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Looking for life insurance but worried your health history might stand in the way?
Guaranteed issue life insurance could be the solution you’ve been searching for. Designed for people who’ve been turned down for traditional coverage or want to skip the medical exam altogether, this type of policy offers peace of mind by ensuring you can still leave behind financial support for your loved ones.
Whether you have a chronic condition, a complicated medical history, or just want hassle-free coverage, guaranteed issue life insurance gives you access to protection—no questions asked.
In this guide, we’ll break down guaranteed issue life insurance in Canada—how it works, who it’s best suited for, and what to consider when selecting the right policy.
- Key takeaways:
- Guaranteed issue life insurance offers coverage without medical exams or health questions, making it ideal for people with serious health conditions or high-risk lifestyles.
- Coverage is typically permanent and provides peace of mind by ensuring your loved ones receive a tax-free death benefit to cover final expenses or other financial needs.
- Premiums are higher compared to fully underwritten or simplified issue policies, due to the lack of health screening and higher risk for insurers.
- There is a two-year waiting period for death due to illness, during which only premiums are refunded if you pass away from a non-accidental cause.
What Is Guaranteed Issue Life Insurance?
Guaranteed issue life insurance is a type of life insurance policy that offers coverage without any medical exams or health questions. As with any life insurance contract, when you purchase a guaranteed issue policy, you agree to pay a regular premium. In exchange, the insurance company promises to pay a death benefit to your beneficiaries when you pass away.
Because approval is automatic, this type of policy is often called guaranteed acceptance life insurance or simply guaranteed life insurance. It’s designed for individuals who may not qualify for other types of coverage due to age, health conditions, or lifestyle factors.
You may also hear it referred to as final expense insurance, funeral insurance, or burial insurance. These terms reflect one of its most common uses: covering the cost of end-of-life expenses. However, the death benefit from a guaranteed issue policy can be used for a wide range of purposes beyond just funeral costs:
- Paying for final expenses: In Canada, the average cost of a funeral ranges from $5,000 to $15,000, depending on the type of service and whether cremation or burial is chosen. Since guaranteed issue policies typically offer coverage amounts in this range, they can be ideal for ensuring your loved ones aren’t burdened with these expenses.
- Paying off outstanding debts: Small debts such as credit card balances or personal loans can add stress for your family. A guaranteed issue policy can provide the funds needed to settle these financial obligations quickly.
- Providing income replacement: While these policies don’t offer large coverage amounts, the death benefit could offer your family a short-term financial cushion—perhaps covering 1 to 2 years of basic living expenses during a difficult transition.
- Leaving an inheritance: If you don’t have other assets to pass down, a guaranteed issue policy offers a way to leave a small legacy to your children or grandchildren.
- Covering medical bills: If you’ve incurred hospital or medical costs before your passing, the death benefit can help ease the financial impact on your loved ones.
- Estate planning basics: The funds can help your executor pay for basic administrative costs involved in settling your estate, such as legal fees or probate costs.
- Gifting to charity: You can name a charity as your beneficiary, allowing you to make a small but meaningful final donation.
- Supplementing other insurance: A guaranteed issue policy can serve as an additional layer of financial support if your existing coverage isn’t enough.
- Providing financial security for dependents with special needs: The death benefit can offer long-term support for a child or adult dependent who relies on you financially.
While the coverage amount is modest compared to traditional life insurance, guaranteed issue policies serve an important role for those who are otherwise uninsurable. They ensure that your family isn’t left with unexpected expenses and give you the peace of mind that you’ll still be able to provide for them in some way.
How does guaranteed issue life insurance work?
There are two main features that define how guaranteed issue life insurance works:
- No medical exams or health questions: When you apply for a guaranteed issue policy, there are no medical exams, no health questionnaires, and no lifestyle disclosures required. That’s because approval is guaranteed—regardless of your age, health status, or medical history.
- Two-year waiting period: Guaranteed issue policies include a two-year waiting period. If you pass away from a non-accidental cause during this period, your beneficiaries will receive a refund of the premiums you paid, plus interest—but not the full death benefit. However, if your death is the result of an accident, the full benefit will still be paid out, even within the waiting period.
