While there are many applicants for life insurance who can easily qualify for coverage – even with a required medical exam – there are others who may not be so lucky. This is Where a guaranteed issue life insurance policy comes into play.
Having an adverse health condition doesn’t remove your need for life insurance coverage – in fact, in many instances, it can oftentimes make your need for protection that much stronger.
While many who have been denied for life insurance coverage may feel that they have no hope, there is a possible solution – with a guaranteed acceptance life insurance policy. These policies do not require you to take a medical exam as part of the application process. In addition, you aren’t required to fill out a detailed medical questionnaire. Therefore, those who have certain health related conditions or are looking for life insurance for seniors with adverse health issues, may still be able to qualify for the life insurance coverage that they need and there are companies who offer no medical exam life insurance.
Why You Need Life Insurance
Before we discuss the advantages and disadvantages to a guaranteed issue life insurance policies, we first have to explain why you NEED life insurance. A lot of people that are denied life insurance give up on their search and just go without a plan, but that is one of the worst financial mistakes you can make for you and your family.
Life insurance is a safety net that you hope to never need. It is there in case something tragic were to happen to you. There are countless stories of families losing a loved one and left with thousands of dollars in bills and debt that they can’t pay for, that’s where life insurance comes in. A life insurance policy such as a final expense policy will give your loved ones the money they need to get through this difficult time in their lives. It gives them money to pay for funeral expenses, mortgages, credit card bills, and any other final expenses. One of the worst things that can happen is to lose a loved one, and then have the added stress of bill piling up and no way to pay for them.
Not only does life insurance provide coverage in the event of a tragedy, but it also gives peace of mind. There is a sense of calm knowing that your loved ones will be able to manage if they were to lose you, which is something you can’t put a price tag on. Just because you may have been termed down for a traditional policy, don’t think that you can’t or shouldn’t get a life insurance plan.
The Many Advantages of Guaranteed Issue Life Insurance
There are many people who can benefit from a guaranteed issue policy. Some of these can include those who:
- Have a serious health condition – Those who have extremely serious health issues such as AIDS or cancer may not be able to qualify for even a guaranteed issue policy. However, those with other conditions may be able to obtain the life insurance protection that they need by going this route.
- Are elderly – While many life insurers may turn down those who reach a certain age, many guaranteed issue plans will still accept those who are in the older age brackets.
- Participate in dangerous hobbies or occupations – Participating in dangerous hobbies such as sky diving or hang gliding will often knock people out of traditional life insurance coverage. However, they may qualify for coverage through a guaranteed issue plan.
In addition to those who have health issues, there are other benefits to guaranteed issue life insurance coverage, too. For example, there are many individuals who simply may not want to answer a plethora of medical questions or take the time to wait for a medically underwritten policy to be approved. In this case, a guaranteed issue policy could be an ideal solution.
It may also be a great solution for those who have a fear of needles. If you would rather take a pass on providing a blood and urine sample, but you still need life insurance coverage, a guaranteed issue plan can give you the coverage, without the need for the paramed in order to qualify.
Here, you are typically only required to answer just a few quick questions. These consist of the following:
- Do you smoke?
- Do you have AIDS or HIV?
- Do you reside currently in a hospital or in a long-term care facility?
- Have you been declared as being terminally ill?
If your answer is “Yes” to the first question, you can still qualify for a guaranteed issue life insurance policy. The only difference is that your premium may be higher than if you had answered no. If, however, you answered Yes to any of the other questions, it is likely that you will not qualify for a policy.
Some Additional Factors to Be Aware Of
While there are several great advantages to applying for a guaranteed life insurance policy, there are also some factors to be aware of when purchasing this type of life insurance. First, there is the issue of cost.
Because these policies are not medically underwritten, the insurer is taking on a much greater amount of risk with its applicants – and because of this, the insured will be required to pay a much higher amount of premium in order to compensate for this risk.
In addition, because of the large risk that the insurer is taking on, the company will not want to place large “bets” on potentially unhealthy insureds. With this in mind, the face amount of coverage on most guaranteed issue plans is typically small. In most cases, these plans will run between $10,000 and $100,000.
As a policy holder of a guaranteed issue life insurance plan, you will also want to ensure that you have the ability to own your policy for at least 24 months. This is called the graded or modified benefit periods. Most carriers will offer a 24 month graded period. If the insured dies during this period, for a reason OTHER than an accident, the carrier will return the premiums paid plus some interest. The interest payment is anywhere from 1% up to 20%. The higher the monthly premium payment, the higher the interest rate will be paid.
Age of issue is how old a person has to be in order to qualify for a policy. Age of issue for this type of policy starts at 40 (only 1 carrier) , a couple start at 45, most start at age 50. Maximum age of issue is generally 80. The higher in age , the more costly the premium.
With all of these factors in mind, it may oftentimes make sense to apply for a medically underwritten policy if you think you can qualify. If not, then a guaranteed issue life plan is always a good option as a policy of last resort.
In any case, it is always is good idea to compare several different policies and premiums in order to determine the very best coverage and cost that will fit your protection needs and budget.
Taking the Next Step Toward Life Insurance Protection
When you’re ready to take a closer look at guaranteed issue life insurance – or any of its alternatives – we’re here to help. We work with many of the top rated life insurance companies in the country, and we can help you to compare policy benefits and premium quotes within a matter of seconds, directly from your home computer. In order to get the process started, simply fill out the form on this page.
At Burial Insurance Plans we know that applying for life insurance coverage can also lead to many questions along the way. If this is the case, please feel free to contact us directly. Our experts are here to help you in answering any question or concern that you may have so that you can obtain the best coverage for your specific needs.
Contact us today, toll-free, at 888-389-8676 and we will make sure that you are well on your way to understanding how the process works so that you can obtain the protection – and the peace of mind – that you and your loved ones deserve.