Questions to ask before you buy Life Insurance

As one of the leading brokerages in Canada when it comes to guaranteed issue life insurance, one of the most common questions we get is:

“What are the top insurance companies in Canada for guaranteed life insurance?”

 Simply it’s not the right way to think about it. Every company is different, their policy is different, their coverage amount is different, how much they cost differs, and so on. It’s better to look at your own specific situation and figure out:

Which company is best for you?

Most Canadians who purchase a guaranteed Life Insurance policy do so because they have some health problems that would make it more challenging, if not impossible to purchase traditional Life Insurance. The truth is depending on the coverage amount, the time you need the coverage, and whatever health concerns you have all play into which company is going to be the best for you. Let us take a little look at these three areas in a bit more depth.

How long do you need coverage for? 

The length of term you need changes person to person. Just because you are getting older or are hard to insure doesn’t mean there is one size fits all. In fact, far from it. Companies still offer a wide variety of term lengths from term 20 to T100 or other forms of whole Life Insurance.

A term 20 or Term 30 might be a good fit for someone looking to cover a mortgage, which we see more of these days. The older generation is helping young adults purchase their first house and are in need of some financial protection. This option may be a better fit for someone in a similar situation.

Term 100 or Whole Life is great for people who are thinking about their final cost. You see, we all leave the final expense. Funeral cost, medical bills, other debts, all end up on the shoulders of your loved ones. But it doesn’t and shouldn’t be that way.

How much coverage do you need?

How you answer those questions determine how much coverage you can purchase at that time. As mentioned earlier, those ranges change company to company. So working with a brokerage is a good idea, as they can help you find the best policy for your specific needs.

Working with pre-existing health concerns 

Guaranteed Issue Life Insurance is designed to work with people who are traditionally hard to insure. That being said, each company qualifies “hard to insure” slightly differently.

Depending on your conditions would depend on the company you go with. When working with a true broker it’s easy to see by their approach if they are recommending the right option.

Typically if you have a severe condition they may be able to recommend something on the spot. However, if you are the majority of “hard to insurance” it’s because of several medications you take, and in that saturation, your broker should get a list of your medication and then do some research into which company would be the best company for you.

It is impossible for any advisor to be able to know every medication and every situation that could come up, its times like those you can tell if you have an advisor worth working with.

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