March 30th, 2012
Seniors have two lesser-known
guaranteed issue life insurance
policies to choose from.
Photo by Lin Mei
Guaranteed issue life insurance provides life insurance without a medical exam and with no health questions.
This is different than simplified issue life insurance, which is also available without a medical exam, but which has anywhere from three to 12 health questions. Guaranteed issue policies have higher premiums and lower face amounts than simplified issue plans, and most have a waiting period on the death benefit of two years or longer.
BMO Insurance is one of the leading providers of guaranteed issue life insurance for seniors. Their plan is called Guaranteed Life Plus and is only available through BMO's call centre — not through its broker network.
The plan features the following:
- Coverage for the insured aged 40 to 75
- Coverage is available in the following five premium options: $20/month, $30/month, $45/month, $60/month, and $75/month
- Cash values accumulate in the plan from year three
- Non-smokers and smokers pay the same rate
- The death benefit by non-accidental death is limited in the first two years to a return-of-premium without interest
Two other top providers of Guaranteed issue life insurance policies are The Edge, which is Underwritten by Industrial Alliance, and Bingham Group Services Corp. (BGS), which is Underwritten by Foresters Life Insurance Company. Both of these plans are available through independent brokers, as opposed to a call centre.
The Edge's guaranteed issue life insurance plan is available to applicants 18 to 85 and comes with face amounts anywhere from $5,000 to $25,000. The fact that they insure applicants up to 85 is a huge plus, and if the insured dies in the first two policy years, the payout is limited to a return-of-premium plus 10 per cent interest.
(Guaranteed Issue Life Insurance for Seniors
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