Simplified vs Guaranteed Issue Life Insurance in Canada — What’s the Difference?
For Canadians who may not qualify for traditional fully underwritten life insurance, non-medical options can provide an alternative path to coverage.
But not all “no medical” policies are the same.
Two common options are simplified issue and guaranteed issue life insurance. Understanding how they differ can help you avoid overpaying — or applying for the wrong type of coverage.
This guide explains how each works in Canada, who they’re designed for, and how to decide which option fits your situation.
What Is Simplified Issue Life Insurance?
Simplified issue life insurance does not require a medical exam, but it does include health questions.
Instead of blood work or a physical exam, insurers rely on:
- A health questionnaire
- Prescription database checks
- Basic medical history disclosures
Approval is typically faster than traditional underwriting, and coverage amounts can be higher than guaranteed issue policies.
However, you must still qualify based on your answers.
Simplified issue is often considered when:
- You have minor or well-managed health conditions
- You want faster approval
- You’ve been rated or postponed before
- You prefer avoiding full medical exams
These policies aim to reduce friction — but they still involve underwriting.
What Is Guaranteed Issue Life Insurance?
Guaranteed issue life insurance requires no medical exam and no health questions.
Approval is guaranteed, regardless of medical history.
Because the insurer takes on more uncertainty, these policies typically:
- Offer lower coverage amounts
- Have higher premiums
- Include a graded benefit period (often 2 years)
Guaranteed issue is usually designed for individuals who:
- Have been declined multiple times
- Have severe or complex health conditions
- Are seeking small final expense coverage
It is often a last-resort option — not necessarily the first choice.
Key Differences Between Simplified and Guaranteed Issue
Here’s how they compare at a high level:
Health Questions
- Simplified: Yes
- Guaranteed: No
Medical Exam
- Simplified: No
- Guaranteed: No
Coverage Amounts
- Simplified: Moderate
- Guaranteed: Usually lower
Pricing
- Simplified: Generally more affordable
- Guaranteed: Typically more expensive
Best For
- Simplified: Mild to moderate health concerns
- Guaranteed: Serious or multiple declines
In many cases, simplified issue provides better long-term value — if you qualify.
Which Option Is Right for You?
The right choice depends on:
- Your medical history
- Whether you’ve been declined before
- The amount of coverage you need
- Your budget
- Your long-term goals
If you’ve already been declined for life insurance, your strategy may look different than someone applying for the first time.
(You may also want to understand how the Medical Information Bureau (MIB) affects underwriting decisions.)
Choosing between simplified and guaranteed issue isn’t just about approval — it’s about selecting the option that makes sense for your situation.
When to Consider Reviewing Your Case Before Applying
Applying for the wrong type of non-medical coverage can:
- Result in another decline
- Increase your premiums unnecessarily
- Limit future options
In many situations, reviewing your profile first can help determine whether simplified issue is realistic — or whether guaranteed issue is the only viable path.
Non-medical cases vary significantly from person to person.
A Final Perspective
Simplified and guaranteed issue life insurance both serve important roles in Canada’s insurance market.
But they are not interchangeable.
Understanding the difference can help you avoid overpaying or applying for coverage that doesn’t truly fit your needs.
No pressure. Just clarity.
Not Sure Which Non-Medical Option Fits?
Every health history is different. Reviewing your situation before applying can prevent unnecessary declines and help you choose the right path.