Your application will be processed quickly once you have submitted it. There is no medical exam or any other reports that the insurer needs to review. When you sign and return the policy, and pay your first premium, your policy becomes effective. You can get assistance from a Policygenius agent.
Guaranteed-issue life insurance is a form of whole life insurance that allows you skip medical questions and undergo a physical exam. You might also hear it as guaranteed acceptance life insurance.
Graded death benefits are a common feature of guaranteed life insurance companies to protect against severe illness.
Let's say you die within the first two to three years of your policy. Your beneficiary may receive a refund of your premiums and interest. The interest paid can vary from company to company, but could be anywhere between 10% and 30%. The policy will pay your beneficiaries the entire coverage amount if the death results from an accident such as a car accident.
Guaranteed life insurance plans generally have a waiting period before benefits take effect. It is rare to receive guaranteed life insurance without waiting periods. These policies usually function fully after two to three years.
The application for guaranteed issue insurance does not require any medical exams or health questions. You will receive a small death benefit to help you and your family with funeral expenses or medical bills.
Imagine that you are unable to live for the policy's first two- or three year period due to any other reason than an accident. In such a case, your beneficiary would receive the full amount of the premiums paid plus interest. Although interest rates paid vary depending on the company, they can range from 10% to 30%. If your death is due to an accident (e.g. a car crash), the policy will pay all the coverage amount to your beneficiaries even if it was purchased recently.
Certain guaranteed issue policies have cash value which you can access by taking out a loan. You will lose your right to receive the cash value of the loan if you don't repay it in full before your death. Additionally, the payout to your heirs depends on the coverage amount, not the cash value.
Both types of burial insurance include guaranteed issue and simple issue life insurance. But, guaranteed-issue insurance is better for seniors who can't be turned down for other life insurance.
For seniors, or those who cannot qualify for traditional life insurance but are at moderate health risk, simplified-issue life insurance is best. The coverage limits are slightly higher and require a complete medical questionnaire.
Consider if your policy has a graduated benefit. In that case, you would die naturally within the first two year of your coverage. Your beneficiaries receive 110% of any premiums paid to the policy. Your heirs are entitled to a 100% refund in the event that you die by suicide or from an accident within the first 2 years. You would pay $100 for premiums. Your beneficiaries would get $100-$110 depending on the cause.
Both simplified and guaranteed issue life insurance options are available for burial insurance. For seniors or those who can't get any other type of life insurance, guaranteed insurance is the best option. Nearly everyone is accepted.
