Assumption Life
BMO Life Assurance Company
Canada Life Insurance Company of Canada
Canada Protection Plan
CIBC Life Insurance
Costco Insurance
Cumis Life Insurance
Desjardins Financial Security Life Insurance
Empire Life Insurance Company
Equitable Life Insurance
Foresters Canada
Industrial Alliance Financial Group
La Capitale Life Insurance
RBC Insurance
Specialty Life Insurance (SLI)
SSQ Life Insurance Company
UV Insurance
Wawanesa Life Insurance Company

    Why Choose LSM Insurance For Quaranteed Life Insurance

    Term 1
    #1 Independent MGA in Canada
    Term 2
    15 offices across Canada, 220 dedicated employees
    Term 3
    $6B in managed assets
    Term 4
    56,000 applications processed per year

    What is guaranteed life insurance?

    Guaranteed Life Insurance (or also called Guaranteed Issue Life Insurance) is a type of No Medical Life Insurance that comes WITHOUT medical exams and WITHOUT medical questions that you need to answer. Everybody can qualify for this insurance type. Guaranteed Issue Life insurance premiums significantly higher than any other life insurance rates.

    Simplified Life Insurance is often seen as the most expensive type of No Medical Life Insurance. It has some limitations on maximum insurance coverage limits, and the benefits go up to $50,000.

    IMPORTANT: It is important to understand that guaranteed issue life insurance policies come with “deferred payouts” meaning that these policies will not pay a death benefit within the first one or two years.

    When do you need guaranteed life insurance?

    There are numerous reasons when it makes sense to consider Simplified Issue Life Insurance. Typically, they are following:

    • You have to get a policy as quickly as possible and have not time to take medical tests
    • You have serious pre-existing health pre-conditions and you are not sure if you would qualify for Standard Life Insurance or even Simplified Life Insurance
    • You have tried to apply for various life insurance policies before and have been declined.
    Interested in Guaranteed Issue Life Insurance or have questions?

    How does guaranteed life insurance compare to other products?

    Here is a brief comparison of how Guaranteed Issue Life Insurance compare to other insurance products:

     Standard Life InsuranceStandard Rated Life InsuranceSimplified Issue Life InsuranceGuaranteed Issue Life Insurance
    Medical exam / fluidsYesYesNoNo
    Medical QuestionnaireYesYesYesNo
    Considered No Medical?NoNoYesYes
    CoverageUp to $20,000,000Up to $20,000,000Up to $500,000Up to $50,000
    Waiting period of 2 yearsNoNoMaybeYes
    Life insurance ratesThe cheapest ratesMore expensive than Standard Life InsuranceLess expensive than Guaranteed Issue Life InsuranceThe most expensive rates

    How much does guaranteed life insurance cost?

    Below are a few examples of different 20 year life insurance rates/quotes. It is important to remember that any life insurance quote depends on multiple factors and may vary from person to person (e.g. based on your health condition).

    20 Year Term Life Insurance quote

    Male, 50 years old, non-smoker, coverage amount $25,000

    Rate: $45.50/month

    20 Year Simplified Term Life Insurance quote

    Female, 60 years old, non-smoker, coverage amount $25,000

    Rate: $90.58/month

    20 Year Guaranteed Term Life Insurance quote

    Female, 70 years old, non-smoker, coverage amount $25,000

    Rate: $111.00/month
    Interested in Guaranteed Issue Life Insurance or have questions?

    How does guaranteed whole life insurance work?

    When you buy Guaranteed Issue Life insurance (e.g. if you have serious health pre-conditions), you do not need to worry about any medical exams or medical questions. Your guaranteed issue life insurance rates will be higher than for any other life insurance types due to a higher risk. It is important to know that if you pass away during the first two years, your life insurance policy will not pay a death benefit.

    Who sells guaranteed life insurance?

    Meanwhile, most life insurance companies in Canada offer Guaranteed Life Insurance policies including the largest insurers such as Manulife, Canada Life, Sun Life and many others and many smaller ones such as RBC Insurance, Canada Protection Plan, Empire Life, Assumption Life and many others

    Interested in Guaranteed Issue Life Insurance or have questions?

    Pros of Guaranteed Life Insurance

    • Pre-conditions / Health issues: A great fit if you are already ill with a recently diagnosed serious medical condition, for example cancer and unable to qualify for other types of life insurance.
    • Simplicity: There are no medical tests and no health questions

    Cons of Guaranteed Life Insurance

    • Price: If you can qualify for other forms of life insurance, Guaranteed Issue Life Insurance is always more expensive.
    • Coverage amount: These policies offer relatively small coverage amounts.
    • Death benefits: Guaranteed life insurance policies have a limited death benefit. It means that 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.

    The following are some additional guaranteed life insurance features

    1. Guaranteed issue policies can be purchased directly from insurance companies or via independent brokers who can compare for you multiple rates.
    2. The insured choose their own beneficiary. Beneficiaries must have an insurable interest, such as a spouse, child, relative, or business partner.
    3. Death benefits are paid out on a tax-free basis.
    4. Guaranteed issue policies are usually only available as permanent policies and have level premiums for life. This means that the premiums never increase, and the coverage stays with the insured for life.
    5. Face amounts on most guaranteed issued policies are limited to a maximum of $50,000.
    6. As mentioned earlier, most guaranteed issue plans have a two-year waiting period on non-accidental deaths.

    Guaranteed Issue Life Insurance: Understanding the Two-Year Wait Period

    As mentioned earlier, guaranteed issue life insurance policies are available without a medical and with no health questions. One big caveat with guaranteed issue life insurance is that if the insured passes away in the first two years by a non-accidental death, the death benefit is usually limited to a return of premium. Some companies do offer interest on the return of premium, while others don’t.

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