Guaranteed Life Insurance

Guaranteed Life Insurance Guide: Intro

Welcome to your guaranteed issue life insurance guide. This page will give you a good understanding of guaranteed issue life insurance (also called Guaranteed Issue Life Insurance or Guaranteed Acceptance Life Insurance), will inform you of savings opportunities, and also provide a number of additional useful tips based on our publications.

Guaranteed issue life insurance is a type of non-medical life insurance. This policy requires neither a medical exam, nor health-questionnaire to answer. It is available for you even if you were declined for a traditional policy during the last 2 years. Typically the coverage (face value) will be limited to $25,000 and there are also a few limitations in terms of payouts, in case an insured dies within the first 2 years.

Let’s look at which cases would benefit from a guaranteed life insurance policy:

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When Can You Benefit from Guaranteed Issue Life Insurance?

There are generally only two cases where you might want consider getting guaranteed issue life insurance:

1. You have been declined for life insurance: Approximately 5% of all life insurance applications in Canada are declined annually. The primary reasons for this are medical conditions or life style issues. In this case you might want to look into guaranteed issue life insurance as a viable alternative.

2. You have a serious health issue(s): There are numerous health related issues that can affect eligibility for traditional life Insurance (Parkinson’s Disease (PD), Cancer, Alzheimer’s etc.). Nevertheless, there is still a chance you could get a traditional life insurance policy, but if that fails, then you can apply for a guaranteed issue life insurance policy. An experienced broker will know the particular insurance programs insuring those issues.

How Can You Save on Guaranteed Issue Life Insurance?

  • Employee / Union members: Some companies offer discounts to union members ( e.g. IBM Canada or Research in Motion)
  • Annual vs. monthly payments: In comparison to monthly payments, annual payments save insurers administrative costs (e.g. sending bills) and therefore they may reward you with lower premiums.
  • High blood pressure cases can mean different premiums with different insurers: Typically high-blood pressure leads to higher insurance premiums but various life insurance providers treat and price those cases differently. Often any blood pressure exceeding 140/90 can trigger higher premiums. Some insurance brokers know those cases better and will be able to navigate you to the company with better rates.
  • Explore Return of Premiums conditions: Some policies allow getting back the part of the premiums if you have not made use of them – ask your broker to make the calculation for you. Slightly higher premiums upfront can make sense in case of later premiums returns.
  • Got Life, Disability and Critical Illness? Cancel Mortgage insurance: Mortgage insurance is a fascinating product created by money lenders. Simply said, it is a different name of Life, Disability and Critical Illness insurance policy associated with payments for your mortgage.  Got a mortgage of $500k together with mortgage insurance for that? Well, if you have a Life policy large enough, you can save yourself mortgage insurance.
  • Bundles can be cheaper: Getting several insurance products from one provider e.g. Life insurance together with Disability Insurance and Critical Illness can be often rewarded by lower premiums. Or you can sometimes bundle Life insurance with Non-Life insurance (e.g. Home or Auto) – that depends from insurance provider.
  • Meet multi-life discount: This option is quite similar to the previous one but you still get two separate policies whereas one of them will have a significant discount.
  • Other tips: Contacting an experienced, licensed broker (see a button below) will help you to find other ways to reduce insurance premiums of your guaranteed life insurance premiums. Discussion with broker is entirely free and there is absolutely no obligations to buy.

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