Get the best guaranteed life insurance in Canada
Looking for a guaranteed issue life insurance policy in Canada? You've come to the right place – view all your personalized options with us today.
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We'll show you quotes from multiple providers, so a broker will be in touch to help you choose.
Finalize your policy selection
After talking through all your coverage needs, our broker will help your bind the right policy for you.
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What is a guaranteed life insurance policy?
With guaranteed life insurance the basics remain the same: by paying out regular premiums to your insurance company, the company agrees to pay out a lump sum to whomever you designate upon your passing. This sets up your loved ones financially after you're gone.
A guaranteed issue life insurance policy is exactly what it sounds like – it's a form of lifelong coverage that you're guaranteed to be accepted for, provided you meet the age condition of eligibility. Unlike traditional life insurance policies, there's no medical exam, meaning there's no risk of being denied due to your circumstances.
Is guaranteed life insurance worth it?
It really depends on your situation and personal needs – it may be your best option to get insurance coverage. It is not the cheapest form of life insurance, but it does come with guaranteed payouts and approval. Keep in mind that insurers are aware of the risk that comes with insuring these types of policies. So the caveat is that the death benefit (also known as the amount paid out when you pass) has a much lower limit – typically no more than $50,000. Plus, premiums for these plans tend to be much higher. There may also be a waiting period (e.g. 2 to 3 years) before you're able to make a claim, so if you pass away during this time, your loved ones won't receive the benefit.
Despite this, guaranteed plans can be a viable option for those looking at a last-resort coverage option to protect their loved ones – it can be used to cover basic end-of-life expenses, like a funeral, burial, or cremation. Other terms for guaranteed life insurance include guaranteed issue life insurance and guaranteed acceptance life insurance. And in some cases, it may be used interchangeably with funeral insurance.
Guaranteed life insurance vs. non-guaranteed life insurance
The chart provided highlights the primary differences between guaranteed issue life insurance and traditional forms of life insurance, which can include term life insurance and permanent life insurance (whole life insurance and universal life insurance). Understanding the differences of each feature will help you determine if a guaranteed life insurance policy is right for your situation.
| Feature | Guaranteed life insurance | Traditional life insurance |
| Eligibility | With no medical exam required, approval is guaranteed if you're under the age limit. | There is typically a medical questionnaire and exam which can limit approval. |
|---|---|---|
| Usage | While funds can be used for anything, the main use case is usually for end-of-life expenses, like a funeral or burial. | Funds can be used for anything from income replacement and mortgage payments to legacy planning (for permanent plans). |
| Coverage period | The coverage period for most policies is lifelong, provided you pay all the necessary premiums. | Coverage can range from term (e.g. 20 years) to lifelong, depending on the policy. |
| Death benefit | The death benefit has limitations, remaining on the lower end (e.g. $50,000). | The benefit is flexible – you choose it to meet your needs, be it $25,000 or $1 million. |
| Waiting period | There is usually a waiting period for guaranteed plans (e.g. 2 years), so the policy won't pay out during this time if you pass. | Coverage is typically active right away on traditional plans unless otherwise stated (e.g. suicide may have restrictions). |
| Cash value | Unlike other permanent plans, there typically is no cash value that grows with guaranteed life insurance. | With whole and universal life, there is cash value you can access during your lifetime – but not for term life. |
| Cost | The cost is typically much higher, if you compare it to a traditional plan equivalent with the same coverage. | Term life insurance is very affordable while permanent life can be expensive. But guaranteed policy equivalents still cost much more. |
Who needs guaranteed issue life insurance?
There are a few reasons why an applicant would opt for guaranteed life insurance, but the main use case for this type of product is to provide a coverage solution for individuals who wouldn’t otherwise qualify for traditional plans. This includes those with pre-existing conditions (e.g. individuals diagnosed with cancer) or seniors seeking life insurance coverage. Age and health are major factors in determining what type of policy and how much coverage you can qualify for. By opting for guaranteed acceptance life insurance you get a more streamlined application process and remove the potential qualification hurdles.
Pre-existing conditions
If you can't get approved for traditional life insurance due to a pre-existing condition, such as cancer, guaranteed life insurance can be an ideal form of coverage for the protection you need.
Ineligible seniors
Seniors may be denied life insurance due to the added risk of old age. A guaranteed policy provides a coverage solution, but you'll still need to make the age cut off here (which is typically about 75 years old).
