Guaranteed issue life insurance policies make it easy for individuals with specific health issues to get the coverage they need. Many people are not eligible for certain types of life insurance because they can’t pass a medical exam. A guaranteed issue life insurance is also known as a guaranteed acceptance policy because the insured’s family will receive a payout as long as the premiums are paid in full. This article helps you understand guaranteed issue life insurance in detail.
Does a Guaranteed Issue Policy Require a Medical Exam?
Guaranteed issue policies do not require a medical exam or prohibit coverage due to age or other well-known restrictions that sometimes prohibit older individuals from getting the insurance they need.
How Does a Guaranteed Issue Insurance Plan Work?
Guaranteed issue insurance means that you are guaranteed to be accepted for a policy. Due to the fact that the person may be older and in less than perfect health, they will have to pay higher than average premiums for the duration of the policy.
This insurance offers a graded benefit for death-benefit coverage, which means it won’t kick in until the grading term for your policy is over. If you die within that graded period, your insurance provider will simply refund your premiums to your family and the interest accrued.
When Should You Purchase a Guaranteed Issue Policy?
You can buy a guaranteed issue policy at any age. While it’s wise to buy your policy as early as possible, you can buy it at any time, so you are able to ensure that your loved ones don’t have to pay for your final expenses.
How Can You Use the Guaranteed Issue Insurance Plan Benefit?
The benefits from a guaranteed issue insurance policy can be used to pay for any final expenses you may have. This includes loans, funeral expenses, medical bills, and family’s day-to-day expenses. Your loved ones can pay for whatever debt you happen to leave behind.
Comparing a Guaranteed Issue Life Insurance Policy vs. Other Life Insurance Policies
Once you know how guaranteed issue life insurance works, it’s important to know how it stacks up against other types of policies.
Guaranteed Issue Whole Life Plan vs. Term Life Insurance Plan
A term life policy normally has restrictions attached to it. You may need a medical exam to qualify, while guaranteed issue whole life policies can be purchased regardless of your age or health conditions. Both are good choices if you may leave a family behind.
Guaranteed Issue Life Insurance Policy vs. Permanent Life Insurance Policy
A permanent life policy requires that the applicant has no known health issues. On the other hand, guaranteed life does not require a medical exam and does not turn you down if you have pre-existing health conditions. Guaranteed issue is a form of permanent life, but it has fewer restrictions than traditional permanent life policies.
Simplified Issue Life Insurance Coverage vs. Guaranteed Issue Life Insurance Coverage
Neither type of policy requires a medical exam. However, a simplified policy will require you to fill out a healthcare questionnaire to detail all of your health issues.
Whole Life vs. Term Guaranteed Issue Life Insurance Policies
A term life policy lasts for a specific number of years, usually between 10 and 30 years. A whole life policy is designed to remain in place for the rest of the insured’s life, no matter how long it may be. The costs will be higher for a whole life policy because it offers a higher payout. Upon your death, your family will receive a guaranteed payout, which they can use for anything they need, such as paying funeral fees, medical bills, nursing facility expenditures, mortgage payments, rent charges, or putting money down for the future.
J. Archer Insurance Group has multiple policy options that you can choose from if you have been turned down for life insurance coverage in the past. With guaranteed issue/acceptance life insurance, you are able to get the coverage you need, despite your age or any possible health conditions you may have.
If you need a quality guaranteed issue life insurance policy, contact our insurance professionals at the J. Archer Insurance Group. We can explain all of the different types of policies so you can choose the right one for you.