There are pros and cons to guaranteed issue life insurance. Paying funeral costs can appeal to seniors with limited income, severe health conditions or family needs for around $10 per month may be attractive.
Guaranteed issue coverage amounts range from $10,000 to $25,000. A guaranteed issue policy is usually purchased for a small amount of final expenses. This can include a funeral, medical bills or small debts.
Most life insurance companies will refund your premiums to your beneficiaries, if you are unable to pay the death benefit due to illness or injury within the first few years. Investopedia says that this prevents people with serious illnesses from receiving large payments immediately.
You will pay higher premiums. However, your beneficiaries would not be eligible for a complete death benefit until your policy is in force for a specified time. This can vary depending on the insurance company. This is what's known in insurance as "gradual benefits".
One category of policies is called burial insurance. Guaranteed-issue life insurance falls under the umbrella of guaranteed issue insurance. Permanent coverage is for people between the age of 45 and 80. It's also best for those who have a terminal or severe illness that prevents them from being eligible for standard life insurance.
Guaranteed issue insurance is different from term or whole life insurance. There are no health questions or medical examinations required for the application. A small death benefit can be added to your policy, which will help pay funeral costs and medical bills.
Many guaranteed issue insurance companies require that applicants be at least 40 years old in order to apply. After 80, they won't offer new coverage.
This type life insurance is available to people who have certain medical conditions and cannot afford other types of life coverage.