Guaranteed issue life insurance vs fully underwritten life insurance
When you’re shopping for life insurance, one of the most important decisions you’ll make is choosing the right type of policy. Guaranteed issue life insurance and fully underwritten life insurance sit at opposite ends of the underwriting spectrum—each designed for different needs and situations.
A fully underwritten life insurance policy is the traditional route most Canadians take if they’re in good health. To apply, you’ll be required to complete a detailed medical and lifestyle questionnaire. This may include questions about your current health, medical history, family history, occupation, hobbies, travel plans, and more. You may also need to undergo a medical exam, which could involve:
- Blood and urine tests
- Height and weight measurements
- Blood pressure readings
If you have pre-existing medical conditions or are taking medications, the insurer may also request medical records from your family doctor.
While this process can take a few weeks to over a month, it has a major upside: lower premiums. If you’re in good or even average health, fully underwritten life insurance is usually the most affordable way to get coverage—with much higher coverage limits compared to guaranteed issue policies.
On the other hand, guaranteed issue life insurance skips all of that. There are no medical exams, no health questions, and no doctor’s reports. Approval is guaranteed regardless of your health status. All the insurance company knows about you is your age, gender, and smoking status. From their perspective, you could be in perfect health—or terminally ill.
Because the insurer has no way to assess your risk, they take extra steps to protect themselves:
- Two-year waiting period: As discussed in the previous section, if you pass away from a non-accidental cause within the first two years, your beneficiaries will receive a refund of your premiums plus interest—but not the full death benefit.
- Higher premiums: Without health data, the insurer assumes higher risk and charges significantly more for the same amount of coverage.
- Lower coverage limits: Most insurers cap guaranteed issue policies at $50,000 or less to limit their exposure.
If your main goal is to skip the medical exam but you’re comfortable answering a few basic yes-or-no health questions, simplified issue life insurance may be a better option. Like guaranteed issue, it falls under the category of no medical life insurance—but because it involves some basic health screening, it typically offers higher coverage amounts and lower premiums for those in relatively stable health.
Here’s a quick comparison of the three main types of life insurance in Canada:
Simplified issue life insurance | Guaranteed issue life insurance | Fully underwritten life insurance | |
|---|---|---|---|
Plan types available | Term and permanent | Term and permanent | Term and permanent |
Cost | Moderate | Highest | Lowest |
Maximum coverage amount | $750,000 | $100,000 | Over $5,000,000 |
Medical exam | No | No | Sometimes |
Medical and lifestyle questions | Yes | No | Yes |
Doctor’s report | No | No | Sometimes |
Guaranteed acceptance | No | Yes | No |
Speed of approval | Instant to a few days | Instant | A few days to over a month |
Waiting period | None | Two years for non-accidental death | None |
Ultimately, your choice depends on your health, age, and insurance needs. If you’re in good health, a fully underwritten policy offers the best value in terms of coverage and cost.
But if you’ve been declined before or have serious health issues, guaranteed issue life insurance can still provide meaningful support for your loved ones—especially when no other options are available.
Who should consider guaranteed issue life insurance?
Guaranteed issue life insurance can be a lifeline for individuals who face significant barriers to getting traditional life insurance. While it may not be the best choice for everyone, there are several groups of people for whom this type of coverage can make a meaningful difference. Here’s who should seriously consider guaranteed issue life insurance:
✅ Individuals with significant pre-existing health conditions
If you’ve been diagnosed with serious medical conditions like heart disease, cancer, COPD, diabetes, or other chronic illnesses—especially within the past few years—you may have trouble qualifying for fully underwritten or even simplified issue life insurance.
Insurance companies see recent health scares as higher risk because they want to ensure your condition is stable over a longer period before offering coverage. The more time that has passed since your diagnosis or treatment without complications, the more likely you are to qualify for better rates or approval.
✅ Seniors with health concerns
As you get older, it’s natural for health complications to increase. If you’re a senior with existing medical issues and no life insurance coverage in place, a guaranteed issue policy can give you peace of mind.
✅ Those previously declined for life insurance
Have you applied for life insurance in the past and been denied due to health or lifestyle issues? Guaranteed issue life insurance provides you with a second chance. Approval is guaranteed, as long as you fall within the insurer’s eligible age range, regardless of your health status.
