What is Guaranteed Issue Life Insurance | Why Should I Buy It?


Life insurance with guaranteed issue, commonly referred to by the name guaranteed acceptance insurance is a total life insurance policy that does not consider the applicant’s health condition is not considered.

Dissolving the guarantee Issue Insurance for Life Insurance

The Guaranteed Issue Life Insurance (advertised under the title Guaranteed Acceptance Colonial Penn) is a whole life insurance policy that is primarily used for funeral insurance and funeral coverage. Insurance companies that offer this kind of insurance typically are targeting seniors with existing medical conditions that hinder them from qualifying medically for low-cost conventional whole-life insurance.

However, there are some insurance companies that market assured issue life insurance direct to older people via ads on TV that are built on emotions. We don’t think this is an issue, however often, the guaranteed issue insurance offered to senior citizens who could have qualified for a lower low-cost policy.

Life insurance with guaranteed issue should be considered as a the last option for life insurance as it’s typically more expensive and comes with an expiration date that the insurance company won’t pay the full death benefit in the event that the policy holder dies due to natural causes.

Here’s How it Works:

The majority of life insurance companies that provide life insurance for seniors will offer two or three kinds of policies to choose from:

  • A Level Benefit Life Insurance Level Benefit Life Insurance provides the full death benefit starting on the date of the policy’s first day of coverage regardless of whether the insured is killed by natural causes or from accidental causes. The insured must be medically qualified to be covered by providing “yes” or “no” to a full list of medical concerns when filling out the request. The policy of level benefits will always be the cheapest.
  • Gradually Increasing Benefits in Life Insurance The graded benefit policy was developed to accommodate those who are not medically qualified for a policy with a lower benefit. In this policy, the death benefit is paid out on a lower basis for the initial three or two years. A typical policy with a graded benefit will pay 25 percent of the death benefit in the first year, 50 percent the following yearand 75% in the 3rd year and the remaining 100% after. In most cases, death due to an accident is covered 100% from the very first day. Different insurance companies offer different payouts. Ensure that you are aware of the payout prior to signing a contract for an insurance policy with a graded benefit.
  • Guaranteed Issue Life Insurance (also called Guaranteed Acceptance or Modified Benefit) Life insurance that is guaranteed issue insurance was created for those with multiple or serious health issues that keep them from being covered under the level reward or graded expense policy. Because the insurance company doesn’t take into account the applicant’s health condition (no medical examination and no health-related questions) when evaluating the risk it accepts an unidentified health risk and may charge a higher premium and establish a waiting period. In general, insurance companies that provide guaranteed life insurance policies will pay a an adjusted death benefit for 2 years. This is equal to the amount of premiums paid plus 10% if the death is due to natural causes. Also, because insurers use various modified death benefits ensure that you are aware of how the death benefit will be dependent prior to buying the policy.

Because the guaranteed issue life insurance plan can be the most costly, and comes with a waiting time isn’t it logical to determine if you’re eligible for a better policy before purchasing it?

You’ve mentioned Final Expense Insurance. What is that?

Insurance for final expense is an umbrella marketing term used to describe total life policies which are designed to cover the policyholder’s final expenses such as funeral and burial expenses as well as medical bills unpaid as well as nursing home expenses that are non-covered by insurance for health.

Insurance companies that provide last expense coverage (and they are numerous) typically make use of whole life insurance because the policy will last an entire lifetime, and the premiums remain at a level and the policy builds its value as time passes. Final expense insurance is typically offered to those between the ages 50 to 85. It provides an amount of death benefits that range from $5,000 to $35,000. Again, different companies offer different types of insurance, so make sure to check with your agent, who typically represents the majority of the companies offering life insurance with guaranteed issue.

What is the difference between Gradual Benefits, Level Benefits or Guaranteed Issue vary with regard to price?

There are many insurance companies that provide final expense life assurance, Level Benefit is the most affordable and then Gradual Benefitwill cost a bit more, and Guaranteed Issuewill become the least costly. Here’s an example quote for insurance for $10,000 policy males who are not smokers for every type of policy You can see in this chart, each plan is more expensive as with each plan, the applicant’s risk to the insurer increases.

What other options are available, besides Guaranteed Life Insurance Issue?

The rates you pay for life insurance are always based on three aspects which include your age, health as well as what amount you’d like to purchase. If you’re looking for greater coverage at the lowest cost, it’s usually not too late to look into the possibility of purchasing term life insurance. This is because over the many times we’ve encountered seniors who believe that they have to buy whole life insurance, when in reality, they may qualify to purchase term insurance.

While it is generally meant for people who are elderly and healthy however, there are many there who aren’t and, therefore, you should determine if they are eligible for life insurance coverage that is more comprehensive for lesser cost. It is true that term insurance is temporary , however most policies offer a conversion option that permits the owner to convert the policy into permanent insurance before the policy is due to expire.

Always talk to experienced and reliable agents

If, like many people, you want to buy insurance for life at the lowest price from a highly-rated company who is there whenever you require them make sure you speak to an insurance broker such as the experts at LifeInsure.com to determine a plan that is suited to your needs and budget.

If you buy your insurance directly from an insurance firm or through a company agent (captured agent) you severely limit the choices of insurance companies and the insurance products.


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