Compare Quotes
HomeLife Insurance ResourcesGuaranteed Life Insurance

Life insurance is something many people desire. It gives you and your loved ones extra financial security against whatever life throws your way. Unfortunately, many people think they do not qualify so they do not bother to apply. Traditionally, people with a history of illness or medical conditions have difficulty finding an insurance company that would cover them. If they do, it comes with so many conditions. It also costs more. This does not always have to be the case, though. Guaranteed life insurance is a great option for people who want insurance coverage but do not have the cleanest health record. It gives them a financial safety net against accidents, sudden death, or even terminal illnesses.

What Does Guaranteed Acceptance Mean?


Guaranteed acceptance is when you apply for life insurance and be accepted no matter what. It does not have any conditions that you must meet, except for an age requirement. Whether you have a medical condition, an unhealthy lifestyle, or any other issue, it is okay. You can still qualify for life insurance. Guaranteed acceptance is ideal for people who are a challenge to cover due to health reasons.

Is There a Requirement for Medical Exam?

If you are applying for guaranteed life insurance, you do not need to get a medical exam. There will be no health-related questions in your application form either. One of the great things about guaranteed life insurance is that your medical history does not matter. As such, the insurance company does not need it.

Who Is Eligible?

People eligible for guaranteed life insurance include Canadian citizens, permanent residents, and landed immigrants who have been living in Canada for at least two years. However, the minimum age of requirement varies from insurer to insurer. Some accept anyone between 40 to 75 years old. Others, meanwhile, raise it up to at least 50 years old or lower it down to 30. Those who are over 75 years old are no longer eligible to apply.

What Is the Coverage?

There are different coverage levels for guaranteed life insurance. Your coverage could be anywhere from $5000 to $25000. This means you could be paying as low as $20 per month for the basic coverage. Another great thing about guaranteed life insurance is that the rate you pay for the premium would not increase over the years. At the same time, your coverage does not decrease over time either. This means that even after 20 years of paying, you would still be shelling out the same amount of money.

What Are the Benefits?

Guaranteed life insurance comes with many benefits. While different insurers throw in different add-ons, most have the same basic features. These include the following:

Lifetime Coverage

Lifetime coverage is yours as long as you pay your premiums. And when you reach 95 years old, you qualify for life insurance for free. You do not have to pay monthly premiums anymore while still enjoying the full coverage. This is not affected by newly developed medical conditions either. Even if you get sick, your premium and coverage would stay the same.

Tax-free Death Benefit

In the event of your passing, your beneficiaries would receive the amount of your coverage tax-free. In other words, they would get the total amount of what you have been paying for, without deductions. They would also be free to use this amount as they please. They could use it for funeral costs, additional expenses, debt, loans, or something completely different – it is up to them.

Accidental Death Benefit

The accidental death benefit entitles your beneficiaries to 5 times your coverage.  This is applicable if you die due to an accident before the age of 85. This means that if you were covered for $25000, your beneficiaries could get as much as $125000 from your guaranteed life insurance.

Living Benefit

The living benefit is for people who are diagnosed with a terminal illness and were given only 12 months or less to live. This is what insurers call a compassionate advance. This entitles you to get 50% of your total coverage while you are still alive.


What differentiates the insurers from each other is the extras they add to the coverage. For instance, some insurers could give the living benefit even if the client has 24 months to live rather than 12. Some have partnerships with other companies and hand out discounts and promos. Promos could include air miles, opt-out schedules, and the like.

Are There Exclusions?

If you are planning to get guaranteed life insurance coverage, it helps to know the exclusions. By knowing which situations might not have you covered, you would know to avoid them. For instance, a suicide or a death caused by illness would not qualify you to get the amount of the coverage if it happens within the first 2 years. Instead, you would only be refunded the premiums you have already paid. Your policy could also be revoked if you provide fraudulent information or if there is any misrepresentation.


For people who might be a challenge to insure, guaranteed life insurance is a great alternative. For as low as $20 a month, you could get insurance coverage for life. The fact that the premium and coverage do not change amount over time makes a guaranteed life insurance coverage a great value for money as well. Apart from this, guaranteed life insurance has other benefits. This includes an accidental death benefit, living benefit, tax-free benefits, and up to 5 times of the coverage after an accidental death.

Leave A Comment

Continue Reading