Guaranteed Life Insurance
Guaranteed life insurance is for seniors who can’t qualify for a traditional life insurance policy and can’t pass the medical questionnaire for simplified issue.
There is no exam and an extremely brief application with no health questions.
Virtually all applicants are approved but there is a waiting period of at least two years before the full death benefit pays out.
Benefits of guaranteed life insurance
Again, this type of life insurance accepts virtually all applicants. So, if you’re in dire need of a policy and you can’t pass a medical questionnaire this is an easy way to get coverage.
Here are the other benefits of this policy:
- The premium never goes up
- The benefit never goes down
- Coverage does not expire as long as premiums are paid
- No medical exam
- No health questions
Just like simplified issue or other life insurance policies, guaranteed issue life insurance has riders to customize your coverage. Depending on the company, you may find these available to add to your policy:
- Accelerated Death Benefit — In the event of a terminal illness, policyholders can use the death benefit to cover medical costs in lieu of a payout after death
- Accidental Death — Doubles the payout if death is caused by accident
- Long-term care — If you require long-term care and your health insurer won’t pay for it, this rider will cover the cost.
Is it worth it?
Guaranteed issue life insurance is meant for seniors who cannot pass the questionnaire for simplified issue and have very few options left in terms of covering their final expenses.
So, the death benefit may not be as high as term, but the main benefits with guaranteed issue is that, unlike term, the benefit never expires and the premium never goes up.
It is also much more flexible than prepaying your funeral expenses.
If you want to make sure you don’t leave your family with the burden of paying for your funeral and burial, this is your best bet.
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