Guaranteed Issue Life Insurance


Guaranteed Issue Life Insurance

Is Guaranteed Issue Life Insurance right for me?

As the name suggests, guaranteed issue life insurance is a type of life insurance that provides coverage regardless of health status.

It provides assurances that you will be able to receive all the benefits that a life insurance policy offers with no medical exam required.

This could be an option if you have recently been denied life insurance coverage (high risk life insurance) or are difficult to insure because of your age, health, or profession (race car driver, sky diver etc).  A guaranteed issue life insurance policy is something that you may want to review although it does have it’s limits. Make sure you contact a reputable agent or research all the types of  life insurance policies available before siding with one particular product.

Guaranteed Coverage

Guaranteed issue life insurance is an ideal policy for those who:

  • Have a pre-existing medical condition
  • Previously denied coverage with a traditional life insurance policy
  • Participates in Extreme or deemed risky sports such  sky diving

Since applicants are not required to reveal a detailed medical history or go through medical exams, almost everyone is eligible to apply for this type of insurance policy.  This is very appealing to both those that are seniors as well as those approaching their twilight years.

Fast Issuance

Since acceptance is virtually assured; your guaranteed issue life insurance policy is normally delivered in a matter of days. Normally there is a two year waiting period before you can re-apply for most forms of life insurance.  This is not the case with guaranteed life insurance.  You can apply at any time, even if you have recently been turned down for a whole life insurance policy.

How Much Does Guaranteed Issue Life Insurance Cost?

Your monthly premium will be based on your age and several other factors..

  • Types of life insurance policy – term life insurance or whole life insurance?
  • Do you smoke?
  • Do you have HIV or AIDS?
  • Have you been declared terminally ill by a physician?
  • Are you living in a long term care facility or hospital?

Guaranteed Life Insurance Benefits

Since acceptance is guaranteed, coverage options are limited.  Although the maximum amount of coverage varies from one insurance provider to another, the most insurance you can buy with guaranteed life insurance is generally around $50,000.  If you need more coverage you may want to consider other types of insurance options.

In addition, many guaranteed life insurance policies require three years of premium contributions before providing the full death benefit.  This means that if the covered individual dies sooner, the death benefit to the beneficiary may be limited to the collected premiums plus interest.

Do I Qualify?

Just about everyone qualifies for guaranteed issue life insurance.  However, it is common for many carriers to restrict eligibility to within certain age groups.  With that being the case, it is best to buy life insurance when you are young, but it’s not too late for seniors to obtain life insurance either.

For example, while some carriers guarantee coverage for individuals between the ages of forty and eighty, others, provide coverage for those between the ages of forty-five to seventy-five.  Since there is no medical exam, you can not be turned down based on your health condition. That’s why this type of coverage is popular with older individuals that have a history of health problems.

Guaranteed Issue Life Insurance: Choosing Term Life or Whole Life

Guaranteed Issue Life Insurance Quotes

You can choose term life or whole life insurance.  Your decision will usually be based upon the amount of coverage you need and your financial status.

The most affordable guaranteed issue life insurance is a term life policy.

  • A term life insurance policy has no cash value
  • In force for a specified number of years which is the term
  • Based on your age, carriers may only guarantee issue for a one to ten year term
  • May not be able to renew your term life policy once you have reached the maximum age limit for the policy

A whole life insurance policy is a more expensive option.

  • Ability to accumulate cash value.  This means that over time the policy may be worth considerably more than the original coverage amount.
  • You can also borrow against the policy and withdraw cash if you need it.
  • Insures the individual for the remainder of their life rather than just a specific number of years.
  • You won’t have to worry about not being able to renew a whole life insurance policy due to your age.[/color-box]

Guaranteed issue life insurance is considered by some as the insurance of last resort. But, it does give individuals the ability to obtain life insurance that would otherwise be unable to.  So, if you missed the opportunity to buy life insurance when you were younger, don’t despair.  You can still obtain life insurance that will enable you to provide a death benefit to your survivors to give them a financial cushion.

Is There a Catch?

There is no catch.  Insurance companies protect themselves with a guaranteed issue life insurance policy by restricting acceptance to certain age groups and by limiting the amount of coverage that they provide to individual policy holders.  Also, the premiums take into consideration the higher risk associated with insuring individuals with health challenges.  That’s why a guaranteed issue policy is more expensive than a traditional life insurance policy.  However, this type of insurance can be affordable for many seniors on a fixed budget. Plus, it’s certainly better than the alternative of not having any life insurance at all.

Compare Guaranteed Issue Life Insurance Quotes

It’s a nice feeling to know that one has the security that life insurance brings to a family. To decide if a guaranteed issue life insurance policy will fit your needs and budget, all you have to do is go online and compare life insurance quotes from different carriers.  By doing so you will be able to select the best guaranteed issue life insurance that meets your financial needs and budget.  If your interested in this kind of policy you can also call our office at 401-884-4600, contact us via email, or use the Send Voice Mail option at the top of the page.  We are happy to help.

-Jim

 

Speak Your Mind

*