Is Guaranteed Life Insurance worth it?

One question we hear more often today would be “is Guaranteed Life Insurance worth it?”. Where most people are looking for a yes or no answer, unfortunately, it’s not that simple. The correct answer to that question would be in some cases it is. Let’s take a look at which cases it would be worth it.

First, what is the need for insurance?

There must be a need for life insurance, this is something insurance companies look for. And you can be declined by the insurance company to apply for coverage that would make you “over-insured”, because most Canadians are underinsured, this topic is one that is often missed. But the good news is determining the need for life insurance is easier than you might think.

Here is a shortlist of some common needs for life insurance

• To cover funeral cost 
• Cover medical bills 
• Pay off mortgages debts 
• Pay off student loans
• Pay off car loans 
• Pay off other debts 
• To pay for child education 
• To cover capital gains 
• To replace the income of a loved one 

As mentioned earlier, it is a shortlist and there are additional reasons to buy Life Insurance, but there must be a need for it.

Next look at your health condition. This may be the best factor for determining if life insurance is worth it. For people who are in good health and looking for life insurance applying for medically underwritten coverage will be a more affordable option. In short, if you are in good health and applying for guaranteed coverage, applying for guaranteed life insurance is not worth it because you will end up overpaying.

But what if you are not in good health? Even if your conditions are under control, if you take multiple forms of medication, have high blood pressure, have high cholesterol or have recently had a health scare, traditional life insurance might not be an option.

If at the same time, there is a need for life insurance, then guaranteed life insurance would be worth it. Where you might have to overpay for traditional life insurance or if you are worried about being declined, guaranteed life insurance is the solution for you.

For the purposes of this post, we haven’t gone into depth on guaranteed life insurance. To know more about guaranteed life insurance, read our post CLICK HERE

To summarize guaranteed life insurance has its place but it’s not for every situation. Guaranteed life insurance was designed to be affordable for people who can not purchase traditional life insurance. However, you will end up paying more for guaranteed life insurance as compared to traditionally medically underwritten coverage.