Things To Know About Guaranteed Life Insurance In Canada

First, what is Guaranteed Life Insurance (GLI)?

 

Guaranteed Life Insurance in Canada can be either temporary or permanent. “Temporary” is typically used to pay short-term liabilities, such as your mortgage. “Permanent”  is there to help pay your final expenses. Both forms of life insurance are guaranteed, meaning there is no medical test, you are guaranteed to be approved. 

How much coverage can you purchase with GLI?

Most insurance policies offer between $5,000 and $25,000 of the death benefit. However, there are a number of companies that offer guaranteed life insurance products that exceed $1,000,000 of coverage. This gives you a wide range of companies to work with. 

How much does GLI cost?

With insurance in Canada, the more information you provide to an insurance company, typically speaking, the lower the cost of your insurance. Guaranteed Life Insurance will cost slightly more than a policy that was medically underwritten.

The reason insurance companies charge a little more for this type of coverage is there is a greater amount of risk for the insurance company to payout. This is also why if you are in good health, you should first consider other forms of life insurance first, as you will save some money. 

Who typically buys this type of insurance?

• People over the age of 50 who feel they have waited too long to purchase life insurance 
• People with medical conditions that would otherwise be turned down for coverage 
• People who are on medication that could make it hard to purchase medically underwritten coverage
• People who are looking to cover final expenses, funerals, debts, medical bills, etc 
• People who believe they will not be able to get coverage any other way

Which company is the best when it comes to GLI?

There is almost never one company that is best. Companies change their policy so often that a company that might be a good fit for you today, may not be the best fit for you next week. This is why it is always good to work with a brokerage that can help you find and place the best policy for you and your loved ones.