The AIG 2022 guaranteed issue final expense policy offers many benefits to people who would not qualify for a standard issue burial insurance policy. The policy offers terminal illness and chronic illness riders as living benefits and allows policyholders to select any whole face value between $5,000 and $25,000 for the death benefit. The coverage has no set end date and lasts for life as long as you pay your premiums. Your costs will vary based on the face value you choose, your gender, your age, and your state. This policy is an excellent choice for people who would say “yes” to at least one of the health questions typically asked on standard issue burial insurance policies.
What Is AIG 2022 Guaranteed Issue Whole Life Insurance
A guaranteed issue final expense policy is one that asks no health questions, requires no medical exam, and does no medical underwriting. You are guaranteed to be accepted to the policy.
Whole life insurance policies, also called permanent life insurance, cover you for the rest of your life. The policy does not expire at any age (some list age 119).
The AIG Guaranteed Issue Whole Life policy coverage will never decrease, and your premiums are level, meaning they will never increase. The only reason your coverage could stop is if you stop paying your premiums.
This burial insurance policy from AIG is available in every state except New York and is also available in D.C. You can apply for coverage if you are between the ages of 50 and 85 and will be subject to a two-year waiting period.
How Burial Insurance Works
Final expense insurance, used interchangeably with burial insurance, is a type of life insurance policy that has a relatively small face value and is marketed to seniors. This face value is called the death benefit, and its purpose is to help a policyholder’s loved ones pay for the funeral, cremation, burial, or other memorial services at the time of death.
Policyholders purchase burial insurance to ease the financial burden on their loved ones, so they can focus solely on the memorial and processing their emotions when the time comes instead of worrying about funeral home advance payments. Others choose to purchase burial insurance to add to their peace of mind in preparing for the end of their lives.
Final expense insurance policies come at a significantly lower monthly cost compared to other whole life insurance solutions, making them palatable to people with fixed incomes and those who may not have had the opportunity to save or purchase a life insurance policy previously. Some seniors take advantage of these low costs to secure a small sum to leave behind for their loved ones.
While there are many reasons to choose final expense insurance, the primary motivation is to secure the sum of money for their purposes.
About Death Benefits
The death benefit is a face value of your choosing between $5,000 and $25,000. Your beneficiaries will receive a tax-free check for the face amount when you pass away. There is no restriction on how the death benefit payment must be used; your beneficiary or beneficiaries can use the money as they see fit.
The death benefit is intended to pay for your funeral, cremation, or burial costs. A cremation and funeral will cost around $7,000, and a funeral and burial will cost around $9,000. If the death benefit you chose is more than enough to cover the costs of these final arrangements, your beneficiaries are welcome to use the money however they wish.
Two Year Waiting Period
Guaranteed issue plans have waiting periods of two years because the final expense insurance companies do not ask any health questions or do any medical underwriting. The waiting period is to protect the interests of the insurance company. Your policy will not pay out the full death benefit until after the two-year waiting period has passed. If you pass away within the first two years, AIG will refund the amount you paid in premiums plus 10% interest.
AIG will not pay the full death benefit during the two-year waiting period, except in the event of accidental death. If you die due to an accident, the burial insurance will pay your beneficiaries the death benefit in full.
AIG Burial Insurance Living Benefits
One thing that makes the AIG Guaranteed Issue Whole Life Insurance policy unique among guaranteed issue plans is that it offers all policyholders living benefits. A terminal illness rider and chronic illness rider are built into all policies at no extra charge.
Terminal Illness Rider
You are eligible to receive up to 50% of your death benefit early if you are diagnosed with a terminal illness and given a life expectancy of fewer than 24 months. This rider only kicks in after the two-year waiting period has passed.
Chronic Illness Rider
If you become chronically ill and cannot perform two of six activities of daily living, you can receive a one-time lump sum payment. The activities of daily living are the simple activities necessary to function independently, such as feeding yourself, bathing, using the restroom, getting dressed, controlling your bladder and bowel movements, and moving from one position to another and walking independently. These are the functions commonly assessed when a person is evaluated for a long-term care facility.
AIG Guaranteed Issue Whole Life Rates
You can choose any face value for your death benefit between $5,000 and $25,000. The price you will pay for your AIG guaranteed issue whole life insurance policy will vary based on your exact age, your gender, the face amount you select, and the state you live in. The premium rates are slightly higher for males.
A 50-year-old woman would pay $18.92 for a face value of $5,000 or $86.57 for a face value of $25,000. A 50-year-old man would pay $26.96 for a face value of $5,000 or $126.81 for a face value of $25,000. An 85-year-old woman would pay $103.10 for a $5,000 death benefit or $507.51 for a $25,000 death benefit. An 85-year-old man would pay $150.43 for a $5,000 policy or $744.16 for a $25,000 policy.