✅ Individuals seeking simplicity and speed
Not everyone wants to go through the traditional life insurance application process, which can include long forms, nurse visits, and weeks of waiting. If you prefer a fast, no-hassle option, guaranteed issue life insurance offers quick approval—often instantly.
✅ People concerned with covering final expenses
If your main goal is to pay for funeral costs or other small end-of-life expenses, a guaranteed issue policy can be a practical solution. The modest death benefit—usually between $5,000 and $25,000—can be just enough to handle funeral costs. This ensures that your family won’t have to dip into their own savings or take on debt during an emotionally difficult time.
✅ Those who have waited until later in life to seek coverage
Some people don’t think about life insurance until they reach their 60s, 70s, or even later. By that time, qualifying for traditional insurance can be very difficult. If this sounds like you, guaranteed issue life insurance provides a viable backup plan to still secure some form of protection.
✅ Newcomers to Canada
If you’re a recent immigrant or temporary resident who may not yet be eligible for fully underwritten life insurance policies, guaranteed issue life insurance can offer a way to get covered sooner. Some insurers accept applications from newcomers who meet basic residency requirements, even if they haven’t yet established a long medical history in Canada.
Pros and cons of guaranteed issue life insurance
Like any financial product, guaranteed acceptance life insurance comes with both advantages and drawbacks. Understanding the pros and cons can help you decide if this type of policy is the right fit for your needs and goals.
- Pros:
- Guaranteed acceptance: Automatic approval regardless of health.
- No medical exams or questions: The application process is as simple as it gets.
- Instant approval: You can often get approved immediately or within minutes, whereas traditional life insurance can take weeks—or even months—due to medical underwriting.
- Option for the uninsurable: Provides coverage when other types are unavailable.
- Permanent coverage available: Coverage for life as long as premiums are paid.
- Predictable premiums: Your premiums are fixed and guaranteed for life. That means no surprise increases due to your age or health changes down the road.
- Portability: Coverage stays in place no matter where you move, whether it's within Canada or abroad.
- Potential for cash value growth: Some guaranteed issue whole life policies build cash value over time, which you can borrow against or withdraw in emergencies.
- Peace of mind for loved ones: Even a small policy can ease the financial burden on your family, helping to cover funeral costs or small debts—so your loved ones aren’t left scrambling during a difficult time.
- Easy to understand: These policies are straightforward, with fewer moving parts than many other types of insurance. You don’t need to be a financial expert to understand what you’re buying.
- Cons:
- Higher premiums: Costs are significantly higher than traditional or simplified issue policies.
- Lower coverage limits: Coverage is often capped at $50,000, which may not be enough to cover large liabilities like the mortgage or providing income replacement.
- Waiting period: Only the premiums are returned if you die from an illness during the first two years.
- Fewer rider options: You won’t be able to add riders like disability waiver of premium that are common in underwritten policies.
- Permanent insurance only: Guaranteed issue policies are usually whole life only, which might not align with your short-term insurance needs or affordability goals.
- Poor value for healthy individuals: If you’re relatively healthy, you can qualify for better and more affordable options with simplified or fully underwritten coverage.
- No joint life insurance: Joint coverage offers coordinated planning for shared financial goals like paying off a mortgage or covering final expenses.
How much does guaranteed issue life insurance cost?
When evaluating your life insurance options, cost is a key factor—especially if you’re deciding between guaranteed issue and fully underwritten life insurance. Guaranteed issue life insurance is known for its ease of approval, but that simplicity comes at a price.
To give you a clearer picture, let’s look at a comparison of monthly premiums for a $25,000 whole life insurance policy with guaranteed premiums for life. These policies are also considered “paid up” at age 100, meaning once you hit that age, you no longer need to make payments, but your coverage remains in force.
Age | Guaranteed issue | Fully underwritten | ||
|---|---|---|---|---|
Male non-smoker | Female non-smoker | Male non-smoker | Female non-smoker | |
50 | $95 | $77 | $45 | $39 |
55 | $128 | $99 | $56 | $47 |
60 | $170 | $127 | $72 | $63 |
65 | $221 | $170 | $97 | $85 |
70 | $332 | $234 | $128 | $118 |
75 | $447 | $324 | $171 | $149 |
80 | $702 | $469 | $281 | $221 |
Here are some key takeaways from the cost comparison:
1. Guaranteed acceptance life insurance costs more
As shown in the table, guaranteed issue premiums are significantly higher than those for fully underwritten policies. This is because insurers take on more risk by not asking for any medical information. They price accordingly to protect themselves from insuring individuals who may already be in poor health.
