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

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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.

The three leading providers of guaranteed issue life insurance in Canada are BMO Insurance, Manulife Insurance and the Edge underwritten by Industrial Alliance.

Simplified Issue policies are an alternative to Guaranteed Issue life insurance. They also are available without a medical, but depending on the carrier, there can be anywhere from three to twelve health and lifestyle questions. Many Simplified Issue policies have coverage, which begins from day one, regardless of the cause of death. Simplified Issue policies also offer significantly lower premiums than Guaranteed Issue plans.

For more details, please contact us at 1-866-899-4849, or visit our Non-medical Life Insurance Quote page.

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  • Gaston
    June 10, 2013 at 8:08 am

    Can I get a quote on one of Canada Protections policies. I’m 67 male smoker, have a few health isses and don’t want to give blood, small veins

    • LSM Insurance
      June 10, 2013 at 8:47 am

      Thanks Gaston. Canada Protection Plans do not have medical tests so you be fine that way. The more questions you can answer “no” to the better the plan you qualify for. We will be in touch by email soon.

  • Amanda
    May 15, 2013 at 8:18 pm

    How come the two year waiting period covers accidental death?

    • LSM Insurance
      May 16, 2013 at 8:29 am

      The two year waiting period gives the insurance company a buffer for unhealthy applicants applying for a No Question asked plan. There is no extra risk of an applicant with health issues dying by accident.