Can You Get Income Protection Without Medical Checks?

At a glance:

• Income protection insurance can require medical underwriting, but some policies offer coverage without medical exams.
• No-medical-check policies provide quick approval but may come with higher premiums and more exclusions.
• Fully underwritten policies often offer better coverage, fewer exclusions, and lower premiums for healthy individuals.
• Those with pre-existing conditions may benefit from no-medical policies but should be aware of potential limitations.
• Choosing the right policy depends on your health, urgency, and long-term financial protection needs.

The idea of having to go through medical tests can be daunting when you’re just trying to protect your income. Many Australians searching for income protection insurance may wonder, “Do I need to go through medical tests in order to be insured?” The good news is – not necessarily. Some policies provide cover without medical underwriting, but they usually come with certain limitations.

In this article, we will explain the role of medical underwriting in income protection, your insurance options without medical checks, and their pros and cons so that you can make an informed decision.

Understanding Income Protection and Medical Underwriting

Income protection insurance is taken to assist you financially when you are unable to work temporarily due to an illness or injury. Traditional insurers assess your health through medical underwriting, which may involve health questionnaires, doctor’s reports, or medical tests. This determines coverage, premiums, and exclusions for insurers.

However, not all income protection insurance requires a medical examination. Some insurers allow limited or no medical underwriting in income protection, making the coverage more accessible to individuals with prior illnesses or anyone needing quick authorisation. However, it may come with certain implications, such as potentially narrower policy definitions or exclusions for pre-existing conditions.

Full underwriting is required if you want extensive protection with less exclusion, if you have pre-existing medical conditions which require careful consideration, or if you prefer lower premiums. Fully underwritten policies are generally more beneficial on the price front for individuals who are healthy.

“No Medical Check” Options: What They Really Mean

There are no-medical-check policies, but they are usually accompanied by certain conditions. Such policies are beneficial in some cases as they are approved faster, at times within a few days. They also avoid the inconvenience of making doctor appointments or going through invasive tests. For individuals with minor health issues, such policies offer a chance to get covered despite their health history.

However, there are also disadvantages. Non-medical policies are more expensive in premiums because insurers take on more risk. They also include more exclusions, so pre-existing conditions may be excluded. Benefit levels can be lower than that of fully underwritten policies, which may lower financial assistance at the time when it is most required.

Pros of No-Medical Income Protection

Faster Approval Process
One of the primary benefits of no-medical policies is the accelerated process through which they get approved. With no physical examinations, submission of extensive medical reports, or waiting for physician evaluations to happen, such applications are often approved in just days. Therefore, they’re well-suited to individuals in dreadful need of quick coverage or undergoing a deadline-bound changeover, like a change of employers or beginning work on a freelance basis.

No Discomfort or Stress from Medical Exams
Medical tests can be stressful, especially for those who feel anxious about needles, lab work, or clinical settings. No-medical policies eliminate this stress altogether, allowing you to apply for and obtain insurance from the comfort of your home, often online or over the phone. This also makes it easier for people living in remote areas or with limited mobility.

Greater Convenience
For many busy professionals and parents, scheduling medical appointments and navigating healthcare systems can be time-consuming. A no-medical-check policy removes that burden. The process is streamlined and straightforward, which is appealing to people who value efficiency or don’t want their insurance application to feel like a second job.

Opportunity for Individuals with Minor Health Issues
Traditional insurance underwriting can be strict, especially for those with even mild pre-existing conditions. Non-medical policies provide an opportunity for such individuals to still access coverage, although with some limitations. For instance, someone who has had mild anxiety or controlled diabetes may be accepted under a no-medical policy where they might otherwise be delayed or declined.

Appealing to Younger, Healthier Applicants
If you’re in your 20s or 30s and generally healthy, a no-medical policy can still provide decent coverage quickly without requiring you to prove your health status. While premiums might be slightly higher than fully underwritten plans, the trade-off in convenience and time savings can be worth it.

Cons of No-Medical Income Protection

Higher Premiums
One of the main disadvantages of waiving medical tests is that the insurers are assuming greater risk. Because they don’t have knowledge of your actual medical history, they cover themselves by charging higher premiums. So, you might have to pay more even if you are healthy as compared to an individual underwent full underwriting.

More Policy Exclusions
Since there are no upfront medical checkups, these policies often come with broad exclusions. They might exclude common conditions like chronic illness and mental health issues, regardless of your personal medical history. This approach helps insurers manage risk but limits you from claiming for a wide range of issues.

Lower Benefit Amounts
Insurers will typically limit how much of your earnings you can protect under a no-medical policy. That means the payment you receive in a claim period could be significantly lower than that of a fully underwritten policy. For individuals with a high cost of living or dependents, this is a significant problem when relying on income protection to stay afloat financially.

Limited Flexibility and Fewer Add-ons
No medical policies often come as one-size-fits-all. You might not get the option to add valuable features like inflation protection, longer benefit periods, or coverage for specific injuries. If you want a tailored policy that meets your unique needs, a fully underwritten approach will offer more flexibility.

Stricter Claims Assessment at the Time of Need
Though the application process may look easy and effortless, the claiming process can be more stringent in no-medical policies. Since the insurer didn’t screen your health initially, they may question more intensely when you make a claim. This could result in delays or even disputes if they find a history of undeclared conditions.

Selecting An Income Protection Policy for Your Needs

It is a matter of your personal situation whether to opt for a no-medical policy or not. If you are young and healthy with no serious illness, a quick-approval policy without medical checks may be suitable. Individuals with pre-existing conditions can also avail themselves of this option to avoid rejection, though they should be aware that some policies have waiting periods or more exclusions.

Individuals who are in between employment or freelancing may find these policies handy as they gap the coverage while transitioning to a more stable employment status. If you need coverage right away and can’t afford to wait for delays, a no-medical policy might be an option. But individuals with complex medical conditions might fare better with comprehensive, medically underwritten policies.

Income protection without medicals can be appealing, but be cautious and weigh up the advantages and disadvantages. You might want convenience and quickness with a no-med policy, but if you’re looking for long-term reassurance with comprehensive cover, taking medical tests might be the better option.

Not sure what policy suits you best? Reach out to Aspect Underwriting to explore your options and find out the most appropriate coverage that covers your requirements the best. Or you can quickly fill out this form to get a quote online.