2. Fully underwritten offers better value—if you qualify
The fully underwritten life insurance rates assume you are in average health with no major medical or lifestyle concerns. If that’s you, fully underwritten policies are almost always the better value—sometimes costing less than half of what guaranteed issue premiums would be for the same coverage.
If you have serious health issues—such as a recent cancer diagnosis, heart condition, or uncontrolled diabetes—you may be declined for fully underwritten coverage or charged a significantly higher rate. In those cases, guaranteed issue life insurance could be your only option.
3. You won’t know your underwritten rate until you apply
One downside of fully underwritten life insurance is that you don’t know your final rate upfront. You’ll need to complete a medical questionnaire, and possibly a medical exam and a doctor’s report. It can take several weeks to get an answer.
4. Hidden value: cash accumulation
Although not reflected in the table, both types of whole life insurance typically build cash value over time, which you can borrow against or withdraw later. However, fully underwritten policies tend to accumulate more cash value thanks to their lower cost structure.
Choosing the right life insurance policy is not always straightforward—especially if you’re unsure how your health history will affect your insurability. A licensed insurance advisor can help by offering a preliminary health assessment and guiding you toward the best option based on your unique situation.
You may discover that you qualify for simplified or fully underwritten life insurance at lower rates, or you may confirm that guaranteed issue is the most realistic path forward. Either way, you’ll be making an informed choice that suits both your needs and your budget.
Top Canadian Insurance Providers Offering Guaranteed Issue Life Insurance
With so many insurance companies offering guaranteed issue life insurance, you have plenty of options—but that also means it can be hard to know where to start. Choosing the right provider isn’t just about who offers coverage; it’s about finding a company that fits your needs, budget, and expectations for convenience and flexibility.
What to look for in a guaranteed issue life insurance provider
Here are the key features you should consider when comparing providers:
High coverage limits: Look for policies that offer up to $100,000 in coverage, which can help pay for more than just funeral expenses—such as settling debts, covering final medical bills, or providing short-term financial support for your loved ones.
Affordable rates: Although guaranteed issue premiums are higher than fully underwritten ones, rates still vary significantly between insurers. Comparing quotes helps you get the best value for your money.
Brand recognition and financial stability: Choose a provider with a strong reputation and solid financial ratings (such as an A or better from A.M. Best). This ensures your insurer will be around—and able to pay—when your family needs the benefit.
Cash value accumulation: Some guaranteed issue policies build cash value over time, offering you access to funds in an emergency without surrendering your coverage.
Flexible payment options: Look for insurers that support multiple payment methods, like credit cards, pre-authorized debits, and online banking. This flexibility makes it easier to keep your policy active.
Ease of application: Guaranteed acceptance should also mean quick and hassle-free. Ideally, the application can be completed online in 30 minutes or less, with instant approval available for many applicants.
Best all around: Canada Protection Plan
As one of the pioneers of simplified and guaranteed issue life insurance in Canada, Canada Protection Plan (CPP) has built a strong reputation for accessible and well-rounded products.
- Pros:
- Competitive rates for a wide range of health profiles.
- Built-in benefits like transportation of remains and terminal illness payouts at no extra cost.
- Guaranteed cash value starts building after the fifth policy year.
- Cons:
- Maximum death benefit of $50,000, which is lower than some other providers.
- Coverage only available up to age 75, which excludes older seniors.
Best guaranteed issue life insurance for seniors: Assumption Life
If you’re a senior or helping a parent or grandparent find coverage, Assumption Life offers some of the best options for older applicants with its high eligibility age and flexible policy features.
- Pros:
- Accepts applicants up to age 80—one of the highest limits in the market.
- Offers low coverage minimums starting at $5,000, making it budget-friendly.
- Guaranteed cash value builds after year five.
- Option for reduced paid-up insurance, allowing you to stop paying premiums in exchange for a smaller, permanent benefit.
- Cons:
- Fewer included benefits compared to other companies.
- Lower maximum coverage than competitors—more suitable for modest insurance needs.
