Guaranteed life insurance plans usually have a waiting time before the benefits are effective. Highly unlikely is the issue of guaranteed life insurance with no waiting period. Most policies can be fully operational within two to three years.
If the guaranteed-life insurance policyholder dies before the waiting periods are over, the beneficiary won't receive the death benefits. The insurance company might return all premiums paid to the beneficiary along with interest.
An application for guaranteed-issue life insurance does not require you to answer any health questions. It comes with a small death benefit that will help your family pay your funeral costs and other medical bills.
Because guaranteed issue life insurance covers individuals with specific insurance risks, it is the most costly type of burial insurance. The monthly cost for a 60 year-old is upwards at $150. However, death benefit amounts can be quite low, reaching as high as $25,000.
Individuals with pre-existing health conditions are not eligible for guaranteed issue insurance. Insurance policies are different from one insurer to another, but many may offer coverage for people with chronic conditions. Learn more about your options for people with pre-existing conditions.
The category of policies called "burial insurance" includes guaranteed issue life insurance. Permanent coverage is ideal for people between the ages 45 and 80, as well as those who cannot qualify for standard life insurance due to a terminal illness or severe medical condition.
Most policies that offer life insurance require some level of medical underwriting. To evaluate the applicant’s health, medical underwriting involves the results from blood tests, physical exams, and pharmacy history. An underwriter is a specialist in interpreting and diagnosing health conditions. He will either approve or decline your insurance application. The underwriter will also assign a rating that determines the amount of insurance premium the applicant will be paying. A medical underwriter allows customers to pay the most appropriate premiums for their particular health condition. Healthy people usually pay less than sick people.
Guaranteed issue policies don't require the same amount of underwriting information. This means that a guaranteed-issue policy for life insurance is less expensive than a policy with medical underwriting. This is the compromise for removing the need for tests and medical exams.
To get this type plan, you will usually need to be within the required age range. This will vary depending on which company you work with. It is usually between 50 to 80 years old.
To appeal to a particular market, guaranteed issue life insurance offers pros (convenient and no medical exam), as well as cons (small benefits amounts, graded deaths benefits). Seniors with low income and severe health issues, such as those with family members or seniors who have limited resources, may find it appealing to pay their funeral expenses for $10 per month.
A life insurance agent can help you shop the market, especially for people who have health issues. Experienced agents will be able to tell you which life insurance companies would accept you based on your medical history.
