There are many types of insurance available in the marketplace today that it can be confusing keeping them straight. We will help you! Today we will explain everything you should know about guaranteed acceptance life insurance.
Some General Info
Here are some facts about these policies...we'll explain more later.
- You can purchase from age 50 to age 80.
- This is a graded benefit (more later).
- The premium never changes.
- There are no health questions on the application.
- Policies can range from $5,000 to $25,000.
How Does the Policy Work?
There are no health questions on the application, so as long as you in the age range, you can purchase a policy. If you wanted more than $25,000 of coverage you would have to buy from multiple companies.
These guaranteed issue life insurance policies should be the last resort of any senior looking for coverage. If you can qualify for other types of coverage, they will be less expensive. Remember, the insurance company:
- Isn't asking any medical information.
- Isn't checking any prescription databases.
- Isn't checking your MIB listing.
- Will approve your application!
They will insure anyone, and consequently the price will be a bit higher. Additionally, and very important, this is a graded benefit. This means if the insured passes away in the first two to three years the beneficiary will not receive the face amount. They will receive the premiums paid plus interest or in some cases an increasing percentage of the face amount paid each succeeding year. The only exception is if the insured passes away from an accident, then the full face amount will be paid out.
Why Would I Want This Type of Policy?
We are all going to die someday. That's a fact and no way of getting around it! If you can't qualify for other coverage you still have the same end of life issues to consider.
Who will pay for your:
- Funeral expenses
- Final medical bills
- Outstanding debts or loans
- Newspaper death notice
- Credit card balances
- Any other expense your estate has
Ask any beneficiary and they will tell you that they knew they didn't have to worry about paying for their loved ones final expenses. It will give you and your family peace of mind.
What Other Insurance Options Are Available?
As we said, if you can qualify for a different kind of final expense coverage it will have a lower premium.
- Simplified issue whole life coverage- is permanent coverage. There is no medical exam necessary. You do have to qualify by answering a number of health questions. The insurance company will check prescription databases and the MIB. These policies are available in amounts of $2,000 up to $40,000 of coverage. These are generally available up to age 80.
- Universal life insurance- is permanent coverage too. This is a fully underwritten policy,which means you will have to have a paramedical exam including blood and urine testing. The insurance company may order your doctor records as well. These policies are less expensive that the simplified issue policies. The lowest amount of coverage is $25,000. These policies are available up to and including age 90.
- Term life insurance- lasts for a specific period of time. We don't recommend term life if you are looking at coverage for final expenses. You can't be sure it will still be in force when you actually need it!
The Bottom Line
Guaranteed issue policies are a great option if you can't qualify for any other type of life insurance coverage. Don't know what you can qualify for? Talk to an independent life insurance agent. They will have many companies to choose from and help you determine which type of policy will best meet your needs and which company will give you the best price. After all, you will paying these premiums for the rest of your life!
Want more information about the different choices available? Click the link below and get our free final expense e-book.