Guaranteed Issue Health Insurance: A Snap-Shot Comparison

Guaranteed issue health insurance plans require no health questions and no medical tests in order for applicants to qualify for their coverage. However, there are a lot of guaranteed issue plans to choose from, and it can be difficult to narrow down your selection. This is why we're doing it for you. Below you'll find a breakdown of some of the most popular guaranteed issue health plans out there.

Manulife — FollowMe 

• If you apply within 60 days of your group life coverage ending, you will not have to answer any medical questions. If you apply after 60 days, you will have to complete a medical questionnaire.

• Guaranteed renewable up to age 80.

• Your coverage is guaranteed to continue up to age 80 — regardless of any changes in your health. Your coverage will not be cancelled, as long as your premiums are paid.

• Non-smokers save up to 60 per cent.

• Living Benefits is included at no additional cost.
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Toronto Life Insurance Broker: Tamara Humphries

According to the Toronto Star, Toronto's population has grown by 38,000 over the past 12 months, and Toronto ha overtaken Chicago as the fourth largest city in North America. 

More residents means more people with insurance needs, and there's no one better to serve those in need of life insurance than LSM Insurance's Tamara Humphries. Humphries is also our Non-Medical Insurance Specialist. She finished the MBA program at Toronto's York University, completing a double major in finance and marketing.

In 1998, she completed the Certified Financial Planner designation and spent 12 years training and mentoring new advisors in the industry. With her experience and vast knowledge, she'll be able to introduce you to the Guaranteed Issue or Simplified Issue policy that's right for you — especially if you may be difficult to insure.

Understanding the Differences Between Injury Only and Injury and Illness Disability Policies

According to Statistics Canada, an estimated 4.27 million Canadians aged 12 or older suffered an injury severe enough to cause permanent or temporary disability in 2009/10, which is 15% of the population. Meanwhile, 10.4% of Canada's population are disabled by illness at any given time.

Disability insurance typically comes in two major forms, ‘injury only’ and ‘injury and illness.’ The latter policy is more comprehensive and generally more expensive, as it covers both injury and illness-related disabilities. Some occupations may only qualify for injury coverage, but Neil Paton, president and CEO of The Edge Benefits, a disability insurance manufacturer specializing in small business owners and the self-employed, tells us his company may still be able to help in providing something for those who may not be eligible for a traditional injury and illness plan.

Disability Insurance: How to Find the Right Plan

Over 3.6 million Canadians have a disability (that's one in eight or roughly 13% of the population) and it only increases with age. Add to that the fact that disability costs the Canadian economy about $60 billion annually.

But with disability insurance you'll be covered if you should happen to become one of those 3.6 million. Disability insurance replaces a person's income in the event they are disabled due to an injury or illness. Some plans exclusively offer "Injury Only" benefits.

The insured's disability benefit is influenced by the insured's income: the more they earn, the higher the benefit and hence the higher the premium. The insured also chooses their elimination period, which could be zero days, 15 days, 30 days, 60 days, 90 days, or longer.

Usually the rule is: the shorter the elimination period, the higher the premium.The benefit period determines how long the insured will receive their money. This could be two years, five years, or until age 65 or 70, depending on the insurance company. Obviously, the longer the benefit period, the higher the premium.

"One of the greatest risks we all face is the ability to protect our income from an illness or injury," says Neil Paton, president of The Edge Benefits, an insurance provider specializing in disability and living benefits insurance for self-employed and small business owners.

Life Insurance Distribution Channels in Canada

Life Insurance distribution in Canada has muddied in recent years.

In the 1980s and 1990s, virtually all life insurance policies were sold through captive agents. A captive agent is someone who sells life insurance for one company. Examples of insurance companies that still use captive agents are Primerica, State Farm and The Co-operators.

Some captive agents are really quasi-captive: they can sell life insurance for their primary provider, but can also sell life insurance for outside carriers. Regardless, in most cases, they are still bound by quotas.

What Are My Options If I have Been Declined or Rated for a Critical Illness Policy?

The Edge Benefits provides a Guaranteed Issue Critical Illness plan. Guaranteed Issue means the policy requires no health questions and no medical tests.

Guaranteed issue coverage is fairly common in life insurance, but it is very rare and difficult to find a carrier providing this type of critical illness protection. The policy is available to applicants diagnosed with a major illness, such as cancer, stroke, or heart disease.

BMO Insurance’s Four Online Life Insurance Solutions

BMO Insurance offers the following four policies directly to consumers through its website.

These policies are not sold via their independent brokers, but BMO Insurance does offer a host of life insurance policies through independent brokers.

1. EasyTerm — Term Life Insurance: Available to Canadian applicants between 18 and 75, if the insured is between age 18 and 65, he or she can can get up to $249,999 in coverage without a medical examination. BMO also guarantees the renewal of the plan until age 85 — even if the insured's health changes. Regular face amounts are between $50,000 and $5,000,000, and term lengths vary from 10, 20, or 30 years. Higher face amounts have traditional underwriting requirements, including blood tests and doctors' reports.

Critical Illness Underwriting

Critical illness insurance underwriting is similar to life insurance underwriting because it takes many variables into account, such as age, smoking status, gender, medical history, height, build, alcohol consumption and family history, as well as a few other variables.

However, in the case of critical illness insurance, there is much higher emphasis put on family health and smoking history. The build requirements are also much stricter for critical illness underwriting than for life insurance underwriting.

Critical illness policies can be sold on a Guaranteed Issue, Simplified Issue, or Traditional Issue basis.

Survival Rates for Cancer Are Increasing and so is the Need for Critical Illness Insurance

The Globe and Mail reports that the death rate for cancer has fallen dramatically over the past generation.

According to new data from the Canadian Cancer Society, Cancer deaths have dropped 21 per cent in men and 9 per cent in women between 1988 and 2007. In men, that means fewer are dying when it comes to the top four cancer killers of lung, colorectal, pancreatic, and prostate cancers. For women, the story is similar, with one major difference: colorectal, breast, and pancreatic have all gone down, but lung cancer deaths have skyrocketed over the past few years. Thankfully, though, even those have stabilized when it comes to the bigger picture.

So why has the cancer death rate gone into decline? The Cancer Society attributes the falling number to fewer people smoking, improved treatments, and earlier detection. At the moment, slightly more men than women (52 per cent versus 48 per cent) die of cancer, but the gender gap is closing. In the past, more men than women smoked, but now young women are more likely to become new smokers and fewer men are smoking than ever.

Protecting You and Your Family If You Become Disabled

Bingham Group Services Corp. provides the only guaranteed issue disability insurance plan in Canada.

"We provide disability protection on a No Questions-Guaranteed-Issue-basis up to $3000 per month," says Paula Cook, a Bingham Group Services Corp. account manager and Certified Health Insurance Specialist. "This is singularly
unique in Canada."

Those considering this plan for their disability insurance needs will enjoy the luxury of never having to answer health questions or undergo medical tests. They will be approved right away, no questions asked, and enjoy the following benefits: