When it comes to choosing no medical life insurance in Canada, it's important to understand the different types on the open market. This includes figuring out the pros and cons of each option and which one to go with moving forward.
Canadians often don't know that life insurance is not going to always come with a medical life insurance exam.
There are different types of no-medical life insurance. These are Guaranteed Issue, Accelerated Issue, and Simplified Issue.
There are specific pros and cons for each option, and that is why it becomes important to compare these insurance options before deciding one way or the other.
It's going to come down to choosing between - Accelerated Issue Life Insurance, Simplified Issue Life Insurance, and Guaranteed Issue Life Insurance.
In general, there is a six-week waiting period when it's time to move forward with an underwritten life insurance policy. The average person is not going to have the time to wait six weeks, and that is what becomes frustrating over time. It's important to account for this when it is time to get fast approval. It's important to start with accelerated issue life insurance.
This is known for offering instant approval, and it comes with the same rates as a traditional life insurance policy.
So, what is the issue, then? The issue is you will need to be healthy at the time of signing up. Otherwise, you will be required to take the medical life insurance exam.
The way this life insurance type is handled starts with a simple risk assessment. All you are going to have to answer will be making sure to fill out specific health questions.
Life insurance policies will ask for this information along with other relevant data, such as your driving history. The results will often dictate whether or not you are going to require a medical exam to move forward. If everything is good with the answers, you will not have to move forward with the exam.
This is a different type of life insurance because you can get approved regardless of your health. This is why it's "guaranteed". In general, there is no medical life insurance exam with this policy, and many will not ask medical questions at all. It is as simple as it gets.
The issue comes when it is time to pay the rate for the policy. You are going to pay a lot more to balance out the risk that the insurance provider is taking. It is important to understand there is a give and take when it comes to this option, but it will offer instant approval.
It is important to note that there is a waiting period with this insurance policy. While you are going to get approved, you will be made to wait at least two years. This means you are going to have to wait at least two years before anything is paid out to the family, assuming a person has passed away. If the person passes away before the two-year mark, your family will receive only the dollars that were paid for the policy.
Many Canada Protection Plans reviews have highlighted this as a good policy for those who are older or unhealthy or have been rejected by other insurers. It is always recommended to speak to an insurance broker to learn more about your options.
Simplified issue life insurance is focused on continued protection. This is not the same as permanent life insurance. This is only going to provide simple coverage, and it is not going to grow in cash value.
You will not be required to move forward with a medical exam. However, you will need to answer a few questions. It is still possible to be rejected. The rates are going to be higher with this type of policy in comparison to a fully underwritten option.
This policy is going to also have a waiting period. This is going to be two years long. The waiting period means the funds will only go to the family after the two-year mark. If you pass away within two years, the insurer is not liable to pay. Instead, they will only pay the dollars that were put into the policy.
This is good for those who can't seem to get approval for the life insurance policy but are still healthy right now.
It is important to know there will be a waiting period with some policies. This is going to be up to two years. This is aimed at making sure the risk is spread out for the insurer, especially if the person has a serious health condition.
The family is not going to receive the benefit that comes with the policy if the waiting period is not ever. All that is going to be given back is the premium that you are owed.
It is going to come down to the questions that are answered. There will be questions about simplified life insurance. They will be able to turn down the application for anyone that is in bad health. Guaranteed life insurance is not going to do this, and it won't have any questions.
Simplified life insurance will offer complete coverage and is going to be cost-efficient compared to guaranteed life insurance.
These are the types of no-medical exam life insurance. Each one has advantages and disadvantages. It is essential to choose the one that works for you and is going to offer complete coverage.
Choose the one that works for you after doing your research. Take your time and make sure you decide what works for your situation.