Simplified Issue Life Insurance: How Does BMO Insurance Compare to Assumption Life?

The no-medical life insurance market seems to be an increasingly reactive niche market when it comes to direct life insurance carriers in Canada. Consumers have their choice to buy direct or use a broker.

The insurance companies know that too. Two carriers butting heads in this market are BMO Insurance and Assumption Life. BMO Insurance offers two types of no-medical life insurance, their Guaranteed Life Plus plan, which has no medical tests and no health questions, and their Easy One simplified issue policy, which has no medical tests and a health declaration question.

Assumption Life does not offer a guaranteed issue plan, but it does offer several versions of simplified issue coverage. Its flagship simplified issue plan is called Golden Protection

Let’s take a look at how these products stack up against each other:

BMO Easy One

  • Sold direct by BMO and not available through brokers
  • Face amounts up to $25,000
  • Coverage from day one
  • Available to applicants age 50 to 80

 A 61-year-old, male non-smoker with $25,000 in coverage would pay $112.25 per month.

Assumption Life Golden Protection

  • Sold via the company’s independent broker network
  • Face amounts of up to $50,000 in coverage
  • Coverage available on an immediate basis or a deferred basis
  • Available to applicants age 40 to 85

A 61-year-old, male non-smoker with $25,000 in coverage costs $110.18 per month.

You might assume we have a bias towards the Assumption Life plan. Since this is a broker-based site, and we admit you’re probably right. But consider this: the Assumption Life policy is truly more affordable at many ages, has higher face amounts, and in many instances is easier to qualify for. Plus, with one health question, the qualifying procedure is less stringent. For example, there’s no blood pressure–related question.

One final note: we feel there is significant value in dealing with a broker. A well-trained independent broker can look at a variety of carriers to see which one provides the best value. He or she can look into traditional life insurance plans to see if this is an actual option for you. They can also provide ongoing assistance with your insurance needs and help you out at the time of claim.

avatar
LSM Insurance
LSM Insurance

Thanks Maxim. I’m glad you found the info useful.

LSM Insurance
LSM Insurance

Excellent comparison with value added benefit of dealing with your qualified broker or insurance agent.

Ami Maishlish
Ami Maishlish

Yes, the CBC did the piece on Certificate Group Creditor insurance in which deficiencies in the manner in which that type of group insurance is sold were explored. That CBC piece was well researched and far better than the 2007 Roseman regurgitation in The Star of elsewhere pre-published points about Certificate Group Creditor Insurance. True, the CBC piece did refer to an insurance company, but that insurance company doesn’t advertise much on the CBC. Both of your citations – the 2007 Roseman parroting in the Star of bits and pieces of material publishes elsewhere and the CBC piece – dealt… Read more »

LSM Insurance
LSM Insurance

Hi Ami, None off the top of my head. We have wrote several articles on this sitewww.lsminsurance.ca and http://www.nomedicallifeinsurance.ca but our reach while increasing only extends so far.

Ami Maishlish
Ami Maishlish

Yes, I could vaguely recall that piece by Roseman in the Toronto Star Not much of any investigative reporting in that 2007 article; essentially a parroting of bits and pieces of material published elsewhere. I was much more impressed with the quality of material written by James Dawe, CFP who used to do much more thorough investigative reporting before his journalistic freedom to do that was muzzled by the editors at the Star

Ami Maishlish
Ami Maishlish

Hmmm… it’s rather doubtful that the media will get the message out, at least not the commercial media, and for a very simple reason: Commercial media derives the bulk of its revenue from advertisers… “those who pay the piper call the tune”. So, that leaves the task of lobbying for clear text, open disclosure, and urging consumers to be more aware to those brokers and financial advisors who place their clients’ best interests first.

LSM Insurance
LSM Insurance

Articles like the one below http://www.thestar.com/life/homes/2007/04/22/perils_of_a_mortgage_life_policy.html while an older article show that some main stream media are willing to take on the big brands

William Shung
William Shung

The BMO Easy One plan with maximum coverage of $25,000 is really only good to cover final expenses. The Assumption Golden Protection plan with maximum coverage of $50,000 is better. Nevertheless, I have come across many individuals with health problems who require much larger coverage. Roughly 4% of life insurance applications in Canada are declined each year. This represents an estimated 32,000 applications, and $8 billion face amount. 80% of these declines are due to medical or lifestyle history. Readers who belong to this category should know that this is not the end of the road. You can get life… Read more »

LSM Insurance
LSM Insurance

Good points Willia,. Assumption also has The Golden Protection Plus with an increasing death benefit to keep in line with inflation

LSM Insurance
LSM Insurance

Agreed. I think this is the message that brokers and hopefully the media have to get out there. As many insurance carriers are really making a strong push and investing big dollars in marketing their direct lines.

LSM Insurance
LSM Insurance

If you can’t get an explanation or clarification in writing, consider that to be a big “Do Not Enter” sign. Remember, you are buying the insurance so that your beneficiary should be receiving an insurance benefit, not an insurance headache. If you want to will your beneficiary a headache, buy him/her a CD with “heavy metal” music; it’s cheaper.

Ami Maishlish
Ami Maishlish

I am becoming more concerned over the language used for the questions in application forms for the so called “simplified issue” offerings. In some instances, the way the questions are wprded involves mental/psychological interpretation that, IMO, are akin to the text equivalent to a Rorschach inkblot. My suggestion to anyone considering the sale of these product, and more so to anyone considering the purchase of these products are: a. READ the questions on the application form. If the question is unclear, get a WRITTEN explanation from the insurer or at the very least from the Managing General Agent. b. REQUEST… Read more »

LSM Insurance
LSM Insurance

Get something in writing and / or clarification becomes increasingly difficult with Simplified Issue plans sold direct via insurance carriers as there is really no one to speak to other than a call centre. The marketing of direct simplified issue plans has really increased in recent years.