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What is Guaranteed Issue Life Insurance?
A guaranteed issue life insurance is a protection policy that is taken out which will pay out cash to a named beneficiary when the insured has died. Also, this type of insurance is offered by companies regardless of the health of the applicant. Guaranteed issue life insurance is often seen as a last resort for those that are unable to get other life insurance types because of their health or past health issues.
With guaranteed issue life insurance, the only requirement that is needed is that you pay the premiums. However, these premiums will usually be higher then what a qualified applicant would pay for the same type of coverage that will need the applicant to undergo medical examinations.
Not only does guaranteed is insurance have higher premiums, but also, insurance companies are able to protect themselves from risk in two ways. The first way is to offer low pay-outs and the second way is not provide a death benefit during the first two years after the policy is issued. Although, if the insured dies this two year span, then the insurance company will provide a refund of the premiums that have been paid.
The Benefits of Guaranteed Issue Life Insurance
The major advantage of having guaranteed issue life insurance is that you are able to protect your family financially once you are gone and they will be able to cover any bills that you may have left behind.
- You are able to receive up to $100 000 in life insurance coverage.
- You can’t be turned down as acceptance is guaranteed.
- You will get valuable protection throughout your life.
As you will not have to undergo any physical examinations, medical tests or health questions it makes this insurance a guaranteed acceptance life insurance.
The rates that are charged will stay the same no matter your age or your health. As this is a guaranteed acceptance life insurance without any medical underwriting, the premium that you pay will also include a mortality risk charge, which is a reason the premiums are higher.
You are able to have guaranteed issue life insurance for the rest of your life as long as the premiums are paid by the due date. The premium pay-outs will end at 95 years old and the insurance can’t be cancelled without your consent.
The Top 10 Most Reviewed Companies for Life Insurance
When you are looking for guaranteed issue life insurance you will find plenty of companies that offer this, but you will want the best. There are some companies that have been reviewed more than any other company. Here are the top most reviewed life insurance companies that you are able to compare so that you are able to get the best policy at the best price.
MetLife
AARP Life Insurance
American General Life Insurance
Prudential Life Insurance
Hartford Life Insurance
AIG Life Insurance
J.C. Penny Life Insurance
John Hancock Life Insurance
Bankers Life and Casualty Life Insurance
Mutual of Omaha Life Insurance.
When you are looking for a company that offers life insurance products and ones that offer guaranteed issue life insurance then it is always best to shop around. You will need to compare the policies, as well as the premium they are asking for the level of coverage they offer. Also look at various reviews, such as our review of Globe Life Insurance. The best way to do this is to get various quotes from these companies or you are able to find online sites that will gather these quotes for you so that they can be compared easily. This will save you time
Any type of life insurance product should not be rushed into and you will need to consider all of your options. You will not only be protecting yourself, but you will also be protecting your loved ones.
Saving on Guaranteed Issue Life Insurance
If you want to get a life insurance policy, but are unable to qualify for other products, then life insurance with a guaranteed issuing might just be the ticket. What is in the application process and how hard is it to receive?
When it comes to guaranteed issue life insurance an applicant will only have to answer four questions, but only three of them will matter. The questions are:
- Do you smoke?
- Are you in a hospital or do you live in a long term care institute?
- Are you terminally ill?
- Do you have AIDS or HIV?
You are still able to get a guaranteed issue life insurance even if you do smoke but it will cost you more. In regards to the other three questions, if you answer yes then you probably won’t get a policy. However, if you answer no to them you will get a policy under this life insurance program. If you’re looking for more savings, you may get help with funeral costs directly without taking out a full insurance policy.
It is actually easier and faster to get a guaranteed issue policy than other life insurance products. The entire processing scan is completed within days.
Cons of a Guaranteed Acceptance Life Insurance
- Cost
Guaranteed issue life insurance is more expensive than normal life insurance. This is based on the fact that insurance company will not know how healthy you are so this will create more risk for the insurance company. They are then able to compensate for this risk by charging a higher a premium to members.
- Policy Limits
The insurance company will not take huge risks with guaranteed issue life insurance. This means that the policies and the coverage for this type of insurance are small. You will often find that the coverage you are issued is between $10,000 and $100,000.
- You aren’t able to Die too Quickly
If you die within a short period of time after you take a policy, then your family is unable to receive the full life insurance death benefit. Depending on the company that you take this insurance from and their terms you may find that you will have to live for another 2 years or so. This will then allow your family to claim the full terms of the policy. If you do die within these two years after taking the policy then your family will either get the premiums that you have paid or a paid portion of the death benefit.
As there are so many other factors to consider with guaranteed issue life insurance and it is best to speak to different insurers before you apply. You will then be able to find out what is the best policy and cover that you are able to get with the reasonable terms and a lower cost.
As these policies are smaller and they are more expensive, they are seen as a last resort for life insurance. However, if you are left with no other options, they are probably seen as better than nothing. After all, you will want some type of insurance policy.
If you suffer from a health condition that stops you from getting less expensive life insurance and you are also looking to get life insurance quickly, then guaranteed issue life insurance might be the best option.
Other Options
Another option though is simplified issue life insurance. These policies will ask you a few more questions than with guaranteed issue life insurance and they will look with slightly more scrutiny at your health. Simplified issue life insurance is cheaper, however.
You might still be able to get term life insurance even if you have a health condition. And are you a senior citizen? Then final expense insurance may be what you’re looking for. You may apply for this policy up to 100 years of age.
You may find that you are able to get a policy that is fully underwritten. You will then be able to get the coverage you need without having to spend a lot on premiums. This is due to the fact that every life insurance company will look at your health condition in a different way. You should speak to more than one company so that you are able to get the best coverage at the best price.
Guaranteed issue life insurance works because you are able to get life insurance coverage no matter what. You are not allowed to be turned down for this type of coverage in any case. Your health condition will not play a factor in getting this type of life insurance.
In order to get guaranteed issue life insurance you will needed to fall under the age requirement which is usually 55 to 75. You will not have to undergo any type of medical exam or tests to prove the type of previous health conditions.
The best benefit regarding guaranteed issue life insurance is that you are still able to protect your family financially. This top benefit can not only give you a peace of mind as you prepare to go, but your family members after your passing.
The premiums might be higher, but they might be worth paying so that you are able to get some type of coverage. Burial insurance is an option instead of the high premiums.
Guaranteed issue life insurance may not be applicable in your specific case, but it is well worth it to know the pros and cons in case it applies to you. Quotes are available from the major firms that offer this service to customers. Shop around and apply for an estimate. Compare and find out the best case for you.
