With a guaranteed issue life insurance policy, you get approved for coverage regardless of your health status. Unlike with typical life insurance products, you don’t have to be approved medically, Instead, you’re approved on the spot. You get the policy almost immediately. In this case, “guaranteed” really does mean guaranteed.

If you’re looking for insurance, this probably seems like a pretty attractive process. After all, if you can avoid intrusive tests and questions that are going to suck lots of time out of your week, why wouldn’t you choose this option? Well, it comes down to 3 main reasons:

Cost

$100,000 of coverage in guaranteed life insurance policies will always be slightly more expensive than medically underwritten policies. If you are in good health, applying for guaranteed coverage will only cost you more than applying for traditional life insurance.

What happens when your insurance company doesn’t know anything about your medical history?

When you apply for guaranteed issue life insurance? It’s extremely difficult for them to price your policy. And because insurance companies aren’t in the business of giving away free money, they make up for the lack of information by placing guaranteed life insurance applicants into the highest-risk groups. In other words, if you want to be automatically approved for coverage without providing any medical information, insurance companies will just assume your health is poor and charge you higher premiums. This is why you should apply for medically underwritten policies if your health is in a good condition.

Coverage Amounts 

All Guaranteed life insurance providers limit the amount of coverage you can apply for. With more and more Canadians need more coverage, guaranteed life insurance might not be the right option for you.

Many companies limit coverages to $25,000, $50,000, or even $100,000. However many people will need more coverage than the afford mentioned. This would be another reason why coverage amounts may be a deciding factor for you.

Length Of Coverage 

Guaranteed life insurance used to only come in term insurance, either term 10 or term 20 years. Now you can apply for life payor coverage to age 100. However, these policies often have less coverage than term options.

Everything here can be summed up as not purchasing the right coverage for you. Guaranteed life insurance can seem like the perfect fit, however, you need to factor in if your health actually dictates this type of life insurance being the right fit for you.

It’s now 2021 and let’s face it, 2020 changed a lot of things, and Guaranteed Issue Life Insurance is one of them. If you are considering life insurance in 2021 with no medical test, this is an article you’ll want to consider reading.

More and more companies today offer a guaranteed issue product. Let’s break down the few areas you’ll need to consider.

First, is the coverage amount, how much coverage will you or your loved one needs? This is an important question for you because all guaranteed coverage providers have limits. Many companies cap the amount of coverage to $100,000 with some companies now going up to $300,000 and even $500,000 on guaranteed term coverage.

However, if you are looking to cover final expenses, funeral costs, or small debts you should have plenty of options. I bring this point up because one of the major reasons people purchase life insurance is to cover a mortgage. As mortgage prices rise here in Canada Many people also purchase a mortgage over the guaranteed limit, which could pose some problems for some people applying.

The second point is your current health status. We really do live in a world where being lazy can hurt you at times. If you are in good health and take no predictions medication applying for guaranteed coverage might seem like the easier option, but you will end up spending more on guaranteed coverage as opposed to medically underwritten coverage.

We see this more often now, where someone will reach out to us wanting guaranteed coverage because it seems easy to get and they don’t want the potential of being declined. However, it only ends up costing them and their loved ones more. In short, if you are in good health you should always consider medically underwritten coverage first, as it will always be your most affordable life insurance options.

Last, consider the companies you have access to. As mentioned there is now a long list of companies to consider. Companies like:

• Humania Assurance
• RBC
• Canada Protection Plan
• Assumption Life
• Manulife
• BMO

And the list goes on. However, each policy is a little different. Some companies might be a better fit depending on what you are looking for. For example, RBC only has term coverage available for guaranteed issue. However, assumption life has permanent guaranteed issue products that are available. Understanding your needs is always most important when looking for coverage.

For more information or if you would like to speak to one of our non-commissioned staff feel free to contact us, as we should happily point you in the right direction.

It’s a new year and many companies have made some massive changes to their plans. Which brings us to the question, how does Canada Protection Plan stack up in 2021?

Canada Protection Plan remains to be one of Hand’s top providers in Guaranteed Life Insurance plans. This is perfect for people who are “hard to insure. Whether you have been declined before or have other health concerns CPP may be one company you want to look at. 

