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No-Medical Income Protection Insurance

Take out income protection cover quickly, easily and with no need to undergo medical tests*

If you’re looking to take out income protection insurance as quickly as possible and with a minimum of fuss, no-medical income protection insurance could be perfect for you. Also known as direct income protection insurance, this type of cover is purchased straight from an insurance brand instead of going through an adviser or broker.

This makes it fast to protect yourself and your loved ones financially in the event of illness or injury, replacing your income until you get back on your feet.

Compare Direct Income Protection Insurance

Details Features
Income Protection
Income Protection
Cover up to 85% of your income up to $10,000 per month if you can't work due to sickness or injury. Cover for over 1,000 jobs and full-time, part-time and self-employed.
  • Monthly benefit up to $10,000
  • Cover for applicants up to age 60
  • 30 day cooling-off period
Go to site More info
Income Protection
Income Protection
Receive up to 75% of your income each month to a maximum of $25,000 if you can't work due to serious illness or injury.
  • Monthly benefit up to $25,000
  • Available for applicants up to 59 years old
  • 30 day cooling off period
Go to site More info

*Direct income protection policies may require some very basic medical details

Who should consider a no-medical income protection policy?

If you rely on your ability to work in order to provide for your family, income protection insurance can offer crucial cover. No-medical income protection insurance is worth considering if you:

  • Are generally in good health
  • Have no pre-existing medical conditions
  • Are looking for a quick and stress-free way to take out cover

With minimal medical underwriting involved, no-medical income protection insurance allows you to take out cover within minutes. There is no requirement for you to undergo blood or medical tests or to endure the time-consuming process of comparing and choosing a wide range of policies.

What are the pros and cons of a no-medical policy?

Pros

  • Fast application process. It’s possible to apply for and take out no-medical income protection insurance in a matter of minutes. This makes it easy and hassle-free to purchase cover whenever you want.
  • No medical tests*. As the name implies, you won’t have to undergo any major medical tests before being accepted for cover.
  • Easy to understand. Direct income protection policies are not as complex as policies purchased through an adviser, which makes it easier for the average person to understand the type and level of cover being purchased.
  • Bundle your cover. Many direct insurers allow you to bundle income protection cover with other policies, for example life or total and permanent disability (TPD) cover, so you can save money on premiums.
  • Essential cover. If your income is crucial to your wellbeing and the wellbeing of your family, income protection insurance offers important financial protection.

Cons

  • Basic cover. No-medical income protection policies tend to provide only a basic level of cover and do not feature the same “bells and whistles” as policies purchased through an adviser. As a result, underinsurance is a prominent risk.
  • Exclusions. No-medical income protection policies tend to have a much larger list of exclusions than policies purchased with advice. If you’re not aware of those exclusions when you take out cover, your claim could end up being refused.
  • Not tailored. Direct income protection insurance can’t be tailored to suit your unique cover needs.
  • More expensive. Direct life insurance products tend to be more expensive than cover purchased through an adviser.
  • No advice. With a no-medical policy, the onus is on you to determine the type and level of cover that’s right for you. If you don’t understand the benefits, features and exclusions of income protection insurance, not to mention how much cover is sufficient for you, then you may be better off seeking help from an insurance adviser.
  • No assistance at claims time. When you purchase cover from an insurance adviser, the adviser can offer advice and assistance if you need to make a claim. However, if you purchase a no-medical policy, it’s up to you to navigate the insurer’s claims process and fulfil all necessary requirements.
  • Hard to find cover for some people. If you have a pre-existing medical condition or a health history that’s less than perfect, direct life insurers may refuse to cover you. Alternatively, your pre-existing condition may be excluded from cover or you may have to pay a premium loading.

How does the application usually work?

There are three main ways you can purchase no-medical income protection insurance:

  • Online
  • Over the phone
  • From an insurer’s retail store

While there are no medical tests involved in the application process, you will still be required to answer some simple questions about your health and your medical history.

You’ll also need to provide details such as:

  • Your age and gender
  • Your occupation and income details
  • The waiting period and benefit period you select for your policy
  • Details of your hobbies and pursuits

What type of medical details will I need to provide?

Although you are not required to undergo a medical test when applying for cover, you’ll need to complete a simple health questionnaire during the application process. While the questions asked may vary between no-medical income protection insurance providers, some common details you will need to provide include:

  • Information about any pre-existing medical conditions
  • Your smoking status
  • Your family medical history
  • Any medications you take
  • Your usual doctor

No-medical income protection insurance offers a number of advantages, the most important of which is the ease and speed with which you can take out cover. However, it does have some significant drawbacks compared to policies with full medical underwriting, so make sure you carefully consider your options before deciding which type of income protection insurance is right for you.

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Picture: Shutterstock

Maurice Thach

An insurance researcher and writer for finder.com.au who loves finding an answer to the question "Am I covered for ________?" Maurice has also completed a Tier 1 Life Insurance and a Tier 2 General Insurance Certification under ASIC's Regulatory Guide 146. This means he can confidently provide general advice for life insurance and non-life insurance products.

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