We’ve all seen the advertisements on TV, or on the radio, life insurance without a medical test and no health questions. It all seems pretty straightforward and easy, but not so fast.
No medical life insurance can be really broken down into two categories: Guaranteed Issue Life Insurance, where there are no medical tests and no health questions, and simplified issue life insurance, where they’re also no medical tests, but a short series of health questions.
Most of the plan sold directly through Insurance carriers via their call center or website are guaranteed issue plans. These plans have higher premiums and lower face amounts. Guaranteed issue plans also offer a deferred death benefit, which means if the insured passes away, in the first two policy years, the death benefit is limited to a return-of-premium, plus interest.
Bottom line, if an applicant can qualify for Simplified Issue Life Insurance and they buy a Guaranteed Issue plan instead, they could end up paying thousands more in premium for inferior coverage.
Many simplified issue plans offer an immediate death benefit and can also come with an option to pay up the policy in a limited number of years. Insurance brokers offer both Guaranteed Issue and Simplified Issue plans. They can shop the market to find the best no medical life insurance plan for your specific needs. They can also explain any potential pitfalls of caveats of these plans and, depending on the company, there may be many.
How much is for my dad he is 73 non smoker. Had bypass surgey in 08
Hi Ian, The premiums depend on the type of plan and the amount of coverage. We will send you a separate email now.
How much is it for $500,000 of Term 20 life insurance – I am using steroids but well controlled liver and blood function levels
You would likely be limited to Simplified Issue coverage – face amounts are below $500,000. We will be in touch by email.
Great article, I like the point about the benefits of using a broker. Too many companies are selling direct and in my opinion not properly explaing what the are selling
Thanks for the kind words. The article below well not totally related stresses the importance of knowing what you buy in relation to life insurance https://lsminsurance.ca/life-insurance-canada/2014/01/insurance-suicide-clause