Guaranteed life insurance is designed for individuals who have trouble qualifying for traditional life insurance plans due to major health problems or age.

What are the benefits to guaranteed life insurance?

Guaranteed life insurance is typically much easier to quality for and has a faster approval process. This is because

• No health questions, medical tests, or medical exams are required.
• You are guaranteed acceptance regardless of your health status (if you’re within the insurer’s eligible age range)

In most cases, guaranteed life insurance policies are permanent life insurance policies. This means they provide coverage for life.

The cost of this type of life insurance is typically higher than others because acceptance is guaranteed, however, the premium amounts remain the same and never increase.

Cost and coverage

The cost and coverage amount of a guaranteed life insurance policy varies depending on

• The life insurance provider,
• Your age, and
• Sometimes your gender and whether you are a smoker

Coverage amount is most often between $25,000 and $50,000.

How is the benefit paid out?

There are usually two components to a guaranteed life insurance policy:

• Death benefit: paid to your beneficiaries as a tax-free lump sum.
• Living benefits: in case of a severe and prolonged illness, cash advance and early payout options may be available

For more information on life insurance, contact an insurance provider or visit canada.ca.

								
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