Guaranteed Issue Life Insurance
There are some very important pluses and minuses with Guaranteed Issue Life insurance.
When it’s a fit, it’s a perfect fit. If you can qualify for other forms of life insurance, Guaranteed Issue Life Insurance is always more expensive.
Here’s the kind of person who should be look at Guaranteed Whole Life Insurance – which is a no medical life insurance plan with no medical tests and no health questions.
- you are already ill with a recently diagnosed serious medical condition, for example cancer and unable to qualify for other types of life insurance.
There’s a distinction between two kinds of no medical life insurance policies, guaranteed issue and simplified issue both are available without a medical.
Simplified issue no medical policies ask between 3 to 12 health questions if you are really sick these type of plans will likely not be a fit. Some of the leading simplified issue life insurance carriers include Assumption Life, Canada Protection Plan, Industrial Alliance, Wawanessa and Equitable Life. BMO Insurance and Manulife Financial offer direct versions of these policies which bypass their broker network.
What we recommend those with health issues first look at simplified issue life insurance and if you can’t qualify look into a pure guaranteed issue life insurance policy where there are no questions asked at all.
The downside with guaranteed issue life policies are they are expensive and offer very small coverage amounts. Guaranteed issue life policies also have a limited death benefit. Meaning if the insured passes away in the first two years by a non accidental death the payout is limited to a return of premium. Some guaranteed issue life insurance policies have an interest component attached to the return of premium feature whereas others don’t.
Guaranteed issue life insurance is heavily marketed by many direct insurance providers as it is a high profit product often targeting seniors who could otherwise qualify for simplified issue life insurance or traditional life insurance policies.
Our non medical life consumer report compares guaranteed issue and simplified issue policies in available in Canada
Try our free online quote for guaranteed issue life insurance.
Photo courtesy of George Eastman House.