Mercier Mediation and Financial Services

Nova Scotia, Canada

Can You Get Affordable Life Insurance If You Have Been Denied?

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There are many reasons why Canadians maybe denied life insurance. The primary reasons for this are medical conditions (cancer, heart disease, PTSD, etc.) or life style issues (foreign travel, drug use, hazardous recreational sports, etc). The answer to the question is YES.

If you find yourself in this predicament of being denied life insurance, you want to look at Guaranteed Issue Life Insurance. This is a type of non-medical life insurance. These types of policies do not require a medical exam, nor health questionnaire to be completed. It is available for you even if you were declined for a traditional policy during the last 2 years. Typically, the coverage (face value) will range between $5,000 to $50,000 depending on the insurance carrier. The age requirements are usually 40-79. There are some limitations on the payout if the insured dies within 2 years of the policy being placed. With most carriers the sum of all the premiums paid by the insured would be refunded, and with one carrier it is premiums paid plus 3% simple interest. It is key to understand that, although I have listed several reasons why Canadians are denied life insurance, not all carriers use the same criteria for approving life insurance.

Example: I have a client who had been denied life insurance from one of the big insurance companies in Canada – because he suffers from PTSD and anxiety, and was on several medications. One of the key stumbling blocks with traditional insurance was that he was taking cannabis oil; this put him as a smoker which escalates the price of premiums. He did not want Term 10 or Term 20 insurance; he wanted something more permanent. I was fortunate to contact one insurance company that specializes in the Guaranteed Issue, as well as other nontraditional life insurance options (based in Canada). This is what I was able to offer him:

  • Male 42 nonsmoker – face amount = $75,000
  • Preferred Protection: Term 100 with a monthly payment of $84.93

My client had to answer a series of questions but no question was to do with PTSD or anxiety. He did not get classified as a smoker because of his cannabis oil either. Term 100 refers to the length of time for the insurance, so this client will have insurance until he turns 100 at the same price each month.

It is important to know that yes, you can get affordable life insurance if you have been denied. You just need to find the right insurance advisor.

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