Not everyone qualifies easily for traditional life insurance. Health conditions, age, or past medical history can make approval difficult—or even impossible. Guaranteed Issue Life Insurance exists for this exact reason: to ensure that Canadians can still access life insurance protection, regardless of health status.
We help clients across Quebec and Ontario understand guaranteed issue options and compare solutions from major Canadian insurers such as Sun Life, Canada Life, iA Financial, Manulife, Desjardins, and Beneva. Our role is to make sure expectations are clear, coverage is appropriate, and all recommendations follow AMF and FSRA guidelines.
What Is Guaranteed Issue Life Insurance?
Guaranteed Issue Life Insurance is a type of permanent life insurance that:
• Requires no medical exam
• Requires no health questions
• Offers guaranteed approval (within age limits)
• Provides lifetime coverage
• Pays a tax-free death benefit to beneficiaries
Approval is based mainly on age and residency—not health.
Who Is Guaranteed Issue Life Insurance Designed For?
This coverage is often suitable for individuals who:
• Have pre-existing medical conditions
• Have been declined for traditional life insurance
• Are managing chronic illness
• Are older and concerned about insurability
• Want basic coverage without medical underwriting
• Need coverage for final expenses
• Want to leave something behind for family or beneficiaries
Guaranteed issue insurance ensures that life insurance remains accessible—even when other options are no longer available.
What Does Guaranteed Issue Life Insurance Cover?
Guaranteed issue policies are typically used to cover:
• Funeral and burial expenses
• Outstanding debts
• Medical or end-of-life costs
• Final taxes
• Small estate needs
• A modest legacy for loved ones
Coverage amounts are usually lower than traditional life insurance, commonly ranging from $5,000 to $50,000, depending on the insurer.
Key Features to Understand
1. No Medical Underwriting
There are no health questions, exams, or lab tests. This is the main advantage of guaranteed issue coverage.
2. Lifetime Protection
As long as premiums are paid, coverage stays in force for life.
3. Fixed Premiums
Premiums typically remain level and do not increase with age.
4. Tax-Free Death Benefit
The benefit is paid directly to beneficiaries, usually tax-free.
The Waiting Period (Very Important)
Most guaranteed issue life insurance policies include a waiting period, typically:
• 2 years from the policy start date
If death occurs during this period due to natural causes, the insurer usually refunds premiums paid (sometimes with interest), rather than paying the full death benefit.
Accidental death is often covered immediately.
Understanding this feature is critical, and we always review it carefully with clients before moving forward.
Guaranteed Issue vs Simplified Issue Life Insurance
| Guaranteed Issue | Simplified Issue |
|---|---|
| No health questions | Limited health questions |
| Guaranteed approval | Approval depends on answers |
| Lower coverage amounts | Higher coverage possible |
| Waiting period applies | Often no waiting period |
| Higher cost per dollar | Lower cost than guaranteed issue |
In many cases, simplified issue insurance may be a better option if eligibility allows. We help determine the most suitable choice.
Cost Considerations
Because insurers take on higher risk, guaranteed issue policies:
• Have higher premiums per dollar of coverage
• Offer lower maximum coverage amounts
• Are best used for specific, essential needs
This type of insurance is not designed for income replacement or large estate planning—it is designed for accessibility and certainty.
Who Should Consider Guaranteed Issue Coverage Carefully?
Guaranteed issue insurance is not ideal for:
• Young, healthy individuals
• People seeking large coverage amounts
• Long-term investment or wealth strategies
If other insurance options are available, they are often more cost-effective. That’s why a proper review matters.
Our Role as an Independent Advisory Firm
We help clients:
• Understand whether guaranteed issue is appropriate
• Compare guaranteed issue vs simplified options
• Review waiting periods and exclusions
• Compare insurers and pricing
• Set realistic expectations
• Coordinate coverage with estate and financial planning
• Ensure compliance with AMF (Quebec) and FSRA (Ontario) guidelines
Our approach is transparent and educational—never rushed.
Peace of Mind When Options Are Limited
Guaranteed Issue Life Insurance provides certainty when other doors may be closed. It ensures that final expenses are covered and that loved ones are not left with unexpected financial burdens.
If you or a family member have concerns about health, age, or past declines, there may still be solutions worth exploring.
Book a consultation with us to review guaranteed issue life insurance options and determine the right coverage for your situation.
