Guaranteed Acceptance Life Insurance
With some companies you cannot be turned down for guarantee issue life insurance unless you are in a long-term care facility or in a hospital.
To buy guaranteed issue life insurance policies you answer no medical questions, take no medical examinations, and take no medical tests. It is intended for individuals whose health problems prevent them obtaining ordinary life insurance coverage.
Since there is no underwriting required to get coverage, the application and approval can be completed in a short time; sometimes only a few minutes. Compare this to regularly underwritten life insurance which may take up to two months to complete.
Guaranteed issue life insurance companies may offer either guaranteed issue term insurance or guaranteed issue whole life insurance.
Insurance companies set the price for life insurance based on the insured’s age, sex, health history, and other risk factors such as driving record and dangerous hobbies. When you are buying guarantee issue life insurance the company knows nothing about your health or other risk factors. This means the company is taking on greater risk so the insurance company will charge higher premiums.
Simply, guaranteed acceptance life insurance is more expensive. It is not recommended just to avoid submitting to a medical exam. If you are somewhat healthy you may qualify for simplified issue life insurance or even regularly underwritten life insurance – all less expensive than life insurance that is guaranteed issue.
Examples of people who may benefit from guarantee issue life insurance are:
- Cancer patients or recent cancer patients
- Diabetics with difficulty achieving good control
- People with uncontrolled blood pressure
- COPD patients
- Other serious medical history
How Can Life Insurance Companies Offer Guaranteed Life Insurance Coverage?
Guaranteed issue life insurance companies can do this because they charge higher premiums and the guaranteed life insurance policies have graded benefits. Graded benefit means that if the life insured dies within two or three years (usually) after buying the policy, a refund of the policy’s premiums, plus interest, will be paid instead of paying out the full policy death benefits. After two or three years the full death benefit is paid.
Generally life insurance companies pay out the full death benefit in the event of an accidental death in all policy years. Before you purchase guaranteed life insurance, get the complete details on death benefits in the first two or three years as this does vary from company to company.
You can purchase guaranteed life insurance from many local agents or shop online. Online insurance shops work with several insurance companies and may offer more than one or two choices for you to consider. Seek out professional advice to determine if guaranteed issue term insurance or guaranteed issue whole life insurance is more appropriate in your situation.