Know More About Guaranteed Issue Life Insurance

Know More About Guaranteed Issue Life Insurance

What is guaranteed Life Insurance?

Guaranteed Issue Life Insurance or Guaranteed Acceptance Life Insurance is a type of life insurance that does not require you to answer any health questions, undergo a medical exam, or allow an insurance company to review your medical records. Sometimes a guaranteed issue is also referred to as no questions life insurance.

These policies are typically sold with $5,000 – $25,000 of the death benefit, although more can be applied for. This becomes an extremely affordable way to make sure your loved ones are taken care of, and your last memory for them isn’t a final expense bill. You see we all leave final expenses

With Guaranteed Issue Policies you can cover those final costs regardless of your health.

What’s the catch? Is guaranteed issue life insurance too good to be true?

Well, that would depend on the company you work with. Here’s what you need to understand. For coverages that do not ask any medical questions normally, there is a waiting period.

This waiting period (typically 2 years with most companies) states that if you were to pass away in the first 2 years of owning the policy your beneficiaries would only receive the amount you paid into the policy, not the full death benefit.

Why do insurance companies have a 2 year waiting period on guaranteed issue policies?

If you think from the insurance companies’ point of view, everyone could wait until they were on their death bed and then pay a small amount for their beneficiaries to relieve tens if not hundreds of thousands.

Because they can’t do this, they make a 2-year waiting period, where they pay a dollar for dollar what you put into the policy to your beneficiaries. That way they are left with something.

What does a guaranteed issue policy cost?

This will depend on your age and the coverage amount. One thing that is worth noting if you are in good health, you should apply for traditional life insurance as opposed to guaranteed issue life insurance, why? Simple it will cost you slightly less to get a life insurance policy that is medically underwritten.

The reason for that is the insurance company gets a better picture of who they are insuring, because of that it ends up being slightly cheaper.

What company is best when it comes to guaranteed issue life insurance?

That’s a tough question to answer, considering it will change over time. As of right now, CPP, Assumption life, and RBC all have great guaranteed issue policies.

However it always comes down to you, your health status, your age, and how much coverage you would need. It’s always best to work with a representative that can help shop the market and find you the best plan.

That’s why here at TIP Services we have non-commissioned staff standing by waiting to help answer your questions. If you would like help finding the best plan for you CLICK HERE to get a FREE quote.

Get a FREE online Life Insurance Quote

GET A QUOTE

fast, convenient and easy to use

What You Need To Know About Guaranteed Life Insurance

What You Need To Know About Guaranteed Life Insurance

What Is A Guaranteed Life Insurance?

 

Well, it’s life insurance that regardless of your situation, you can purchase even if you have been declined before.

 

What’s different about guaranteed life insurance? 

 
This depends largely on the company you apply with. Depending on your health condition these insurance companies may limit the amount of coverage you can receive. Most guaranteed issue policies range between $5,000 and $1,000,000 of coverage. The difference between those policies comes down to the number of questions you will have to answer. For more coverage, you will need to answer more questions.
 

Additional Limitations

 
For some people who have recently experienced major health concern, there might be some other stipulations. One of them being a 2 year wait period. Meaning if you were to pass away in the first 2 years, your beneficiary will only receive the amount you have paid in premium, not the total death benefit. After the first 2 years your beneficiary will receive the full amount of coverage.
 

Length Of Term 

 
How long the coverage lasts depends on the policy. You can get the coverage that is level and will be there for you as long as you need it. For some people who have recently purchased a property or have a debt, they would like to cover a term 10 or term 20 coverage option might make more sense.
 

Price 

 
The cost to own guaranteed life insurance is slightly more expensive than a normally underwritten policy. This is why if you are in good health, you should try and apply for a normally underwritten policy first. As a normally underwritten policy will be more affordable.
 

Who Is This Right For? 

 
This is great for people who are later in life, looking for coverage. People who have some medical conditions that might make it hard for them to apply for other coverage. Or anyone who has been declined for life insurance in the past.
 

What Are The Other Options? 

