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What is Guaranteed Issue Life Insurance?

Guaranteed Issue Life Insurance

 

Guaranteed Issue Life Insurance

 

What is Guaranteed Issue Life Insurance?

Guaranteed Issue Life Insurance is a no questions asked life insurance policy. When it comes to these policies, you are not required to answer any medical questions about yourself, everyone qualifies. There are only a few minimal requirements to qualify for Guaranteed Issue Life Insurance:

  • Older than 40yrs of age
  • Younger than 80yrs of age
  • The ability to sign the application
  • The ability to afford the premiums

 

Advantages this Type of Policy

              a)      Guaranteed Issue Life Insurance does not require a  Medical Exam

As mentioned above, a Guaranteed Issue Life Insurance policy requires no medical exam, no blood work, no medical records and no questions. Many consumers can find an exam invasive. Also, if you aren’t in the greatest health, this policy is probably right for you. It is also a relief knowing that all you have to do is answer no to three main questions and you will get approved.

              b)      Guaranteed Issue Life Insurance application will not deny you

As the policy name states, you can’t be declined for this type of insurance. Smokers, people with medical conditions, and seniors find this type of policy very appealing.

Disadvantages

              a)     Guaranteed Issue Life Insurance is Expensive

Guaranteed Issue Life Insurance can be more expensive because the company is taking a risk by offering you this policy. All they know about you is your age and where you live. In order to cover the risk they are taking by approving you, they must charge a high premium.  You will always end up paying more for a guaranteed issue policy than an underwritten policy such as with companies like Banner Life.

             b)      Guaranteed Issue Life Insurance offers Less Coverage

Guaranteed Issue Life Insurance policies usually range from $2,000-$25,000. Once again, because the company knows so little about you, they don’t want to approve a million dollar policy. Also, because Guaranteed life is so expensive, not many would be able to afford a high value policy. Therefore, if you’re looking for a million dollar policy, then Guaranteed Issue Life Insurance probably isn’t your solution.

             c)       Guaranteed Issue Life Insurance is a Graded Benefit

Guaranteed Issue Life Insurance Grades the benefit, which means that the beneficiaries would not receive the full amount of the policy until it has been in effect for over two years. If the insured dies prior to the end of the graded benefit, the beneficiary would simply receive the premiums back plus interest paid. Some companies offer as much as twenty percent, which can be an advantage just by itself compared to not buying  coverage and leaving the money in the bank.

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