PolicyMe launches new guaranteed issue permanent life policy

PolicyMe has launched a new guaranteed issue life insurance product with up to $100,000 of coverage underwritten by Toronto-based life insurance carrier Securian Canada, the online life insurance company announced Tuesday.

The policy was designed for Canadians who don’t qualify for traditional coverage or are reluctant to undergo a medical exam. It has level premiums up to age 100 and includes accidental death and terminal illness benefits.

“It all stems from the concept of not saying no to anyone,” Andrew Ostro, co-founder and CEO of PolicyMe, said in an interview. Only about 60% of the population qualifies for a fully underwritten permanent life policy.

Earlier this month, Foresters Financial shortened its look-back period for cancer and heart conditions for its A-Z Life Coverage, which offers up to $500,000 in face value with no medical exam.

While insurers are expanding eligibility for life coverage, clients should not turn to guaranteed issue coverage by default as it can be up to five times more expensive than a fully underwritten policy with the same face value, Ostro noted.

Agents should remind clients that taking a blood test to qualify for the best rate could save them thousands of dollars a year in premium savings, he added. And people shouldn’t assume that they won’t qualify for a traditional product just because of existing medical conditions. About a quarter of those aged over 50 with an existing condition still qualified for traditional coverage through PolicyMe.

PolicyMe asks applicants about 30 questions to find the most suitable life and critical illness coverage, with its application engine matching each client’s profile to over 1,000 underwriting rules, Ostro added. More than half of applicants receive instant offers without a medical exam.

The application process helps clients search for critical illness (CI) coverage at the same time, with 95% of life insurance applicants approved for CI policies, Ostro said. “There are a lot of similarities between the underwriting and the data required for life insurance and critical illness insurance.”

Jonathan Got

Jonathan Got is a reporter with Advisor.ca and its sister publication, Investment Executive. Reach him at jonathan@newcom.ca.