Guaranteed Issue Life Insurance: Who Should Buy It?

Posted on February 6, 2012 and updated February 13, 2012 in Insurance Types, Life Insurance Canada News, Non-medical 2 min read

Guaranteed Issue life insurance seems like an excellent choice at first glance.

The ads can be very alluring because the insured is not asked to complete any health questions and there are no medical tests. However, this convenience comes at a significant cost. Most guaranteed issue life insurance plans have a two-year waiting period or longer on non-accidental death. Moreover, the issue limits are very low on these policies and the premiums are quite high.

The best fit for these type of policies are individuals who have very serious health issues and are unable to qualify for Simplified Issue or traditional life insurance policies. Simplified Issue life insurance policies also have no medical tests and have anywhere from three to 12 health questions. These policies can have an immediate payout, but the face amounts are also lower and the premiums are also higher than traditional life insurance policies.

Traditional life insurance policies have a full range of health questions and (depending on the insured’s age) a series of health tests, such as a urinalysis or blood test.

However, the face amounts on these policies can be up to 20 times the insured’s income, and the premiums are lower than simplified issue plans and significantly lower than guaranteed issue policies.

For more details on non-medical life insurance in Canada, please contact us at 1-866-899-4849 or visit our Non-medical Life Insurance Quote Page.