This is a common kind of life insurance marketing tactic and you will see it advertised on the television. Several companies are in this market and often send out solicitation flyers and mailings. These kinds of insurance companies advertise that:

• “No one will call on you”
• “No medical is required”
• “Instant issue but only after answering medical questions”

If this sounds familiar, you may have seen several of these types of advertising by insurance marketing companies. The problem with this type of life insurance is that you will likely pay too much for your coverage just to avoid having to see a nurse and provide some blood work. We have also found that the questions on some of these applications are not that clear which may lead to claim denials and the person who completed the application is no longer around to argue at claim time.

Another aspect of some of these plans is the marketer is not the insurance company underwriting the coverage. At claim time when you call the marketer, you are told, you going to have to work it out with the insurance company, we are just the middleman. Make sure you know who you are dealing with before you buy.

Where guaranteed issue policies are of most value is when there are significant preexisting medical issues that prevent someone from qualifying for traditional life insurance. Then the extra costs are well worth it. However, make sure you are properly guided and that you understand the questions and answer them properly. We have been in life insurance business for a long time. We specialize in helping people find the most cost effective solution when it comes guaranteed issue products. Having some insurance is always appreciated by your loved ones compared to the alternative of having no life insurance at all.

Edge Benefits is considered a Third Party Administrator, focused on providing selected products like guaranteed issue life and critical illness insurance up to $25,000, underwritten by various insurance companies, e.g. their Final Expenses plan is underwritten by ACE INA Life Insurance Company. It is a guaranteed issue product and consequently no health questions are asked. Consequently, it has a two year deferral, during which time, if the insured passes, the premiums plus interest are simply refunded. The considerations are very basic as it is guaranteed issue. We have sold a number of policies with no issues as the application is very simple given there are no medical questions.

Product features

• Available from age 30 to age 85 in increments of $5,000 between $5,000 and $25,000
• Only available for Canadian citizens or a permanent residents (or landed immigrants) of Canada
• Not available if you are contemplating living permanently outside of Canada within the next 24 months, or are an airplane pilot of a non-commercial airline plane.
• Non-smokers are offered a discount

Wawanesa is seldom the cheapest but occasionally, we have people who would not qualify for other policies yet can answer “no” to these questions.

1. Within the last two years, have you had a stroke, heart attack or been advised to have heart surgery?
2. Within the last three years, have you consulted a physician for, or received treatment for cancer?
3. Within the last three years, have you been declined for individual life insurance by Wawanesa Life or any other insurer?
4. Have you been diagnosed, treated for, or had any indication of AIDS or AIDS related complex?
5. Are you currently restricted to a wheel chair, bedridden, hospitalized or confined to a nursing home?

The most unusual and best value for many is offered by Bingham Group Services. They have developed an absolutely unique life and disability creditor insurance protection plan to protect you and your family against a catastrophic life and/or disability event. It is a “guaranteed issue – no questions” product. You cannot be declined coverage. There is nothing else like it in Canada and they are selling thousands of policies. It is creditor insurance designed to pay off a debt like a mortgage in the event of your death. They payment goes to the creditor.

They are able to offer this coverage by having exclusions in their coverage and it is important that you understand these exclusions. However, if you are unable to purchase insurance due to medical issues, occupation, and dangerous hobbies like back country skiing, or you do not want to go through a medical then this is an excellent option.

Alternative is designed for people who have medical issues or do not want to do a medical or provide a doctor’s report. It is a two year deferred policy for people of age 6 months to 80 years which provides the youngest coverage for this type of product. It is also available in a 20 year term versions where the coverage ends after 20 years but is much more affordable. This could be used for covering part of a mortgage.

Product features (lifetime coverage)

• Payment doubles if death occurs due to an accident
• In first two years, payment is premiums paid plus an interest function unless death occurs as a result of an accident
• There is no discount for non-smokers which will result in a benefit for smokers as far as pricing is concerned.
• Available in amounts from $5,000 to $50,000 (20 year term policies available for $10,000 to $100,000)

Product variations

• Basic life insurance paid for over the term chosen
• Same as above but with a built in inflation protector so that the amount of life insurance increases by 3% per annum until it is double the initial face amount.
• Payment periods of 10, 20 or to age 85 depending on your age.

Qualifying questions

1. Currently capable of carrying out by himself/herself any basic activities of daily living such as: getting up, walking, washing, dressing, eating and is not suffering from incontinence;
2. The proposed insured is not under guardianship;
3. The proposed insured, if a child, is capable of carrying out by himself/herself all basic activities of daily living according to his (her) age;
4. The proposed insured is not currently admitted to a hospital, clinic or extended care facility OR a resident of a health establishment such as a nursing home OR a residential care centre OR a resident of a home for individuals with reduced physical or mental autonomy;
5. The proposed insured is not currently being tested for and has not been diagnosed with, informed of or treated for any type of cancer during the past 3 years;
6. The proposed insured has not been informed that he/she has tested positive for the human immune deficiency virus (HIV);
7. The proposed insured does not have Acquired Immune Deficiency Syndrome (AIDS) or any AIDS-related disease;
8. In the last six months, the proposed insured has not used drugs such as opium, heroin, morphine, codeine, Demerol, barbiturates, amphetamines, cocaine, hallucinogens and anabolic steroids, other than as prescribed by a doctor, or methadone as prescribed or not by a doctor.

Alternative is designed for people who have medical issues or do not want to do a medical or provide a doctor’s report. It is available in a 20 year term version where the coverage ends after 20 years but is much more affordable. This could be used for covering part of a mortgage.

Product features (coverage ends after 20 years)

This policy is available in amounts of $10,000 to $100,000 and it has a two year deferral period during which if death occurs, the premiums plus and interest component are refunded. The qualifying questions are similar but slightly different to the Alternative permanent insurance version.

Product questions

1. Are you currently
   • Incapable of independently carrying out at least one of the basic activities of daily living such as: getting up, walking, washing, dressing or eating?
   • Admitted to a hospital, clinic or extended care facility or are you a resident of a health establishment such as a nursing home, a residential care center or a resident of a home for individuals with reduced physical or mental autonomy?
   • Under guardianship or curatorship?
2. Within the past 3 years
   • Have you had surgery, been hospitalized, been prescribed one or more drugs, been diagnosed as suffering from or received treatment for one or more of the following conditions:
     • Angina pectoris, coronary insufficiency, myocardial infarction (heart attack),
     • Chronic pulmonary disease requiring the administration of oxygen at congestive heart failure the hospital or at home?
     • Coronary artery dilatation (angioplasty) or coronary bypass surgery?
     • Cirrhosis of the liver, chronic renal failure or Alzheimer’s disease
     • Malignant tumour, cancer, leukemia or lymphoma? f) Replacement, transplant or graft of an internal organ?
3. Have you ever used any hard drugs such as opium, heroin, morphine, amphetamines, cocaine, hallucinogens, anabolic steroids not prescribed by a physician, or methadone (whether prescribed by a physician or not)?
4. Have you ever been informed of a positive test result, or are you a carrier or sufferer of Hepatitis B or C or chronic Hepatitis, HIV (AIDS virus), AIDS or any other AIDS-related illness?
5. Are you waiting to undergo an investigation, including a biopsy, or to undergo diagnostic tests in neurology, nephrology, oncology or cardiology, or have you been advised to undergo such an investigation or such tests but have yet to act on such advice?