guaranteed issue life insurance with no waiting period
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It is also known as guaranteed acceptance insurance.
Guaranteed issue life insurance with no waiting period - Sunlife
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- Sunlife
It is also known as guaranteed acceptance insurance.
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.
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.
Guaranteed Issue Life Insurance is a type whole-life insurance policy that allows for you to skip asking questions about your health and have a medical exam. It is sometimes referred to by other names such as guaranteed acceptance insurance or guaranteed life.
The coverage levels of guaranteed issue life insurance are often inadequate, usually between $10,000 and $25,000. Due to the lack of coverage, guaranteed issue insurance policies are often bought for final expenses such as funerals, medical bills and small debts.
Life insurance policies may offer insurance coverage for as high as one million dollars. However, guaranteed issue policies may limit insurance coverage to $50,000 or even $100,000.
You can probably save substantial money by buying a more traditional approach, unless you have severe medical conditions that make purchasing other policies impossible. For example, a 70 year old female could pay $18,700 over 10 years for a guaranteed life insurance policy with $20,000 of coverage. Over ten years, a $20,000 life insurance policy would cost her $12,000.
This type insurance is great for those who have health conditions that would make it prohibitive or impossible to afford life insurance.
For those with pre-existing diseases, guaranteed issue insurance may not be the best option. Though policies differ from one insurer to the next, some policies may include coverage for those with chronic illness. If you have a condition that is pre-existing, find out what options you have.
While you can't be denied coverage for health reasons, most policies include a waiting period, often 2-3 years, before the full death benefit is paid out. If you die during this period, the beneficiaries may only receive a refund of premiums paid, plus interest.
Eligibility typically depends on your age, with policies often available to individuals between the ages of 50 and 85. The requirements may vary by insurer, but medical underwriting is not part of the application process.
Premiums for guaranteed issue life insurance tend to be higher than for policies that require medical underwriting, since insurers assume more risk by offering coverage without health questions. The cost will depend on factors such as your age, gender, and the amount of coverage.