Who Should Buy the AIG Guaranteed Issue Whole Life Plan
A guaranteed issue burial insurance policy is not necessarily the best choice for every person who wants to purchase final expense insurance. The ideal policy would have a level benefit and no waiting period, but for that, you would need to answer some health questions.
Standard issue final expense insurance policies still do not require a medical exam, but they ask you to answer some health questions and want to know which medications you have recently filled at the pharmacy. These health questions will ask about your history of drug or alcohol abuse, cancer, stroke, heart disease or heart attack, HIV or AIDS, Alzheimer’s or dementia, congestive heart failure, and ask if you are bedridden or hospitalized and if you have been treated for or have taken medication for any of those conditions in the past two years. Most final expense insurance companies will also ask if you have any upcoming surgeries. All of these questions are to assess your risk. If you answer “yes” to one of these questions, you may not be accepted for a standard issue plan and will instead have to purchase a guaranteed issue policy. It is important not to lie about the answers to any of the health questions because if the insurance company finds out that you lied, your beneficiaries will not receive the death benefit.
Who is a good candidate for a guaranteed issue burial insurance policy? Someone with a serious health condition or two who would not have been accepted to a standard issue policy. This AIG plan stands out among guaranteed issue policies thanks to the living benefits, so those who are looking for a guaranteed issue policy would do well with this option.
People who have some of the following health conditions would benefit from the AIG guaranteed issue final expense insurance policy:
- Alzheimer’s or dementia
- Amputation due to diabetes in the last 24 months
- Amyotrophic lateral sclerosis (ALS)
- Had or been treated for cancer in the last 24 months
- Currently living in a mental health facility, hospital, nursing home, or hospice care
- Congestive heart failure with diabetes
- Heart or circulatory surgery in the last 24 months
- HIV or AIDS
- Heart attack in the last 24 months
- Terminal illness with a life expectancy of 24 months or less
- Insulin shock or diabetic coma in the last 24 months
- Been advised to have an organ transplant
- Stroke within the last 24 months (not TIA mini-strokes)
How to Buy AIG Burial Insurance
To purchase this 2022 AIG Guaranteed Issue burial insurance plan, you must either work with an independent agency licensed to sell AIG products or contact AIG Direct. You can complete the purchase with a voice signature or email signature. In either case, the AIG agent will gather all of your necessary information over the phone. Once you sign the form, you will have a printed policy in less than two weeks.
Work with an Independent Agent
An independent agent can help you evaluate your eligibility for various products, whereas the direct company contact can only sell you the AIG product. You want to know that the policy you choose is your best option. An independent agent can help you find that, and you are guaranteed to purchase the AIG guaranteed issue final expense policy at the same price no matter who you purchase it through.
How to Get Immediate Coverage
The only way to get immediate coverage is if you purchase a standard issue final expense policy. That means you need to answer health questions. If you are not sure whether a condition you have will be an issue with the final expense insurance company, ask your independent agent. The odds are, if the health questionnaire does not ask about it, that condition is not a concern of the company, and you will be accepted.
Choosing the Best Final Expense Policy
Finding the right low-cost burial insurance can be difficult. There are a few things you want to look for. Find a reputable and financially stable insurance company. You can check the Better Business Bureau and other agencies to see how they are rated. You also want to find a burial insurance policy that will cover you as soon as possible. No waiting period is ideal, but if you have to answer “yes” to the typical health questions, that may not be achievable. Finally, you want to compare the pricing of different policies to find monthly premiums that are market competitive.
Why Purchase Through an Agency
An independent insurance agent can work with you to understand your needs and your health concerns to easily determine which final expense companies will accept you. You can do all of the research you want on your own to prepare for these conversations, but an experienced agent who has underwritten for other final expense policyholders will know how likely you are to be a good match with a specific company.
It is important that you not choose a guaranteed issue plan if you know you might be accepted to a standard issue plan. Your independent agent will be able to identify whether or not your existing healthcare concerns will limit you from purchasing the policies you want and can guide you to the policy that best fits your situation. Importantly, suppose you do qualify for a standard issue final expense insurance policy. In that case, you must purchase the policy through an agent. You cannot just call the company and ask to sign up for a policy; the insurance company will sign you up for a guaranteed issue policy, and you will have the two-year waiting period you could have avoided.
Take advantage of the knowledge and expertise of independent agents when searching for your final expense policy. Now that you know more about whether the 2022 AIG guaranteed issue burial insurance policy is a match for you, you can confidently discuss your needs with an agent.
Speak with the experts at Senior Life Services. Our team is here to help you find the best possible solution to your coverage needs. Call us today to learn more about what you may be qualified for.