Guaranteed coverage can be very attractive because you can NOT be turned down. However, that does not mean it’s the best plan for you. As always when it comes to life insurance, if you are in good health, you should get medically underwritten. Yes, your policy will take longer to be approved but it is well worth it when you pay less for the same amount of coverage you would receive from guaranteed coverages. 

First, we should understand what is meant by non-medically underwritten policies. This means you will not have to perform any blood work, urine, or saliva tests. However, you may still have to answer medical questions to get your coverage approved.

CPP has several different options for hard to insurance clients, depending on your needs, they have plenty of options even if you have been turned downed or declined by other insurance providers.

 

Deferred Elite Term Coverage

 

 Pros 

• Perfect for the hardest to insurance, if you have a series of health conditions or those who have recently been declined.
• Coverage up to $350,000
• Term options that range from 10, and 20 years plans
• No medicals required to be approved 

Cons 

• Deferred Elite Term has a 2-year deferral period. This means if you were to pass away in the first 2 years, your beneficiary would only receive the amount you have paid into your policy. Not the full death benefit you applied for. Because this coverage is for people with severe medical conditions you can understand that this is the insurance companies way to reduce their risk. 

Preferred Term

 

• For applicants who are in good health already, maybe have some health concerns. 
• Non-medical process
• Coverage up to $1,000,000 
• Coverage periods range from 10, 20, and 25-year terms 
• No waiting period coverage starts immediately 
• Renewable to age 70 

Cons 

• There are other providers who offer coverage renewal past age 70 and even life pays. 

Preferred Elite Term 

 

• For anyone in very good health 
• Plans are fully underwritten but more affordable 
• Coverage up to $1,000,000 
• Term 10, 20, 25 options 
• No waiting period like the deferred elite term coverage

Cons 

• Compared to other plans on the market, you will likely find more affordable options. 

Moving into 2021, CPP still has a place in the market. Based on 2020 however, they have more competition and will be forced to stay competitive especially if they want to remain as one of the top non-medical providers. 

More and more Canadians every month purchase Guaranteed Life Insurance. With the recent surge in companies offering guaranteed life insurance policies, it’s clear that it now has a substantial place in the market but is it the right fit for you?

The easiest option isn’t always the best option. And unfortunately, we see that when comparing guaranteed issue life insurance policies vs medically underwritten policies. Let’s compare both in an easy to understand way.

Guaranteed Issue Life Insurance:

• No medical test required to purchase overage
• Coverage normally can be applied over the phone
• Depending on the amount of coverage you apply for there might be some medical question you must answer in the application
• Short approval times
• Guaranteed not to be turned down

Medically Underwritten Life Insurance:

• A medical test is needed (salvia kit test, urine test, or blood work are most common)
• Coverage can be applied for over the phone or paper application
• More coverage available compared to guaranteed issue
• Longer application times where it may take weeks or months in some cases to be approved
• Higher risk you might be turned down

 

After reading those two comparisons which would you choose? 

Well, if you are like most Canadians they naturally would gravitate toward the guaranteed issue. As advisors, we understand that it is more attractive. But what’s the catch?

Guaranteed issue is MORE EXPENSIVE FOR THE SAME COVERAGE.

Coverage on average is 20% cheaper if you go with medically underwritten coverage. Meaning, if you are in good health, you should always consider medically underwritten coverage first as it is the more affordable option.

The guaranteed issue will be a better option for people who have recently been declined or are on several types of medication that may make it more difficult to get traditionally medically underwritten coverage.

The simple truth as it stands is there is a place for both and it’s always dependant on your own situation. However, you will not get the most affordable plans AND the easiest application process, it will be one or the other.

Canada Protection Plan is one of Canada’s top Guaranteed Life Insurance providers. If you have had trouble getting coverage or are worried about your health CPP might be a great fit. Let’s look at what you need to know before considering CPP.

WARNING: For people in good health, there are more affordable options. However, the rest of this article will be focused on CPP and its offering.

Canada Protection Plan is one of Canada’s youngest insurance companies, being founded in 1992. However, CPP offerings are unique with both simplified and non-medical options that could be a great fit for people who have health concerns.

A little know fact, CPP products are underwritten by Foresters Life Insurance Company. Which is one of North America’s oldest insurance companies.

CPP has several different options for hard to insurance clients, depending on your needs, they have plenty of options even if you have been turned downed or declined by other insurance providers.

