Non-Medical Life Insurance: Should I Buy Direct or Through a Broker?

Non-medical Life Insurance can be divided into two categories.

1) Guaranteed Issue coverage where there are no health questions and no medical tests and

2) Simplified Issue coverage where there are generally three to twelve health questions and no medical tests.

Most Non-medical life insurance plans sold directly through insurance carriers like Manulife and BMO are guaranteed issue plans.

On the plus side, your acceptance is guaranteed, but the downsides are, the face amounts are generally much lower, the premiums are higher and the coverage usually is sold on a deferred basis. This means that if the insured passes away from a non-accidental death in the first two years, the death benefit is limited to a return of premium. In some instances though, it’s a return of premium without interest.

Simplified issue policies sold through independent brokers have the following benefits:

1. There are no medical tests.

2. Coverage can start from day one.

3. There are higher face amounts.

4. The premiums are much lower than guaranteed issue policies

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

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  • Fran
    August 28, 2013 at 11:51 am

    Brokers almost always provide a better value for life insurance, assuming you are dealing wone who understands the different Simplified Issue and Guaranteed Issue plans not a lot of brokers do.

    • LSM Insurance
      August 28, 2013 at 2:36 pm

      Thanks for sharing Fran. I agree a lot of people with health issues are applying for Guaranteed Issue when they qualify for Simplify Issue or Traditional Life Insurance which will give them a better value.

  • LSM Insurance
    April 27, 2013 at 5:52 pm

    Thanks for the note. Assumption Life offers a Simplified Issue Plan to Insulin Diabetic who have not experienced insulin coma or insulin shock. If the insured can answer “no” to the other ten questions coverage can start from day one.

    We will send you a separate email now.

  • Lisa F
    April 27, 2013 at 1:59 pm

    I’m an insulin diabetic age 65 what options are available to me. I would like a plan available without a waiting period. Can you also let me know the approximate price.

  • LSM Insurance
    April 16, 2013 at 8:21 am

    Thanks for the note Holly. The BMO Guaranteed Life Plus plan is only sold direct by BMO. It is not available from its broker network. If your client had a stroke in 2008 and no other major health issue issues they may qualify for a Simplified Life policy with an immediate payout with Assumption Life, Canada Protection Plan or Industrial Alliance.

  • Holly P
    April 16, 2013 at 12:53 am

    My client had a stroke in 20008. How can I sell her the BMO Guaranteed Life Plan.