In my last two articles about life insurance and critical illness insurance, I said that they are often underappreciated financial tools that can help a family in a time of tragedy. This month, I will take a closer look at a life insurance tool that, because perhaps of past marketing, is often thought of as coverage for final expenses. I am talking about simplified issue (also called no medical) and guaranteed issue life insurance.
We have all seen the commercials targeted at seniors, but these two types of life insurance fill an important niche beyond final expenses. For people who have been denied traditional life insurance due to health or lifestyle, these tools can provide important coverage and protection. Follow these links for an unbiased description of simplified issue and guaranteed issue life insurance.
While not having a medical or being guaranteed for coverage sound great, remember that the coverage amounts may be lower and the premiums higher than traditional insurance.
That being said, if you have a medical condition such as diabetes or a dangerous hobby or occupation, and you need life insurance to cover a debt or replace a salary (see April) these two types of insurance may provide an important solution for your family. It is worth having the discussion with an advisor that you trust.
Like critical illness and life insurance, simplified and guaranteed issue insurance is provided by most insurance companies in Canada. Not all policies are the same, however, so it is important to find coverage that works for your situation and is budget friendly.
By the way, simplified and guaranteed issue critical illness insurance is also available in Canada. Again, however, be diligent, talk to someone you trust, and make sure that the coverage is the right tool for you.
Feel free to comment or ask me any questions that you may have.