If you have health issues or are very elderly and have been turned down for a traditional life insurance coverage policy in the past, a guaranteed acceptance life insurance policy is one solution that could be right for you.
You will not be turned down with a guaranteed life insurance policy. All you have to do is apply and be willing to pay the premiums.
Top 3 Leading Causes of Death in the U.S. in 2011
- No. 1 cause of death: heart disease – 577,689
- No. 2 cause of death: cancer – 574,742
- No. 3 cause of death: chronic lower respiratory disease – 138,080
What Is Guaranteed Acceptance Life Insurance?
Guaranteed acceptance life insurance is a life insurance policy that provides coverage to a person regardless of health, age and professional or lifestyle risk. It is often considered a high-risk form of life insurance policy, due to the fact that it is designed in particular for people who are not eligible for standard life insurance policies due to one or more risk factors.
Who Needs Guaranteed Acceptance Life Insurance?
This form of life insurance is most suitable for individuals who fall into the following categories:
- People with severe disabilities who can’t find traditional life insurance coverage
- Individuals who have a life-threatening or terminal illness
- Elderly seniors
- Those who can’t get traditional life insurance policies and are looking to cover funeral or burial expenses
- Anyone unable to get life insurance policies due to being a high risk candidate
Features of Guaranteed Acceptance Life Insurance
There are a number of features that distinguish guaranteed issue life insurance policies from other forms of life insurance policies, such as term and permanent life. For example:
- No medical exam or tests are required.
- No medical questionnaire is required.
- Approval is largely guaranteed by most companies, although some insurers have restrictions allowing them to decline some applicants.
- Guaranteed life can be a term or permanent policy, although most available policies are a form of term life insurance.
- Available death benefits are substantially lower, ranging from $5,000 to $50,000 dollars.
- Benefits will be limited for the first 2 years. On most policies, if you die within the first 2 years, your beneficiary is usually only eligible to receive either the premiums which have been paid towards the policy up to the time of your death, a depreciated value of the original policy, or nothing at all. On most policies, full death benefits are only available after this time period has lapsed.
- Age restrictions exist, and this form of insurance is generally only available to individuals between the ages of 45 to 85.
- Guaranteed life is more expensive to buy than other traditional forms of life insurance.
How Does Guaranteed Issue Life Insurance Work?
Getting approved for guaranteed life insurance is very simple; all you have to do is submit an application. You do not need to take a medical exam or even complete a medical questionnaire. To keep the policy in place, you simply have to keep current with your premium payments. The premium is guaranteed for the life of the policy.
Does Guaranteed Issue Life Insurance Make Sense for Me?
Guaranteed issue life insurance can be a sensible solution for anyone considered high-risk by life insurance companies. It’s ideal if you’ve been refused a life insurance policy because of the state of your health or age.
Guaranteed issue life insurance is typically a “last resort” form of insurance for those who can’t get any other form of life insurance. It is ideal if you want to provide for your burial expenses and perhaps to cover some outstanding debts. It can also be used to form a small financial legacy for your family.
Although this type of insurance is easy to acquire, you should be aware that the death benefits are much lower than what is available on other types of life insurance policies. Premiums for guaranteed issue life insurance are considerably more expensive than any other type of life insurance. You should also make sure you know about any time limitations and the restrictions on your guaranteed life policy.