Deferred Elite Term Coverage

 

• Perfect for the hardest to insurance, if you have a series of health condition or those who have recently been declined.
• Coverage up to $350,000
• Term options that range from 10, and 20 years plans
• No medicals required to be approved
• WARNING – Deferred Elite Term has a 2-year deferral. Meaning if you were to pass away in the first 2 years of owning the coverage, your beneficiary would only receive dollar for dollar of what you put into the policy. NOT the full death benefit on this policy. Keep in mind, this is for people who are severely ill or are not able to get other coverage.

Preferred Term 

 

• Desjardins for applicants who are in good health already, maybe have some health concerns.
• Non-medical process (to be clear, there are medical question but no blood work or urine testing)
• Coverage up to $1,000,000
• Coverage periods range from 10, 20, and 25-year terms
• No waiting period coverage starts immediately
• Renewable to age 70

Preferred Elite Term 

 

• For anyone in very good health
• Plans are fully underwritten but more affordable
• Coverage up to $1,000,000
• Term 10, 20, 25 options
• No waiting period like the deferred elite term coverage

Canada Protection Plan Whole Life Review 

 

• Starts with a minimum of $10,000 of coverage
• Premiums are guaranteed for life, you’ll never have to worry about paying more
• Straight forward process for applying
• CPP term polices are covetable to whole life options up until age 70

Final Thoughts 

CPP has its place in the market, they are great for people with health concerns. However, if you are in good or okay health you have more options. Some alternative options out there will be more affordable than CPP. However, when it comes to the people who have been declined or have severe medical concerns, CPP will be one of the best options for you.

As I write this in November 2020, non-medical or Guaranteed Life Insurance continues to surge. More and more Canadians are purchasing this type of life insurance than any other type of insurance.

With that being said, one company comes up more often than any other company and that’s Humania Assurance. So let’s take a look at Humania and see if it is something you should consider or if you should pass on this opportunity.

Type of products

Humania Assurance offers two main types of Life Insurance, Medical and Non-medical Life Insurance. One of the biggest limitations you will find between medical and non-medical coverages is the amount of coverage you can apply for. All non-medical coverage limits the amount of coverage you can apply for and with Humania, it is no different. Their non-medical insurance caps the amount of coverage you can purchase to $300,000.

Medically Underwritten Term Life Insurance with Humania

Humania offers medically underwritten coverage where you can apply up to $5,000,000 of coverage. They offer term coverage from term, 10, 15, 20, 25, 30 and coverage will last until your age 80.

What you should notice is their medically underwritten coverage offers a wide range of coverage terms, without only a few companies offering more term lengths (such s RBC for example). However, $5,000,000 of coverage is considered low, as many medically underwritten policies will offer more than $5,000,000 of coverage.

Why are so many Canadians interested in Humania?

There are reasons why Humania Assurance has become highly sought after in Canada. Let’s take a quick look at some of those.

• Competitively price term life insurance options
• Multiple coverage options including term 10, 15, 20, 25, 30 
• A very simplified application (compared to other companies) 
• Quick fulfillment (many companies will take weeks to approve your coverage, Humania takes days) 
• One of the first companies that allowed you to apply online pin a non-face-to-face application 
• Non-medical options up to $300,000 of coverage

When you look into what other insurance companies offer these are the major reason why Humania insurance has become incredibly popular and has its place for many Canadians. So here’s what you need to look out for.

What to look out for before purchasing Humania?

Coverage only lasts to age 80. This is very common for many Term Life Insurance policies, however, it is not ideal for everyone. For some Canadians they will need coverage into their 90, unfortunately, if they waited until they need it, they will not be able to get coverage.

• No preferred rates, most life insurance companies will offer better rates to people who are in good health. However, Humania does not offer any preferred rates 
• No access to your policy online – even though the application is done online 
• Only $300,000 for guaranteed (non-medical) life insurance 
• Coverage only to age 80 

As I’ve stated Humania Assurance is a great company and the right fit for many Canadians. However, when looking at the list above you can see that it is not for everyone.

Is Humania the right coverage for you?

Humania offers a wide range of options and can fit for many Canadians, especially ones looking to apply non-face-to-face and have some health concerns. Think Humania might be the right fit for you.

If you are looking for life insurance but are not sure what company is going to be the best fit for you? We can help! Our non-commissioned staff will help you find and apply for the best policy given your specific needs. Visit our Contact page and fill in your information and we will happily reach out to help.

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.

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. 

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.