Simplified underwriting
Rather, there isn't much underwriting at all. If you meet the requirements, you're in – which can be ideal if you're under a time crunch, or you wish to avoid medical exams.
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How much does guaranteed life insurance cost?
There are a few main factors that impact the cost of guaranteed life insurance, including your age, gender, and smoking status. Generally speaking, the more risk you present, the higher you'll be quoted – for instance a 60-year-old male smoker will likely pay more than a 25-year-old female non-smoker.
The other big determinant of your premium is your coverage amount. While there are limitations to the maximum you can choose, the lower you go, the less expensive your premium will be. So don't expect to pay the same rate as someone who opted for a $10,000 benefit if you're looking for $50,000 in coverage.
Below are some sample rates we pulled, so you can get a reference point on the price of a guaranteed issue policy. Know that although there are many individualized factors that play into this, health isn't one of them – that's the idea behind guaranteed life insurance.
- $43/month
Guaranteed policy with $20,000 coverage
for a 40-year-old female
- $131/month
Guaranteed policy with $40,000 coverage
for a 45-year-old male
- $307/month
Guaranteed policy with $50,000 coverage
for a 60-year-old male
Features to look out for in guaranteed acceptance life insurance
When considering guaranteed life insurance, make sure you've looked into traditional plans first. These plans typically have more flexible coverage options for a lower price, and guaranteed issue policies are more so designed as a last resort for (otherwise) ineligible applicants.
Once you're set on guaranteed coverage, there are a few features to look out for to make sure the policy you choose is right for you. Below are a few tips of ours for these specialized plans, and as always, be sure to speak to a trusted broker for more guidance.
Look for an accidental death rider
Some policies have an accidental death rider – in this case, if your death is caused from an accident (e.g. car crash), your policy will pay out an increased amount. This can be five times the policy coverage, for instance.
Look for an early payout for terminal illness
Some policies have a living benefit where if you're diagnosed with a terminal illness, you may receive an early payout (or a partial payout) of your death benefit. But there may be restrictions to eligibility.
Consider policies with shorter waiting periods
Guaranteed policies generally have waiting periods in place for the insurer's protection. It's typically between two to three years, and if you pass during this time, your loved ones won't be able to claim the death benefit. Consider looking for a plan with a shorter waiting period if this is a concern.
Make sure premiums stay the same
While guaranteed premiums typically have level premiums, it's a good idea to double check. This means that your premium won't change (or more specifically, increase) as you age while your policy is active.
Consider policies that don't require lifetime premiums
Some policies have a capped age, so you won't need to pay premiums once you reach this number – and the coverage remains active until you pass. This can be 85 years old or 100 years old, for instance. Consider this approach if you want to pay off your policy earlier.
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Frequently asked questions on guaranteed life insurance
How does guaranteed life insurance work?
When you buy guaranteed life insurance, you won’t answer any questions about your health. You choose the amount of coverage and answer a few simple questions. As long as you’re under the policy’s maximum age, typically 75 years, you’re guaranteed to be approved.
Are guaranteed life insurance premiums expensive?
Premiums for guaranteed life insurance are generally higher than term coverage, as they involve more risk for insurers. However, guaranteed premiums can still be very affordable. Much of the pricing will depend on your age, health, the size of your death benefit, and the term. Remember the best way to find affordable life insurance coverage is to shop the market to get the best life insurance rates in Canada.
How much can I be covered for guaranteed life?
Guaranteed life insurance coverage is lower than other policies, as they are more likely to pay out. Maximum coverage is generally $25,000, but can be up to $50,000 with some insurers.
When should I buy guaranteed life insurance?
Guaranteed life insurance is best for people who need coverage, but have been turned down for traditional life insurance policies. Keep in mind that higher premiums means you may pay more than your death benefit if you live a long time.
How soon can guaranteed life insurance pay a benefit?
Usually, guaranteed life insurance has a two year no-claim period, starting from the date the policy takes effect. If you were to die within that time, your beneficiary would be refunded the premiums you paid in that time.
What factors influence guaranteed life insurance rates?
Guaranteed life insurance rates are only based on your age, sex, coverage amount, and whether you smoke. To learn more about what factors affect life insurance premiums, see our article What Is Life Insurance?