Guaranteed Issue Life Insurance Facts

Posted on April 28, 2012 and updated October 2, 2015 in BGS, Canadian Life Insurance Companies, Insurance Types, Life Insurance Canada News, Non-medical 4 min read
Doctors demand action
Guaranteed issue life insurance
has no medical exams
or health questions.

Update: Oct. 2, 2015

When this post was originally published, BGS had ceilings on coverage levels, $500,000 for the Life Protection and $3,000 per month for the Disability Protection. They have since been able to get those coverage limits removed. So applicants can now purchase as much coverage as they qualify for based on their income for Disability Protection and outstanding mortgage loan amount for Life Protection.

Guaranteed issue life insurance can be obtained without a medical exam and without answering health questions. The following are some additional guaranteed life insurance features:

1. Guaranteed issue policies can be purchased directly from insurance companies or via independent brokers.

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 $25,000. Bingham Group Services, though, offers a guaranteed issue mortgage insurance plan with no ceiling on the face amount to cover the insured’s mortgage or line of credit balance. As long as the that face amount matched the outstanding mortgage or line of credit, the insured will qualify.

6. Most guaranteed issue plans have a two-year waiting period on non-accidental deaths.

For more details on no-medical life insurance in Canada, please contact us at 1-866-899-4849 or visit our No Medical Life Insurance Quote Page.

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