Seniors have many
guaranteed issue options.
Photo by Ed Yourdon
Guaranteed issue life insurance provides life insurance without a medical and with no health questions.
This is different than simplified issue life insurance, which is also available without a medical, but has anywhere from three to 12 health questions. Guaranteed issue policies have higher premiums and lower face amounts than simplified issue plans and most have a waiting period on the death benefit of two years or longer.
BMO Insurance is one of the leading providers of guaranteed issue life insurance for seniors. Their plan is called Guaranteed Life Plus and is only available through BMO's call centre, not through its broker network.
The plan features the following:
- Coverage for the insured aged 40 to 75
- Coverage is available in the following five premium options: $20/month, $30/month, $45/month, $60/month and $75/month.
- Cash values accumulate in the plan from year three.
- Non-smokers and smokers pay the same rate.
- The death benefit by non-accidental death is limited, in the first two years, to a return-of-premium without interest.
Two other top providers of guaranteed issue life insurance policies are The Edge, which is Underwritten by Industrial Alliance and Bingham Group Services Corp. (BGS), which is Underwritten by Foresters Life Insurance Company. Both of these plans are available through independent brokers, as opposed to a call centre.
The Edge's guaranteed issue life insurance plan is available to applicants 18 to 85 and comes with face amounts anywhere from $5,000 to $25,000. The fact they insure applicants up to 85 is a huge plus and if the insured dies in the first two policy years, the payout is limited two a return-of-premium plus 10% interest.
Bingham Group Services Corp. also offers a guaranteed issue mortgage life and disability insurance policy that is once again underwritten by Foresters Life Insurance Company of Canada. The plan must be linked directly to the insured's mortgage and offers the applicant up to $500,000 of protection.
One big caveat with the plan is the pre-existing condition exclusion. Applicants with pre-existing conditions within 12 months from the policy issue date will not be covered for that condition for the duration of the policy contract. An insured person without a pre-existing condition can also add a disability benefit.
For more details on guaranteed issue life, please contact us at 1.866.899.4849 or visit our No Medical Life Insurance Quote Page.
Why is there a waiting period on the death benefit?
Thanks for the question. This is because of the extra potential risk. You may qualify for a Simplified Issue plan which has No Medical Tests and Three to Twelve Health Questions. These plans have lower rates and higher face amounts than Guaranteed Issue plans and can provide coverage from day one.
How much cheaper is Simlified Issue Life Insurance tha Guaranteed Issue Life Insurance
Simplified IssueLife Insurance policy are almost always less thena Guaranteed Issue plan. As a rule of thumb the questions an insured applicant can asnwer “no” to on an application. The less expensive it will be. Also the higher the face amount available and the greater the probability the plan will pay out from day one.
What are some insurance options for seniors with pre-existing conditions?
Applicants with pre-existing conditions will not necessarily be declined for coverage. In some cases, if the pre-existing condition is not severe (ie. cancer, serious heart condition, HIV/AIDS. etc.) the life insured may be eligible for a simplified issue life insurance plan.
Very nice article, totally what I was looking for.
Thanks Travis. We appreciate the kind words