Life is unpredictable. Don’t let a surprise illness, or your age, or medical history prevent you from leaving something behind for loved ones. That’s where Guaranteed Issue Whole Life Insurance comes in — especially for seniors, or people with health issues. In Canada, it will ride alongside traditional term life products or fully underwritten whole life plans in 2025.
It is worth mentioning that Whole Life Insurance represents 68% of new premium dollars in mid‑2025, according to recent reports, having the largest share of the Canadian Life Insurance market. Which is to say: People still care about longevity. But not everyone is able to qualify by visiting a doctor. That’s where guaranteed issue plans come into the picture, filling in coverage gaps.
This guide explains what Guaranteed Issue Whole Life is, how it compares with Term Life Insurance vs Whole Life Insurance, who qualifies (including for Whole Life Insurance for seniors), how cash value works, and provides information on getting a Whole Life Insurance quote online.
What Is Guaranteed Issue Whole Life Insurance?
Guaranteed Issue Whole Life is a type of Permanent Life Insurance that does not require medical exams or health questions. As long as you’re within the eligible age bracket and meet basic criteria (residency, premium payment), acceptance is guaranteed.
Key features include:
- Level premiums that typically do not increase
- Guaranteed death benefit for as long as premiums are paid
- Cash value growth (though usually slower and limited in early years)
- Some policies include a waiting period or a graded-benefit clause if death occurs within the first few years
For example, Manulife offers a “Guaranteed Issue Life” product with coverage from $10,000 to $100,000 (ages 18–70) and $10,000 to $50,000 (ages 71–75) without a medical exam or health questions.
So guaranteed issue is really about accessibility — giving coverage to individuals who might otherwise be declined.
Guaranteed Issue vs. Underwritten Whole Life & Term Life
Let’s contrast the three common categories: term life, underwritten whole life, and Guaranteed Issue Whole Life.
| Feature | Term Life | Underwritten Whole Life | Guaranteed Issue Whole Life |
| Medical exam | Yes (except for some simplified issues) | Yes | No required health checks |
| Premiums over time | Fixed for the term period; renewal is higher | Fixed for life | Fixed premiums, often with a higher initial rate |
| Duration | Fixed term (10/20/30 years) | Lifetime | Lifetime (as long as premiums are paid) |
| Cash value | None | Builds cash value over time | Cash value built, but slower growth |
| Death benefit | Paid only during term | Paid whenever death occurs | Paid whenever death occurs (with first-year clauses) |
| Ideal for | Young & healthy needing protection | Long-term financial planning | Seniors, people with health issues, covering funeral/legacy |
So guaranteed issue is less flexible and more expensive relative to underwritten options, but provides an avenue for coverage when other options won’t.
Who Qualifies? Eligibility For Guaranteed Issue Whole Life
The eligibility criteria are simpler, but still have limits:
- Age ranges: Many insurers permit it for ages 45 to 75 or similar brackets. Some are older.
- No medical underwriting: You won’t be asked about health conditions, medication, or lifestyle.
- Non-smoker or smoker status often doesn’t matter (though premiums may adjust for smoker classification).
- Canadian residency is typically required.
- Premium payment ability: You must commit to paying the premiums. Failure to do so can cancel the policy.
Because acceptance is guaranteed, insurers sometimes incorporate waiting periods (e.g., first 24 months) or limited benefits if death occurs early, to protect themselves from immediate payouts.
Whole Life Insurance Cash Value: How It Works With Guaranteed Issue
One of the big advantages of whole life (vs term) is the cash value component — a savings-like feature within the policy.
With Guaranteed Issue Whole Life:
- Cash value usually grows slowly, especially in the early years
- You can borrow or withdraw against the cash value later, subject to policy terms
- If you surrender/cancel the policy, you may receive some of the accumulated value (less fees)
- Be cautious: excessive borrowing can reduce the death benefit
However, because guaranteed issue policies often start with lower margins, cash value may take many years to accumulate meaningfully.
How Premiums Are Priced & What You Can Expect
Premiums for Guaranteed Issue Whole Life tend to be higher compared to underwritten plans due to the risk the insurer is taking.
Factors that influence cost:
- Age at issue
- Face amount (size of death benefit)
- Policy structure (duration, benefit riders)
- Insurer pricing strategy
Based on Canadian Whole Life Insurance Plans cost data, for a $100,000 underwritten whole life plan, premiums in 2025 can range from $65/month to $462/month, depending on age, smoking status, etc. Guaranteed issue plans often have a higher rate premium because of the lack of an underwriting buffer.
Whole Life Insurance For Seniors: Is It Viable?
Yes — Guaranteed Issue Whole Life is often designed for seniors who cannot qualify elsewhere due to health. It provides:
- A death benefit that can cover funeral or final expenses
- Lifetime protection rather than term expiration
- A degree of cash value stability later in life
Though premiums may be steep, for many seniors, the peace of mind and guaranteed acceptance outweigh cost concerns.
How To Get A Whole Life Insurance Quote Online
Most Canadian insurers allow you to get Whole Life Insurance quotes online, including guaranteed issue versions. The process typically is:
- Input age, amount desired, and payment period
- Select the “No medical exam / guaranteed acceptance” option
- Receive estimated premiums and policy details
- Review exclusions, waiting periods, and terms
- Apply and submit payment to bind the policy
Because there’s no underwriting, approval often happens quickly once the premium is paid.
Risks & Drawbacks You Should Know
- Higher cost compared to underwritten alternatives
- Slower cash value accumulation
- Possible waiting periods or graded benefits in early years
- If premiums aren’t paid, coverage lapses — no safety net
- Fewer riders or optional enhancements due to underwriting constraints
Always read the fine print. Even “no exam” doesn’t mean “no risk.”
When Guaranteed Issue Makes Sense
Here are situations when it’s a smart move:
- You’ve been denied Life Insurance due to health
- You want a small death benefit (funeral expenses), even late in life
- You want certainty — acceptance guaranteed
- You don’t want to face underwriting or questions
It’s not for everyone, but for many, it’s the only path to coverage.
Market Trends & Statistics for 2025
- Whole Life Insurance still dominates new premium sales in Canada — 68% share in early 2025.
- Life Insurance assets in Canada grew to about $5,500 billion in 2022; total premiums were up to $27 billion in 2022.
- Despite overall Life Insurance sales dipping in policy count in 2024, whole life policy counts increased slightly
These numbers show guaranteed issue is part of a broader demand for stable, permanent protection, even in a shifting market.
Choosing The Right Company & Being Protected by Assuris
When buying any Life Insurance in Canada, ensure your insurer is licensed and backed by Assuris, a nonprofit that protects policyholders if a life company fails.
Also compare:
- Premiums and cost trajectory
- Waiting periods or graded benefits
- Borrowing rules and cash value access
- Riders and extra benefits
Obtain multiple Whole Life Insurance quotes online before committing.
Learn More: How to Decide Between a Whole Life Insurance and a Universal Life Insurance Policy?