CIBC Guaranteed Issue Life Insurance Plan – How Does it Stack Up?

Being in the market for life insurance can be a very daunting prospect, particularly for someone who has been denied coverage in the past. There are many reasons that a life insurance company can deny a claim; age, illness, or significant familial or medical history can be some of the more common reasons for rejection, but applicants can also be denied coverage because of their occupation or their choice of hobbies. In recent years, insurance companies have come to realize that their underwriting standards are built to exclude thousands of people from finding the right life insurance product. Several life insurance companies have used this knowledge to create new products, like guaranteed issue life insurance products, to help fill these gaps in the marketplace.

Enter CIBC Life Insurance

Guaranteed issue life insurance has changed the face of the life insurance by allowing higher-risk groups the advantage of qualifying for life insurance without having to answer ANY medical or lifestyle questions. The market for this type of life insurance policy is becoming more competitive everyday. Companies like CIBC, one of Canada’s Big 6 banks, has now expanded its life insurance portfolio to include the guaranteed issue life insurance market. This is great news for applicants. More product options offered by established companies will help to provide more competitive prices with a variety of different benefit levels

So How Does CIBC Compare?

CIBC’s Guaranteed Acceptance plan seemed to lack the same benefits offered by two of its major competitor’s most popular simplified life insurance plans. However, it is important to mention that simplified issue life insurance differs from a guaranteed issue plan in one very important way. Although there is no medical exam required for a simplified issue plan, applicants are still required to answer between three and 20 question regarding their health and lifestyle. By asking these questions, insurance companies have the opportunity to assess each applicant, tailor the policy, alter the premium or even deny the coverage based on the applicant’s answers. A guaranteed issue plan, such as the one offered by CIBC, has no medical exam and no medical or lifestyle questions – coverage cannot be denied.

Here’s how they compare:

CIBC Insurance – Guaranteed Acceptance Plan

• Applicants must be between the ages of 40 and 74.
• Premiums remain level. At age 95 the premium cease but the coverage remains.
• Coverage options range from $10,000, $15,000, $20,000 or $25,000 only.
• Coverage remains level for life of policy.
• No option to increase coverage amount of existing policy.
• Coverage starts immediately.
• No medical exam, tests or questions of any kind.
• $25,000 Cost for male, non-smoker, age 60: $143.75 per month
• $25,000 Cost for female, non-smoker, age 60: $110.50 per month

Assumption Life – Golden Protection or Golden Protection Plus

• Applicants must be between the ages of 40 and 85. (40 and 80 for the Plus plan.)
• Premiums remain level for life of policy.
• Coverage options range from $1,000 and $50,000. ($1,000 and $30,000 for Plus plan.)
• Coverage remains level for life of policy.
• The Plus plan offers 3% increase in coverage each year with no increase premium.
• Coverage starts immediately.
• No medical tests, but there are 10 health questions that must be answered.
• $25,000 Cost for male, non-smoker, age 60: $102.22 per month.
• $25,000 Cost for female, non-smoker, age 60: $82.49 per month.

Canada Protection Plan – Simplified Life Plus

• Applicants must be between the ages of 25 and 80.
• Premiums remain level for life of policy.
• Coverage options range from $1,000 to $100,000.
• Coverage remains level for life of policy.
• Coverage starts immediately.
• No medical test, but there are some challenging health questions.
• $25,000 Cost for male, non-smoker, age 60: $100.19 per month.
• $25,000 Cost for female, non-smoker, age 60: $81.16 per month.

To learn more,contact us at nomedicallifeinsurance.ca or call 1-866-899-4849 to talk  with one of our life insurance professionals.

NoMedicalLifeInsurance.ca is an initiative of independent insurance expert Tamara Humphries and LSM Insurance.