What is Simplified Life Insurance?
Simplified life insurance (also called simplified issue life insurance in Canada) is an insurance policy that you can very easily qualify for and obtain. There is no medical exam needed and there is a short medical questionnaire with 3 to 12 health questions. You can very easily qualify for this insurance policy by filling out the appropriate paperwork.
Simplified life insurance in Canada is a perfect solution for anybody who is not able to qualify for standard life insurance (also called traditional life insurance), e.g. due to pre-existing medical history.
You can purchase a simplified life insurance policy remotely, which is very important during the COVID-19 pandemic. Our experienced life insurance brokers will be able to find you the best rate.
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Simplified Issue Life Insurance: Who is it for?
Simplified issue life insurance is a good fit for people who are not comfortable with medical exams and tests in general, or those who face 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 preconditions
Simplified life insurance rates are often higher than traditional life insurance rates (approximately two times higher) but that is the price for being able to qualify for it fairly easily.
Life insurance coverage on these policies can be quite high since, recently, insurance companies increased it. It can go as high as $500,000 – $1,000,000. Click here if you believe that simplified life insurance could be a better fit for you.
Here is an overview of sample maximal coverage rates for some Canadian life insurers (as of April 3, 2020) – please note that each insurer might have their own age and other restrictions:
|
Company |
Max coverage limit |
|
Assumption Life (range depends on age) |
$250,000 – $500,000 |
|
BMO (range depends on age) |
$300,000 – $1,000,000 |
|
Canada Life (range depends on age) |
$50,000 – $1,000,000 |
|
Canada Protection Plan (range depends on age and plan type) |
$350,000 – $750,000 |
|
Desjardins |
Case-by-case |
|
Empire Life (range depends on age) |
$300,000 – $1,000,000 |
|
Equitable Life |
$1,000,000 |
|
Foresters |
$500,000 |
|
Humania |
$1,000,000 |
|
Industrial Alliance |
$1,000,000 |
|
Ivari (range depends on age) |
$250,000 – $1,000,000 |
|
Manulife |
$1,000,000 |
|
RBC Insurance (range depends on age) |
$499,999 – $1,000,000 |
|
SSQ Insurance (range depends on age) |
$99,999 – $750,000 |
|
Sun Life |
$499,999 |
Note: Please note that most $1,000,000 coverages are temporary while the COVID-19 pandemic is in place.
If you are not able to qualify for simplified life insurance, you can still qualify for guaranteed life insurance. It is important to know that most guaranteed issue life insurance plans have a two-year waiting period or longer on non-accidental death. This means that, should a policyholder die within the first two years, no claim will be paid (but the paid premiums will be returned). Moreover, the issue limits are low on these policies (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 Life Insurance Rates: Examples
Here are a few examples of implied life insurance monthly rates for a 40-year-old male, non-smoker.
|
Coverage amount |
Simplified term 100 policy |
Simplified whole life policy |
Simplified final expense insurance |
|
$50,000 |
$53.51 |
$62.01 |
$115.61 |
|
$100,000 |
$135.27 |
$116.82 |
$225.81 |
|
$250,000 |
$330.08 |
$281.25 |
N/A (max coverage is $100,000 |
More about Simplified Life Insurance
One third of Canadians do not have life insurance. Often, people start considering getting life insurance later in their lives, e.g. when they get older and have some existing health preconditions. At this time, it might be harder to qualify for traditional life insurance.
This is exactly where simplified issue life insurance comes in. It represents a combination of an easy-to-get life insurance product, decent coverage limits, and moderate insurance rates (higher than traditional life insurance rates and lower than guaranteed life insurance rates).
Simplified Life Insurance and COVID-19
Simplified life insurance is one of a few insurance types (along with guaranteed life insurance) that can be easily purchased during the COVID-19 pandemic since it does not require an in-person medical exam.
You are approved immediately and can complete the entire transaction remotely, from the comfort of your home, without risking your health or the health of your loved ones.
Simplified Issue Life Insurance: Why us?
We are pleased to find you the best simplified life insurance policy at very competitive rates. We work with over 20 insurance providers and thus can compare multiple offers available on the market. Get a free simplified issue life insurance quote or simply talk to one of our insurance experts by completing the form above. We look forward to hearing from you.