Simplify Your Life Insurance

Life insurance doesn’t have to be complicated. CAA gives you a breakdown of the differences between Simplified Issue and Guaranteed Issue Life Insurance.

by Mary Wimmer


Are you having problems – or finding it nearly impossible – to get affordable life insurance coverage because of health issues or your medical history?

The good news is that there are life insurance plans available that require no medical exam: Guaranteed Issue Life Insurance and Simplified Life Insurance.

They may look the same at first glance, but there are important differences between these two types of coverage that you should be aware of before you apply because they could impact the cost of your premiums.

The differences between these two types of policies could also determine whether your application is accepted or declined.

Simplified Issue Life Insurance


If you apply for Simplified Issue Life Insurance coverage, you won’t have to undergo a medical exam. But you will have to answer a number of health-related questions. If you have a health risk, you may be charged higher premiums by the insurer.

In cases where the health risk is deemed to be too high, coverage will be declined. Moreover, most Simplified Issue Life Insurance plans may not be available to you if you have been turned down for coverage in the last two years. Typically, there are four or more questions asked when applying for Simplified Issue Life Insurance. (Some companies ask even more questions):

  1. Do you smoke?
  2. Do your currently reside in a hospital or long term care institution?
  3. Have you been declared terminally ill?
  4. Do you have HIV or AIDS?

If you’re a smoker, your premiums will be higher. If you answer yes to questions 2, 3 or 4 you will likely be declined for coverage.

Guaranteed Issue Life Insurance


Like Simplified Issue Life Insurance, Guaranteed Issue Life Insurance does not require a medical exam. However, the big difference is that, unlike Simplified Issue Life Insurance, there are no medical questions to answer. And Guaranteed Issue Life coverage is available to you even if you have been declined in the last two years.

That’s right. As long as you meet the eligibility criteria (for example, being a Canadian resident aged 40 to 75) your acceptance is guaranteed – regardless of your current health, medical history or age. You cannot be turned down.

Basically, as the name implies, you are guaranteed coverage, as long as you continue to pay your premiums.

No medical exam. No health questions. No underwriting. Many people who choose Guaranteed Issue Life Insurance do so because they want to leave an extra financial cushion to a loved one or they want to ensure that their funeral and final expenses are taken care of for their family.

Looking for life insurance? Worried you’ll be turned down because of your age and/or health issues? CAA Guaranteed Issue Life Insurance offers you an affordable way to leave your loved ones that extra measure of security. Guaranteed.

Learn more today, or call 1-888-334-4568.

Underwritten by The Manufacturers Life Insurance Company (Manulife).


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