What is Guaranteed Issue Life Insurance?
Guarantee Issue Life Insurance, also referred to Guaranteed Acceptance Life Insurance, is a form of life insurance that guarantees acceptance into the plan regardless of past or present health concerns. These plans tend to be geared to people over the age of 50, however depending on the state you live in and the company, there are guarantee issue life insurance polices for everyone from age 0-85.
There are some key differences between guaranteed issue life insurance and conventional whole life insurance policies. Guaranteed issue life insurance pays less than conventional whole life insurance policies. The former may range anywhere from $5,000 to $25,000—or a little more depending on the company. The benefits are graded. Graded benefits do not pay out if the insured dies within the first one or two years of the policy issue date. The insurance company typically just refunds the premiums instead. Some companies, such as AIG, pay 110% of all premiums paid if the death occurs within the first two years and automatically include an accidental death rider, that starts the day of the first payment.
Key Features
*No Health Questions *Graded Death Benefit
*Builds Cash Value after first two years *Lower overall coverage amount
*Simple and fast application process *Higher Premiums
Who should consider a guaranteed issue life insurance policy?
*People who do not qualify for traditional whole life insurance due to illness such as HIV/AIDS, Alzheimer's/ Dementia, CHF, reoccurent cancer, a past bone marrow or organ transplant, diabetes WITH complications such as diabetic neuropathy, Hepatitis C, cirrhosis, amputation due to diabetic complications, recent major surgery such as open heart surgery or on oxygen (other than CPAP).
*People who prefer not want to answer health questions during an application proces or have a medical exam.
*Anyone who has been turned down for traditional life insurance of any form.
As with any life insurance policy, always speak to a life insurance agent. They can help you find the best policy for you and can save you money. There are many Guarantee Issue Life Insurance Policies advertised on television and through the mail. It is always best to talk with a licensed agent, you may qualify for a less expensive plan with first day benefits. A broker agent can compare rates for you, and ensure you get the best possible plan, at the lowest price.
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