What is Guaranteed Acceptance Life Insurance?

No combined smoker/non-smoker rates
on Simplified Issue policies.
Photo by John Verive

Guaranteed Acceptance Life Insurance is another name for Guaranteed Issue Life Insurance. Guaranteed Acceptance policies provide the insured life insurance protection without medical tests and without having to answer any health questions.

This differs from 'No Medical' Simplified Issue Life Insurance, in that, although there are no medical tests, the applicant must complete anywhere from three to 12 health questions.

Most Guaranteed Acceptance policies are available directly from the carrier. RBC Insurance, BMO Insurance and Manulife Financial all offer guaranteed acceptance policies via their call centre. Currently, The Edge also offers a guaranteed acceptance policy underwritten by Industrial Alliance and Everest has one underwritten by Western Life via the Independent Brokers.

One big caveat with guaranteed acceptance policies is that most plans have a two-year waiting period on the death benefit, meaning that if the insured dies in a non-accidental death in the first two years, the policy is limited to a return of the premium and, in some cases, interest as well.

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Simplified issue no-medical plans are often available with coverage from day one. They also have higher face amounts and lower monthly premiums. Unlike most Guaranteed Acceptance plans, simplified issue plans also offer discount rates to non-smokers, rather than a blended non-smoker and smoker rate.

For more information on Non-Medical Life Insurance in Canada, please contact us at 1-866-899-4849 or visit our Non-Medical Life Insurance Quote Page.