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Understanding the Basics of Guaranteed Issue Life Insurance

Everything you need to know about this important coverage.

When it comes to insurance, you have so many options available to you. There’s homeowners insurance, health and dental insurance, renters insurance, travel insurance, life insurance, and even pet insurance for your best friend Rover. And that’s just the shortlist.

However, one type of insurance that you might not be familiar with but is particularly important for Canadians is Guaranteed Issue Life Insurance. Let’s take a closer look at this coverage.

What exactly is Guaranteed Issue Life Insurance?

Guaranteed Issue Life Insurance is coverage designed for individuals with serious health conditions. It’s from a similar family of coverage as life insurance, but it’s for people who may not qualify for traditional life insurance due to their condition or because they are over the age limit. What’s great about Guaranteed Issue Life Insurance is that the policy does not (typically) require the applicant to answer any health questions or undergo a medical exam. This is great because 50% of individuals “are more likely to purchase life insurance if it’s priced without a physical examination” (1). The insurance company will also not review your medical or prescription history. So, all you have to do to apply for coverage is apply.

Who is Guaranteed Issue Life Insurance designed for?

As mentioned above, Guaranteed Issue Life Insurance is for those with serious health conditions. Typical applicants are starting to plan for, approaching, or in their retirement years with ages ranging from 40 to 75.

What can it protect?

As you can imagine from the 35-year age range of applicants, what coverage can protect really depends on the life stage. If you’re getting coverage in your early 40s, you might want to help protect your child’s education fund while if you’re in your 50s or 60s, you probably want coverage to leave some money to your grandchildren or to assist your spouse in retirement. The flexible coverage amounts let you choose what you want to focus on and help protect.

How much coverage is typically offered?

The amount of coverage available to you will vary from insurer to insurer. However, typically Guaranteed Issue Life Insurance offers lower coverage amounts than Term Life Insurance. With CAA Guaranteed Issue, you can get between $5,000 and $25,000 of coverage

Finally, why are Canadians choosing Guaranteed Issue Life Insurance?

Many Canadians are choosing the protection of Guaranteed Issue Life Insurance because they want to help protect themselves and their family. They know that they have an underlying health condition (or conditions) and need some sense of security. Because coverage is so “fast and easy” to apply for and has flexible coverage amounts, it’s becoming the smart choice of many Canadians.1 Especially when you consider that 90% of individuals think “a family’s primary wage earner needs to own life insurance” (1). People are going with the guarantee of Guaranteed Issue Life Insurance.

Interested in learning more about Guaranteed Issue Life Insurance?
Find out more about the coverage available to you from CAA. Or call 1-888-334-4561 to speak with a Licensed Insurance Advisor about your coverage options. 


(1) “Key Findings for the 2018 Insurance Barometer Study.” April 2018.

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