A Synopsis of Guaranteed Life Insurance Policies in Canada

Guaranteed issue life insurance coverage is available without a medical and there are no health questions – acceptance is guaranteed. However, because of the generally high premiums, limited benefit amounts and numerous coverage restrictions, this type of coverage should generally be thought of as a “Last option life insurance plan.” Usually Guaranteed Issue plans are only available as Permanent type polcies.

Simplified issue life insurance plans have no medical tests, but generally include three to 12 health questions. Simplified Life plans have lower premiums and higher coverage levels than Guaranteed Issue plans. Simplified Issue plans can be Permanent or Term Policies.  Permanent providers include Canada Protection Plan underwritten by Foresters Life Insurance Company, Industrial Alliance, La Capitale, Wawanessa, Equitable Life and Assumption Life. 

Canada Protection Plan just increased their issue limits on both their Permanent and Term policies.  They offer a Instant Issue Term 10, 20 and Term 100 plan and a Deferred version.  The Deferred version has less health questions.  Humania Assurance also recently introduced a Term 10 and Term 20 Simplified Issue plan with coverage amounts up to $300,000.

Traditional life insurance plans have medical tests and a full range of health and lifestyle questions. Most people qualify for traditional life insurance and it is the most affordable type of life insurance.

The following is a snapshot comparison of the main guaranteed issue life insurance carriers in Canada:

1. BMO Insurance Guaranteed Life Plus - The plan is available to those age 40 to 75. Five premium bands are set at either $20.00 a month, $30.00 a month, $45.00 a month, $60.00 a month, or $75.00 a month. Five times the death benefit is paid out if the insured dies by accident prior to age 85. The regular death benefit is limited to a return of premium with no interest in the first two years.

2. Manulife CoverMe Available to applicants age 40 to 75. Coverage available $5,000.00 to $20,000.00 Five times the death benefit, if the insured dies by an accident prior to 85. If the insured dies by accident in the first two policy years, the return of premium plus 10% interest.

3. CARP Guaranteed Issue Life Insurance
The plan is available to applicants age 50 to 80 and includes benefit face amounts of $2,500 to $25,000. If the insured dies by accident in the first two policy years, the insured receives a return of premium plus 10% interest. The policy is paid up at age 100.

4. The Edge Guaranteed Issue Plan. The plan is available to applicants age 50 to 85. It also includes $2,500.00 to $25,000.00 of coverage. In addition, the plan offers a return of premium plus 10% interest if the insured dies in the first two years. The Edge is underwritten by Industrial Alliance and rates vary from province to province. Premiums can adjust on a class wide basis. You can add a critical illness benefit to the plan or an accidental death and dismemberment feature of up to $500,000.00 of coverage.

Below is a pricing comparison of the four plans for a 60-year-old female non-smoker:

  • BMO Guaranteed Life Plus – $10,150 of coverage is $60.00 a month (BMO Insurance’s rates recently changed for non smokers)

  • Manulife Cover Me – $10,000.00 is $38.50 a month.

  • CARP Guaranteed Life Insurance – $10,000 is $38.76 a month.

  • The Edge – $10,000.00 is $65.23 a month.

You can get more details by visiting our website or by visiting our non-medical life insurance quote page Non-medical Life Insurance Quote or contacting us at 1-866-899-4849.

Most recent articles

Your email address will not be published. Required fields are marked *

  • EComm
    August 30, 2013 at 8:45 am

    How much moore is Guaranteed Issue on average than Simplified Issue Life Insurance?

    • LSM Insurance
      August 30, 2013 at 12:28 pm

      Could be anywhere from 20% 100% higher for a Guaranteed Issue plan. It depends on how many questions the Simplified Issue plan asks. The more questions generally the lower the premium in relation to a Guaranteed Issue plan.

  • Austin
    July 2, 2013 at 11:04 pm

    Is BMO Guaranteed Plus available through my broker, I would rather give him the business but I think this is the only plan I qualify for

    • LSM Insurance
      July 3, 2013 at 10:32 am

      BMO’s plan is only adavailable via the website, by mail or call centre. Your broker may be able to come up with some other Guaranteed Issue or Simplified Issue solutions that offer a better value.

  • LSM Insurance
    October 30, 2012 at 2:04 pm

    Thanks for the note. Yes you can have a guaranteed issue policy with more than one carrier. You may also want to see if you qualify for a Simplified Issue policy (no medical questions and some health questions). These plans have higher face amounts and a lower premium and some offer coverage from day one.

  • jfisher
    October 30, 2012 at 12:07 pm

    Can you accumulate guaranteed issue contracts from various life insurance companies in order to get a greater total amount of coverage? ie get the max from 2 or 3 companies

  • LSM Insurance
    August 2, 2011 at 9:27 am

    Thanks for the note. Your husband may qualify for a simplified issue policy (no medical tests and 3 to 12 health questions) This will translate into lower premium, higher face amounts and some simplified issue plan offer coverage from day one. Guaranteed issue policies (no medical tests and no health questions) have higher premiums, lower face amounts and a two year waiting period on the death benefit.

  • Judy
    August 2, 2011 at 8:11 am

    My husband has what the heart specialist believes to be spasams in his arteries which they feel is different from heart attacks. He is 56 and has 3 short hospital stays over the past 12 years from this. We have accident insurance because he used to work on the highways. He now has his own business locally and I think we should have life insurance. Can we still get a policy and what would you suggest. Thanks Judy