What is Guaranteed Life Insurance?
Guaranteed life insurance (also called Guaranteed Issue Life Insurance) is an insurance policy that you always can get. There is no medical exam or questionnaire needed, you simply apply by filling out the appropriate paperwork.
Guaranteed life insurance in Canada is a perfect solution for anybody who is not able to qualify for other insurance types e.g. due to senior years and / or a pre-existing medical history that will not allow them to purchase a standard life insurance policy.
Even if you have been denied a policy in the past, you can apply for guaranteed issue life insurance. Find out more about this insurance below.
You can purchase this life insurance policy remotely, which is very important during COVID-19 times. Our experienced life insurance brokers will be able to find for you the best rate.
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Guaranteed Life Insurance: Expert Summary
“Guaranteed Issue Life Insurance is often referred to as Guaranteed Life Insurance. And the guaranteed part means that you are guaranteed to get that coverage. There are no medical tests and there are no health questions but, with that, there are a few things to look out for. With the Guaranteed Issue type policy, the coverage amounts generally are much more limited. For most carriers, the maximum amount is $25,000. The premiums are also much higher than No Medical plans where they do ask health questions. So, the other thing is that there is often a waiting period, so there is often a 2-year waiting period – if you pass away in the first 2 years, your death benefit is limited to a return of premium.
So, when looking at the Guaranteed Issue policy, you gonna wanna make sure that that’s the policy that you need. If you qualify for a plan where you can answer a series of health questions, it’s gonna likely result in a lower premium and a better overall plan.
And that’s where a broker can come in to make sure that you find that plan and that’s gonna be best for your particular situation cause things are often different from one company to another. One company may have a plan available if you had a heart attack or you had a stroke a few years ago and may be available with company A but not with company B. So, a broker can help you to determine which plan is gonna be best for your particular situation.”
Guaranteed Issue Life Insurance: Who is it for?
Guaranteed Issue life insurance always seems like the most no fuss insurance choice for those who hear about it for the first time.
Guaranteed life insurance with no health questions can cover all complicated cases with pre-existing health conditions such as:
- Alcohol or Drug Abuse
- Depression
- Obesity
- Insulin treated diabetes
- Cancer
- Heart Failure
- HIV
- Multiple Sclerosis
- Alzheimer’s Disease
- Other serious pre-conditions
The commercials and advertisements can be very alluring because the insured is not asked to complete any health questions and there are no medical tests. However, this convenience comes at higher guaranteed life insurance rates.
Most guaranteed issue life insurance plans have a two-year waiting period or longer on non-accidental death. It means that should a policyholder die within the first 2 years; no claims will be paid (and just the paid premiums will be returned). Moreover, the issue limits are low on these policies (i.e. typically below $25,000) and the premiums are high.
The best fit for these type policies are individuals who have very serious health issues and are unable to qualify for Simplified Issue or Traditional Life Insurance policies.
Simplified Issue life insurance policies also have no medical tests and have anywhere from 3 to 12 health questions. Life Insurance coverage on these policies are much higher: $500,000 – $750,000. Click here if you believe that Simplified Life Insurance could be a better fit for you.
Traditional life insurance policies have a full range of health questions and — depending on the insured’s age — a series of health tests, such as urine sample or blood test. However, the face amounts on these policies can be much higher, up to $3,000,000 – $5,000,000, and the premiums are lower than simplified issue plans.
More about Guaranteed Life Insurance
One third of Canadians do not have life insurance. Too often, life gets busy and complicated and life insurance needs are put on a backburner. They are not considered again until retirement age starts to approach. Unfortunately, around this same time, many people are realizing that previous health issues, combined with age, now make it very difficult or impossible to obtain life insurance.
This is exactly where Guaranteed Issue Life Insurance comes in. With pre-determined payments that do not increase and policy payouts that are designed for senior years, this type of policy is a way to ensure that your needs (e.g. funeral or burial coverage) will be met. In addition to providing insurance when standard policies fail you, not having to complete a medical exam for your Guaranteed Life Insurance policy helps to speed up your policy approval time and completed it remotely.
Guaranteed Life Insurance and COVID-19
Guaranteed Life Insurance is one of a few insurance types that can be easily purchased during the COVID-19 times since it does not require an in-person medical exam.
You are approved immediately and can complete the entire transaction remotely, without risking your health or health of your loved ones.
Guaranteed Life Insurance: Why us?
We are pleased to find for you the best guaranteed life insurance policy at very competitive rates. We work with over 20 insurance providers and thus can compare for you a wide array of offers.
We are also proud to be able to offer you this very important way to secure your family’s financial future and a worry-free method to cover your necessary expenses (e.g. final expenses). While death and taxes may seem like a grim future, knowing you are prepared will lighten your current days, allowing you to live enjoying the happiness you deserve.