Best guaranteed issue life insurance for younger individuals: Industrial Alliance
While many insurance companies offer coverage to those under 50, 40, or even under 30, Industrial Alliance (iA Financial Group) is unique in offering guaranteed issue coverage for children as young as 6 months old. This makes it an excellent choice for families with children who have health conditions that would disqualify them from traditional life insurance.
- Pros:
- Coverage starts at 6 months old, rare among Canadian providers.
- Cash value starts accumulating in the fifth year.
- Instant approval, so you get immediate peace of mind.
- Cons:
- For children, only $10,000 of coverage is available—suitable mostly for final expenses.
- Adults aged 51–75 can only get up to $25,000 in coverage, which is lower than many competitors.
- If the parents have a life insurance policy with a child rider, a standalone policy may be unnecessary.
Best guaranteed issue term life insurance: Humania
Humania is currently the only insurance provider in Canada offering guaranteed issue term life insurance—a rare option in the industry. While most guaranteed issue products are permanent life insurance policies, Humania gives you the flexibility to choose term coverage without answering any medical questions.
- Pros:
- Offers 10- or 20-year term lengths, ideal for covering temporary needs like debt repayment or providing income replacement for your family.
- Convertible to a permanent policy later on, allowing you to maintain lifelong coverage for final expenses as you age.
- Coverage available up to $100,000, the highest death benefit in the industry for guaranteed issue policies.
- Can be bundled with critical illness and disability insurance under one contract, simplifying policy management.
- Cons:
- Premiums increase significantly once the initial 10- or 20-year term ends, which may impact affordability in the long run.
- You may be able to secure lower premiums for term coverage through mortgage life insurance or a group plan offered by your employer—if you’re eligible.
Comparison of guaranteed issue life insurance plans in Canada
Here’s a comparison table of guaranteed issue life insurance products available from various Canadian insurance providers:
Insurance company | Age eligibility | Number of health and lifestyle questions | Coverage limits | Cash value | How to purchase |
|---|---|---|---|---|---|
Assumption Life | 18 to 80 | 0 | $5,000 to $50,000 | Guaranteed cash surrender value starting after year 5 | Through a licensed insurance advisor |
Beneva | 18 to 80 | 1 | $10,000 to $50,000 | No | Through a licensed insurance advisor |
Canada Protection Plan | 18 to 75 | 0 | $5,000 to $50,000 | Guaranteed cash surrender value starting after year 5 | Directly from the insurance provider or through a licensed insurance advisor |
Edge Benefits | 18 to 69 | 0 | $5,000 to $50,000 | No | Directly from the insurance provider or through a licensed insurance advisor |
Empire Life | 40 to 75 | 0 | $5,000 to $50,000 | Guaranteed cash surrender value at the 5th policy anniversary | Through a licensed insurance advisor |
Humania | 18 to 70 | 0 | $5,000 to $100,000 | No | Through a licensed insurance advisor |
Industrial Alliance | 6 months to 80 | 0 | $10,000 to $50,000 | Guaranteed cash surrender value at the 5th policy anniversary | Through a licensed insurance advisor |
Manulife CoverMe | 40 to 75 | 0 | $5,000 to $25,000 | No | Directly from the insurance provider |
Manulife Guaranteed Issue | 18 to 75 | 0 | $10,000 to $100,000 | No | Through a licensed insurance advisor |
RBC Insurance | 40 to 75 | 0 | $5,000 to $40,000 | No | Directly from the insurance provider |
Sun Life | 30 to 74 | 0 | $5,000 to $25,000 | No | Directly from the insurance provider |
TD Insurance | 50 to 75 | 0 | $5,000 to $25,000 | No | Directly from the insurance provider |
How to apply for guaranteed issue life insurance
The application process for guaranteed issue life insurance is among the simplest—no medical exams, no health questions, and approval is often instant. When you break it down into clear, manageable steps, it becomes easy to apply with confidence and peace of mind.
1. Figure out how much coverage you need
Guaranteed issue life insurance is often purchased to cover final expenses. To estimate the right amount of coverage, consider the average cost of a funeral in Canada, which ranges from $7,000 to $15,000, depending on your province.
If you’re opting for cremation, costs can be lower—typically between $3,000 and $6,000. You may also want to factor in any outstanding debts or additional expenses you’d like covered.
