How Canadian Seniors Qualify for Life Insurance

In Canada and around the world, life insurance companies underwrite, or assess, the risks of carrying your policy. For the elderly, this can include medical assessments but will also include lifestyle factors as well, such as:

• Current health
• Nicotine and drug use
• Family medical history
• Personal medical history
• Hazardous activities
• Driving record

Rating classes

Canadian seniors are assigned a rating to their policy based on the risks presented. This rating determines the policy’s cost (also known as the premium). These ratings vary among insurance companies, but every Canadian insurance provider uses some version of the following:

• Preferred rating goes to seniors with low risk, and is the least expensive policy
• A standard rating goes to seniors with average risk and is a mid-priced policy.
• A sub-standard rating is issued to seniors with high risk and is the most expensive policy.

Why do seniors in Canada get declined for life insurance?

Seniors can be declined for life insurance for a number of reasons, the most common being their age and current health condition. There are plenty of other reasons for being declined. Here are some of the more common ones:

1. A Specific Health Condition. This often happens when someone has recently had cancer or a heart attack, which can make traditional life insurance policies difficult to acquire. This can be related to the health condition itself, but it can also be because some insurance companies do not deal in higher risk life insurance policies for seniors.

An experienced life insurance broker can be an important and useful tool in these instances because they know where to apply for the right policy. Finding an affordable and quality policy is possible, and having someone who understands the industry and the different companies can help seniors get the policies they need. In the event that traditional policies are no longer an option, an experienced broker will present alternatives, such as a no medical life insurance policy, which does not require a medical exam.
2. Financial Setbacks. Insurance policies in Canada have to have financial justification. Your max policy, for example, cannot exceed 10-30 times your annual income, depending on your age and marital status. If a senior does not have an income and cannot financially justify a need for a policy, they may be declined.

3. High-Risk Activities. International travel is the main high-risk activity that affects seniors, and this can lead to issues when finding a life insurance policy.

4. A Criminal Record. Criminal records can affect the life insurance policies of seniors, no matter how long ago the crime was. In general, there are two major factors that are considered with applicants who have a criminal record: the time since conviction and the type of conviction. Multiple felonies increase your chances of being declined as well. Misdemeanors or a single crime from a long time ago typically do not affect policy approvals, depending on how long ago the probation period ended.

Insurance brokers are invaluable to Canadians with a criminal record. Brokers will suggest policies that can help seniors get coverage without needing to get into the details of their past.

5. Drinking and Driving Charges. Anyone, no matter the age, who has more than 3 DUIs (driving under the influence charges) in the past decade will be instantly declined by every insurance company in Canada. Less than that and you will have some options, but it depends on insurance companies to which you apply.

6. Substance Abuse . If anyone, no matter their age, is currently using illicit drugs or abusing substances, life insurance will be much more difficult to acquire. Elderly who have been drug-free for three years, however, should be able to get approved for a life insurance policy.

A few words about life insurance without physical exam

Elders have to face many challenges of being able to obtain a life insurance policy. Their age range along with health conditions can make it difficult to be able to get approval on many types of policies, yet seniors should not overlook the importance of being properly covered.

It’s truly difficult and frustrating to buy life insurance. That is why you can talk to insurance professionals from NoMedicalLifeInsurance in Canada to purchase funeral insurance without medical exam. This small policy will make all of the difference in the event of your death. Your surviving family will already be faced with the tragic ordeal of your passing. Do not add compounding bills to their grief . Take the time to plan ahead and have a policy in place to cover your funeral expenses. This will not only ensure that your resting bills will not be their out-of-pocket expense, it also helps to ensure that your final wishes will be carried out as you had wished.

While death is not pleasant, it is inevitable. Take the time now to be sure that your family is properly prepared to cover the financial side of these events later, when the time comes.

Learn more about funeral insurance for seniors in Canada: https://nomedicallifeinsurance.ca/funeral-insurance-for-seniors/