by applying for proper life insurance you will not necessarily be required to undertake a full medical exam.

The Dangers of No-Medical Life Insurance

The insurance companies offering no-medical life insurance via television advertisements have enjoyed a lot of success by marketing the fact that they do not undertake medical exams, and in some cases don’t even ask medical questions.

There is a catch however, and it can have a major effect on whether or not you will be able to successfully claim on your policy when your family needs it most.

A traditional life insurance policy will cover you for pre-existing medical conditions, unless there is something serious enough for the insurance company to specifically exclude the condition in writing on your policy.

With no-medical life insurance policies on the other hand, no claim will be paid for any death caused by an existing medical condition, no matter how minor or major the condition was at the time of applying.

Case Study

Let’s take a look at the made up example of Steven. Steven applied for life insurance at the age of 30, and at that time suffered from a non-life threatening medical issue.

Steven applied for a traditional life insurance policy and was required to undertake a medical exam due to the existing issue. The doctor’s report indicated that the issue was being controlled by medication, and as a result the life insurance company issued the policy.

Ten years later at age 40, Steven’s medical condition had worsened and he eventually lost his battle with the illness. Because the life insurance company had issued his policy will full knowledge of the existing condition, his policy paid out the full benefit to his family.

If Steven would have baulked at the original medical exam and instead decided to take out a no-medical exam life insurance policy, his claim would have been denied immediately because his death was due to a pre-existing medical condition.

As we can see, the difference between a proper life insurance policy and one of these television life insurance policies can be huge when it comes to claim time, and you could simply end up paying a large amount in premiums over many years for no benefit.


This article is about life insurance and is general information only. It should not however be treated as factual, as personal advice or be the basis of purchasing any insurance policy. Before deciding on an insurance policy read the PDS carefully and talk to a licensed insurance agent if you need further assistance. MoneyBuddy does not recommend insurance products or provide personal advice in regards to insurance products.

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