 
The other options would be considered to be a traditionally medical underwritten. Yes, there will be some questions you need to answer pertaining to your health. But as well, there will be some version of a medical test (salvia kit, urine sample, or blood profile) that might be required as well.
 

How Do You Know Which Is Right For Your Own Particular Case?

 
It’s best to contact an unbiased broker. Our friendly non-commissioned staff is trained to help guide you from application to approval. For any additional information please feel free to contact us for more details.
 

Get a FREE online Life Insurance Quote

GET A QUOTE

fast, convenient and easy to use

Life Insurance Over The Age Of 55

Life Insurance over the age of 55

Can you still purchase life insurance over the age of 55? It’s no secret that the longer you wait to purchase life insurance, the more it will cost you. But what do you do if you are over the age of 55? 

Well, good news. Insurance companies have realized for years that the “boomers” are getting older. Many of which never purchased life insurance when it was more affordable. Which poses a problem insurance companies decided to solve. 

Many companies today offer a wide variety of programs for people 55 and older. 

We can say confidently, there’s a plan for you. The biggest factor in choosing a plan is your health.  For people 55 and older who do not take:
 

  • Prescription medication 
  • Ingest nicotine products
  • Have had, or do have a serious illness  

Then a traditional insurance plan that is medically underwritten is your best option. The reason for this is your cost to own life insurance will be less then our next option. 

Guaranteed issue. Guaranteed issue policies were created because people are getting older. Many of which need life insurance but have some condition that may have prevented them from getting coverage in the first place. 

Guaranteed issue might be slightly more expensive then traditionally underwritten polices. However, they are the easiest way for your loved ones not to be out of pocket when your time comes.  


For more information feel free to reach out to us and a non-commissioned advisors will be happy to help. 

Get a FREE online Life Insurance Quote

GET A QUOTE

fast, convenient and easy to use

What you need to know about COVID-19 and purchasing life insurance

What you need to know about COVID-19 and purchasing Life Insurance

Are you looking for Life Insurance during the COVID19 crisis? Here’s what you need to know. 
 
There is a misconception that life insurance is now harder to apple for because of COVID19. This is simply incorrect, in fact, it is now easier to apply for life insurance than ever before. Most Canadian insurance companies have made it easier for Canadians to apply and purchase for life insurance. Here is what you need to know. 
 

Easy application process 
 
First, because of the recent outbreak, most companies have made applying for life insurance easier. You can now purchase life insurance without having to meet with an advisor face-to-face. Most insurance can now be applied for online and a non-commissioned advisor can walk you through the process over a phone. This also means the approval times have been cut down, so your coverage can be placed in effect much sooner. 
 

Coverage limits 
 
When it comes to applying for coverage over the phone, their normally will be a maximum you can apply for. With most companies the most they can apply for is $1,000,000. However some companies allow more. As I write this from our office in Richmond hill Ontario, companies like Desjardins offer up to $5,000,000 of life insurance coverage without having to meet with an advisor face-to-face. This means for most Canadians they can find an option that is right for them without having to worry about the process. 
 

No medical tests
 
Depending on the coverage you are apply for, you may be able to purchase coverage without having to have any blood work, saliva test or urine samples taken. Typically you will need to ask a series of health related questions first. The amount of questions will be depended on the carrier you go with. The good news, is there are carriers that offer guaranteed issue policies even if you are in a poor health condition. 
 

Guaranteed Issue Policies  
 
Guaranteed issue policies are great for people with health conditions, who take several different types of medication and for people who are little older and are worried about high premiums. 
 
The amount of coverage you can purchase with a guaranteed issue policy does change depending on how you answer the questions. The amount of coverage you can with a guaranteed issue policy ranges from $25,000 to $1,000,000 of coverage.
 
Think about all the people you care about and ask yourself, what would their life look like if you were not around to provide for them. How would they be impacted financially? Would they have trouble paying for a mortgage, food cost, clothing etc. If you answered yes, you should look for a life insurance policy that will help you protect the people you care about that doesn’t break the bank to get you there. 

Get a FREE online Life Insurance Quote

GET A QUOTE

fast, convenient and easy to use