2. Understand your health and lifestyle profile
While guaranteed issue policies don’t require you to disclose health details, it’s still helpful to understand your own health and lifestyle. If you have manageable or moderate health conditions and are otherwise in fair shape, you might qualify for a simplified issue or even a fully underwritten policy at a much lower cost.
A licensed insurance advisor can help you assess whether guaranteed issue is truly your best option or if another type of policy could save you money and offer better coverage.
3. Compare pricing
Not all guaranteed issue policies are created equal. Monthly premiums can vary significantly between providers for the same death benefit. Comparing multiple quotes is a smart way to make sure you’re getting the best value based on your age, gender, and smoking status.
Some insurers may also include added benefits—like terminal illness payouts or transportation coverage—which could enhance the value of the policy.
4. Submit your application
Once you’ve chosen the policy that fits your needs and budget, it’s time to apply. Since you skip the medical exam and health questionnaire, most guaranteed issue life insurance applications are quick and easy.
You can usually apply with the help of a licensed insurance advisor, but many companies also offer the option to apply directly online. In most cases, your coverage will be approved instantly and go into effect as soon as the first premium is paid.
Frequently Asked Questions
No, you can’t be denied guaranteed issue life insurance since acceptance is guaranteed without medical questions. However, you may be ineligible if you fall outside the insurer’s age range, usually 18 to 75.
No, a medical exam is not required. Because it also has no health questions and offers guaranteed approval, it’s ideal for those with serious medical conditions or high-risk lifestyles who may not qualify for other types of coverage.
Most guaranteed issue life insurance policies offer coverage amounts between $5,000 and $50,000. This amount is typically enough to cover funeral costs and some additional final expenses.
Premiums are higher because the insurer takes on more risk by accepting applicants without knowing their health status. To compensate, they charge more and cap the coverage.
Guaranteed issue life insurance policies have a two-year waiting period for non-accidental deaths. If you die from an illness during that time, only your premiums are refunded.
If you die from an accident during the waiting period, your beneficiaries will receive the full death benefit immediately. The waiting period only applies to non-accidental deaths.
Yes, many guaranteed issue policies build cash value over time. This can be accessed through policy loans or withdrawals. Cash value typically grows slowly and starts accumulating after a few years.
Yes, you can buy multiple guaranteed issue policies from different insurers. However, each insurer typically limits your coverage to a maximum of $50,000.
No, it’s usually best for those who are uninsurable through traditional means. If you’re in average health, a simplified or fully underwritten policy is likely better since you can get more coverage for less money.
Is Guaranteed Issue Life Insurance Right for You?
Guaranteed issue life insurance can offer peace of mind when other coverage options are out of reach. It’s a valuable solution for those with serious health conditions, recent medical scares, or high-risk lifestyles who might be denied traditional policies. However, with higher premiums, lower coverage limits, and waiting periods, it’s important to consider whether this type of insurance is the most suitable option for your situation.
At Brian So Insurance, we help you navigate these choices with clarity. We assess your health and lifestyle to determine if guaranteed issue life insurance is your best option—or if you could qualify for a more affordable and comprehensive simplified issue or fully underwritten policy. We compare offerings across top insurance providers to ensure you get the best coverage for your needs.
But we don’t stop at just helping you buy a policy. We provide ongoing support to make sure your insurance continues to align with your evolving personal and financial circumstances. Whether you’re looking for a complete insurance solution—including term life, permanent life, disability, health & dental, or critical illness insurance—we can design a plan tailored to protect every aspect of your life.
Email us at info@briansoinsurance.com or call 604-928-1628 for a free, no-obligation consultation. Prefer convenience? Use the form below to request a personalized quote delivered directly to your inbox.
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While we make every effort to keep our site updated, please be aware that timely information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Brian So Insurance and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser. This post is a brief summary for indicative purposes only. It does not include all terms, conditions, limitations, exclusions, and other provisions of the policies described, some of which may be material to the policy selection. Please refer to the actual policy documents for complete details which can be provided upon request. In case of any discrepancy, the language in the actual policy documents will prevail. A.M. Best financial strength ratings displayed are not a warranty of a company’s financial strength and ability to meet its obligations to policyholders.
