Who Needs Guaranteed Issue Life Insurance in Canada
Investing in a comprehensive life insurance plan could be one of the best things you do for your family. Unfortunately, as life gets busier, it is easy to overlook the need for life insurance. The thing is, no one can predict when their life will end, and the longer a consumer waits, the more difficult it becomes to get life insurance at an affordable rate. However, if a consumer is looking for life insurance and the circumstances of his or her life prevent them from getting a traditional life insurance plan, there is always the option for guaranteed issue life insurance in Canada.
What is Guaranteed Issue Life Insurance?
The best time to purchase life insurance is long before the need arises. By purchasing life insurance when you are young and healthy, you can usually get a higher amount of coverage for a much lower rate. A person who needs life insurance, but who has a questionable health history will most likely be denied coverage for traditional life insurance. Guaranteed issue life insurance in Canada may be the only option for a person in this situation.
Guaranteed issue life insurance in Canada is a type of life insurance policy that requires no medical questionnaire or doctor examination. Because no medical history is required, anyone – even those with a poor medical history – can apply, and no one will be denied. However, there are some limitations to a guaranteed issue life insurance policy.
Pros and Cons to Guaranteed Issue Life Insurance in Canada
Although guaranteed issue life insurance in Canada has less application restrictions than traditional life insurance, it also has some limitations.
Pros
- Cannot be turned down because of health history
- Coverage will never decrease
- Premiums will never increase
- Application process is easy
- Application process is easy
- Term is guaranteed for life
Cons
- Coverage amount is limited – usually between $5,000 and $20,000
- Premiums will be higher than for a traditional life insurance plan
- Coverage may have age limits
- Coverage may have waiting period – if the insured dies before the time period is up only the premium will be refunded
Since premiums will be higher for this type of insurance, consumers should shop around for the best price. Most insurance companies will offer discounts for non-smokers, as well, so it important to do some research. This can be a buyer beware market, so remember – not all insurance companies are made alike. These days, consumers can rely on the Internet to find a reputable insurance company offering good rates for guaranteed issue life insurance in Canada, but don’t be afraid to ask for referrals from family, friends and acquaintances.
Guaranteed issue life insurance in Canada is most beneficial for consumers with a life threatening illness. Consumers with a poor health history, but who do not have a potentially life threatening medical condition, may want to research traditional life insurance rates as well as guaranteed issue life insurance rates. This will help to ensure that they are getting the best rates and the most coverage to meet their needs.
We can help. To learn more, call NoMedicalLifeInsurance.ca at 905.248.4849.
I agree, guaranteed issue life insurance can be a great help to provide for final expenses if someone is uninsurable due to health or age. In the US there are highly-rated insurers like MetLife that offer guaranteed life insurance plans for people ages 45-75, and you cannot be turned down. However, these plans usually have graded death benefits the first 2-3 years you are insured under the policy.
Thanks I think one key point is to see if the unhealthy applicant can qualify for a Simplified Issue plan where there are a few questions but offer better coverage which can start from day one.