Seniors Guaranteed Issue Insurance

August 27th, 2013 · 8 Comments · Featured, Guaranteed Issue Life Insurance, Seniors Life Insurance

couple by Ian MacKenzie
Guaranteed issue insurance
is perfect for
seniors with health issues.
Photo by Ian MacKenzie

Seniors Guaranteed Issue Insurance is guaranteed issue life insurance marketed directly to seniors for the purpose of covering final expenses.

The advantage of seniors guaranteed issue insurance is that there are no restrictions or limits on who can qualify for a policy -- anyone can qualify. This type of policy is often a good fit for those with medical issues and conditions that would otherwise disqualify them from traditional life insurance, or would at least allow them to qualify under a rating. A rating can see them pay up to five times more the regular premium, which everyone wants to avoid.

Plus, if you are disqualified form a traditional life insurance policy, it can be harder to qualify for another traditional policy or a simplified issue policy. A simplified issue policy has no medical test, but they all have health questions and one many of those plan include a health question asking if you've been disqualified from a life insurance in the last two years.

With guaranteed issue, there are no medical tests and no health questions and everyone who applies is guaranteed to qualify. However, it should be the life insurance of last resort since the coverage amounts available are relatively small compared to what is available among traditional life insurance policies, or even simplified issue policies. Also, because of the risk the insurance company is taking on by insuring anyone who purchases their guaranteed issue policy, the premiums are more expensive than those for traditional life insurance policies.

So there is a price to pay for buying a guaranteed issue policy, but regardless, it's better to have some coverage than no coverage at all. In fact, most quality insurance brokers would suggest going for a simplified issue or guaranteed issue policy and then trying for a traditional life insurance policy. This way, if you are denied from a traditional life insurance policy, at least you have a back-up simplified issue or guaranteed issue policy and you still will have coverage from that no matter what happens.

On the other hand, if you do get accepted for traditional life insurance, you can use the simplified issue or guaranteed issue policy as a supplementary policy that tops up the coverage of the traditional life insurance policy. Guaranteed issue policies don't offer the flexibility that traditional life insurance can, you get them as they come with no alterations or modifications. 

Traditional policies can come with riders, such as critical illness riders, which give you a lump sum if your diagnosed with a critical illness or some riders include a life insurance policy for children. With guaranteed issue policies, you are more limited and restricted. However, those with health issues don't have as many options as those who are in good health, so it's better to have some coverage than no coverage at all.

However, if you think you can qualify a traditional life insurance policy, do so because the ease with which you can qualify for a guaranteed issue policy hides not a lot of coverage for a high price and such a thing doesn't always fit into every financial situation or budget. 

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8 Comments so far ↓

  • JT

    Do Guaranteed Issue policies still cover someone who had cancer also do I det any type of discount for quitting smoking?

    • No Medical Life Insurance

      Yes, you will qualify for Guaranteed Issue if you have Cancer. Depending how long ago you had the Cancer you may even qualify for a Simplified Issue policy. Some Guaranteed Issue and almost all Simplified Issue plans offer a lower premium to Non Smokers.

  • RTD

    How much more expensive is it to get a life insurance policy like the one of TV no questions asked. Im in decent health but dont want all the hassle

    • No Medical Life Insurance

      You are better going with a Simplified Issue policy if you qualify the cost is lower and many plans offer coverage from day one. Once you have a plan in place you could than try for a traditional life insurance policy.

  • Margaret

    Does BMO Insurance Guaranteed Life Plus have an immediate death benefit, I have got several advertsiements in my mail box and want to clarify what they are offering? TY

    • No Medical Life Insurance

      You can contact BMO directly for further clarification. But this plan has a 2 year deferred death benefit for non accidental deaths.

  • Rose

    What is the cost for a 66 year old male who has insulin diabetes. Recently declined by ….

    • No Medical Life Insurance

      Hi Rose,
      Many Simplified Issue plans do not have a diabetes related question. I will be in touch by email shortly.

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