Simplified Life Insurance in Canada

compare life insurance quotes from 30+ companies in Ontario


  • life-insurance-quotes

For some people, getting life insurance can be tricky. First, you have to take a medical exam. Then, you have to answer sometimes invasive questions about your health and lifestyle. And then, after all that, you still have to be evaluated and possibly rejected. Wouldn’t it be better if you could just get life insurance, no questions asked? After all, if you wanted it and are capable of paying for it, why can’t you have it?

The good news is, you can. Simplified issue life insurance makes insurance more attainable for anyone. Different companies offer different plans, with different requirements, but they all have the same general offers. In a nutshell, if you are looking for a quick and easy application with little to no fuss, this one could be for you.

What is Simple Issue Life Insurance?

Simplified issue life insurance refers to insurance that does not come with a lot of requirements. In most cases, you can apply for it online. Insurance companies do not ask for medical records or inquire further into your lifestyle. As such, it is great for people that have already been rejected by other insurance companies due to health reasons. It is also great for people who engage in dangerous activities. This can range from extreme sports to high-risk jobs. Finally, it could also be for people who are perfectly healthy and safe but do not have the time or patience to go through with the whole process.

Is There A Medical Exam?

One of the greatest advantages of simplified life insurance is that it does not require a medical exam. That said, applicants still need to answer a few health-related questions in order to qualify. These questions are usually very broad. You will not be asked about unhealthy habits or your detailed medical history. Most insurance companies just ask two to three questions to determine your eligibility. Answering no to all the questions guarantees approval. Questions can include the following:

  • Are you terminally ill, with 24 months or less to live?
  • Have you had treatments for heart, blood, and brain disorders (among others) in the past 3 years?

Whatever the questions, what insurers are looking for is that you answer ‘no’ to all their questions.

smoker

What Is Simplified Term?

Term insurance is coverage for only a specified length of time. Insurance companies usually sell term insurance in 10, 20, or 30-year periods. If you get simplified term insurance, you still do not have to undergo a medical exam or answer extensive health questions. The process of applying is still as easy. It is still the exact same process as applying to any other simplified life insurance. If at the end of the term, you want to extend your coverage, all you have to do is renew. Just remember that your premium is age-based. As such, when you renew your term insurance after 10 or 20 years, your premium could be much, much higher. This is because you are more at risk of making a claim as you get older.

Can I Get Coverage for Life?

Some insurance companies offer simplified issue insurance that lasts a lifetime. If you do not want to keep renewing every few years, this is probably the best option for you. One of the advantages of a life-long coverage is that your premium will never change. Even when you get old or if you get sick, you will still be paying the same amount as when you started. At the same time, the amount of your coverage will not decrease over time either. Thus, if you want to get covered but do not want all the fuss, this is a great alternative.

What Are the Benefits?

The basic benefits you get from simplified life insurance may vary. One of the more common benefits you will find is a death benefit. This entitles your beneficiary to the full amount of your coverage upon your death. Other companies offer an optional accidental death benefit as well. In this case, your beneficiary can get up to five times the amount of your coverage. In both cases, it is tax-free. Most insurers also offer a living benefit. This means that if you are diagnosed with a terminal illness, you can get an advance on your coverage. Some companies give up to 50%, while others give up to 75%. Some insurance companies also include the costs of hospitalization. Others meanwhile include final costs for funerals and debts.

What Are the Drawbacks?

Getting a simplified life insurance may be easy, but its main disadvantage is the cost. Premiums for this type of insurance are usually high. This is because it is a broad amount that is not specific to you. Age group usually dictates the rate of premium. If your age group is considered high-risk, then there is a good chance you will pay higher for your insurance. This becomes an even bigger issue if you decide to renew after your first term. In addition, the coverage will not be tailored to your needs. If you get sick, your coverage may not include medical bills. As such, you may end up paying even more.

Conclusion

Simplified life insurance is a quick and easy way to get extra security. All it takes is answering a few broad health questions. There are no in-depth health inquiries either or medical exams. It is also very convenient because you can apply online. You also have the choice of purchasing simplified life insurance as a lifelong coverage or as a term coverage. A lifelong coverage means you have security for life. This also means you can pay the same premium and get the same amount of coverage, no matter what happens. On the other hand, term insurance ends after a certain period. At the end of this period, you can opt to renew. When you renew, however, your premium is most likely to increase due to your age.

Simplified life insurance comes with basic benefits. This includes a living benefit and a tax-free death benefit. There are also additional benefits depending on the insurance company. These can include accidental death benefits and coverage for medical expenses.

In the end, simplified life insurance is ideal for people who are a challenge to insure. People with high-risk lifestyles or previous rejections can benefit most from it. People who want insurance coverage but not want all the fuss would like this option as well. However, perfectly healthy people who do not mind undergoing intensive medical exams can benefit more from a  tailored coverage.

Resources:

https://www.cpp.ca/no-medical-simplified-issue-life-insurance/no-medical-simplified-elite-t100-permanent-life-insurance/
https://www.sunlife.ca/ca/Insurance/Life+insurance/Term+life+insurance/Sun+Life+Go+Simplified+Term+Life+Insurance
http://www.coverme.com/products/coverme-easy-issue-life.jsp

Related