This article is intended to be brief and give you a little insight into the different companies that offer guaranteed life insurance products by review only a few key differences between some of the companies. As always, products and conditions are subject to change, it’s best to consult with an expert before purchasing any form of coverage.

RBC Insurance

Must be under the age of 75 to apply. With RBC guaranteed issue policy they only allow purchasing coverage of up to $40,000 in benefits. This will be fine for people who are looking to cover the funeral costs, medical bills, and unwanted debts. But not suitable for people who need a larger amount of protection.

Canada Protection Plan (CPP)

Canada Protection Plan is one of the leaders in guaranteed life insurance. They have both Term and Whole Life options available as guaranteed coverage.

Term policies offered are Term 10, 20, 25, and 30 years. This coverage is ideal for covering short term liabilities, like your mortgage or other debts. With this coverage, there is no medical test, and simplified issue meaning you can apply over the phone. Their term plans are renewable to age 80 if those limited liabilities take longer to pay off than expected. If you need protection past age 80 their permanent life insurance is a better fit.

Permanent whole life with CPP offers an easy application process with again, no medical tests. They have both a whole life plan and a T100 which is a low-cost way to afford permanent coverage.

Humania  

Humania has a wide range of guaranteed term products. Their Term length only offers 3 solutions, term 10, 20, and 100. The application process can be done over the phone with no medical tests. Both their term 10 and 20 plans are renewable up until age 80.

Assumption Life 

Assumption Life offers a wide variety of no medical guaranteed issue plans. They only have term 10 and term 20 available, however, they have multiple types of no medical term policies. Depending on your pre-existing health conditions and the amount of coverage you need Assumption life offers a wider variety of ways to get it.

Assumption Life also has multiple permanent Life insurance products. Their product par plus is the whole life insurance product that offers a dividend paid to you, which can either help increase your income or increase the cash value that accumulates in the policy. Very few guaranteed issue life insurance companies offer a product like this. Although you must be under the age of 75 to apply.

If I am over the age of 50, can I still get Life Insurance?

The short answer to this question is, yes. Age alone isn’t enough to decide whether or not you can still purchase life insurance. There are increasingly more options for people over the age of 50, lets break down some of the options you have so you can better understand which is right for you.

The first thing you’ll want to consider is your health:

• Do you smoke?
• Do you take any prescription medication?
• Have you be tested or diagnosed with any condones in the last 12 months?

Regardless of how you answer those questions, there are still affordable life insurance options for you. If you answered no, to all of those questions lets look at your options.

Healthy over the age of 50

Traditional life insurance still might be the best way to go. When we refer to traditional life insurance, we normally mean medically underwritten. If you have nothing hide and are being honest about your health status, traditional life insurance will be the most affordable option for you.

The reason for this is because you give the insurance company more information on who they are insuring. This gives them a better picture and in turn, you have to pay less for life insurance.

But what happens if you (like most Canadians over 50) take some medication or smoke on a regular basis?

Well, good news, there are still affordable options but depending on your specific situation, your options might be limited. You see, if you are over the age of 50 and take medication for something like high cholesterol, you might still be able to qualify for traditional life insurance.

Medication alone isn’t enough to determine which options are best for you. What we always recommend is to work with a broker, someone who can help navigate your specific needs and find the best policy for you, obviously at a price you deem to be affordable.

So what are the options if I take multiple medications or have been diagnosed with some health concerns in the past several years?

Guaranteed issue life insurance is what you’ll want to look at. Guaranteed issue life insurance is exactly that, you can’t be turned down for any reason. With the type of coverage, there are normally two factors you’ll need to know. First, that coverage is normally capped.

This is highly based on the company you work with, but many companies limit your coverage to $25,000. At least to start, this is the main reason to review your insurance, for people who have been in good or controlled conditions for several years might qualify for more coverage or a better rate. So look at the $25,000 as a stepping stone, to better coverage later on.

The second thing you’ll need to know is some companies may offer a waiting period. Think of this as a two year period where if you were to pass away, your beneficiary would collect 100% of the premiums you paid into the policy not the full $25,000 of coverage. After the 2 year period, the full amount would be paid as a death benefit.

Why do some companies have a waiting period on guaranteed issue life insurance?

Financially it would be viable for the insurance company if they didn’t have a waiting period. Think about it, everyone who was on their death bed would purchase life insurance for a few hundred dollars, and then their beneficiaries would receive tens if not hundreds of thousands of dollars in benefits. An insurance company simply wouldn’t be able to survive.

In short, if you are over the age of 50, you still have many options. The goal should be to find the right one for your needs.

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

• Funeral cost
• Medical bills
• Other debts

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.

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.