Guaranteed Issue Life Insurance
Is Guaranteed Issue Life insurance Right for You?
When you are shopping around for life insurance, you will come across “Guarantee issue.” At the onset, it looks like a great life insurance option because it does not require any medical exam. It does not ask you any health questions as well. All you need to do is apply and you will surely be approved.
The insurance provider of this type of policy takes on a high risk thus you will be paying more for this type of coverage than other life insurance coverage.
Read on and learn more about the guaranteed issue life insurance. When you are done, you will be equipped with all the information you need to decide if guaranteed life insurance is right for you.
Guaranteed Issue Insurance
A guaranteed issue life insurance policy, also known as a guaranteed acceptance policy, is insurance coverage that does not take into consideration your financial or health status. It is best suited for individuals between 50- and 85 years old. Some insurance companies like Great Western have a minimum age of 40.
The guaranteed issue does not take into consideration health issues when computing the cost of your insurance coverage. If you are 50 years old and in perfect health, the cost of your insurance coverage will be the same as a 50-year old with numerous health conditions.
Guaranteed issue life insurance was designed for individuals with numerous health conditionals. It has been popular with individuals who have of late been diagnosed with cancer or other high-risk or uninsurable health conditions.
If you, however, are in good health, a final expense policy may be the right choice because it is much cheaper.
Guaranteed Issue Life Insurance Client Base
You are sure to get approved for a guaranteed issue life insurance if you are between 50 to 85 years old, notwithstanding your final or health history. It is a popular option for individuals who are considered high-, thus it is more expensive than other life insurance coverage.
You are considered high-risk if:
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You have been diagnosed with a serious illness (e.g. cancer)
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You are engaged in dangerous hobbies or professions (e.g. deep-sea diving or skydiving)
How Guaranteed Issue Life Insurance Works
If you are a high-risk individual, you are qualified for a guaranteed issue policy. Guaranteed acceptance products come with a 2-year graded benefit. This means your beneficiaries are not entitled to the full coverage amount of your policy within the two-year period.
During the two-year period your beneficiaries will instead receive the amount of your total paid premiums plus 10% of the said amount.
A guaranteed issue life insurance has a maximum coverage of $40,000. This amount is enough to cover funeral costs, pay off any debt, and leave a small amount to the beneficiaries.
To know how much you need for funeral costs, a funeral is obliged by the Federal Trade Commission to provide you with the cost of your desired type of funeral.
Pros and Cons of Guaranteed Issue Life Insurance
There is no perfect life insurance coverage for everyone, thus the Guaranteed Issue Life Insurance has its own set of pros and cons.
Pros
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No medical examination required. You will not be asked about any current health conditions.
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Your beneficiaries will be entitled to $2,500 to $40,000.
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You can qualify for this insurance coverage even if you have poor financial or health history.
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This insurance policy becomes immediately active on the same day you availed of it. This feature of course varies among life insurance companies.
Cons
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With the same amount of coverage, it is two to three times more expensive than a final expense life insurance.
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It has a maximum coverage of $25,000 with some life insurance companies offering up to $40,000.
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It has a 2-year Graded benefit period. If you pass before this period, your beneficiaries will not be entitled to the full coverage amount of your policy. They will instead the total amount of premiums you have paid plus 10%.
Unlike regular life insurance policies, the Guaranteed Issue Life Insurance has its unique set of features.
Cost of Guaranteed Issue Life Insurance
As has been mentioned above, a Guaranteed Issue Life Insurance is more expensive than other insurance products because it does not require medical examinations. Neither will you be asked any medical questions. If you are suffering from any medical conditions, this insurance coverage is for you.
Here is a sample of the rates of guaranteed life insurance for men and women. Note that on average, women pay 10%-15% less men.
How to Avail of a Guaranteed Issue Life Insurance?
It is relatively simple and easy to avail of a guaranteed issue life insurance. You can get one online. We can also help you find a policy and insurance company suitable for your current situation.
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Purchase Online
Here is how to go about purchasing a guaranteed issue life insurance online:
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Compare rates from the best insurance providers by filling up an online quote form. You will almost immediately have access to the rates of the best insurance companies.
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Compare rates from different insurance companies
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Choose the type of policy you like.
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Submit your application form
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You will get a call from a licensed Aha agent.
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Your agent will record your voice signature ( if you have decided to purchase a policy)
Your agent will answer any questions that you may have before you make the decision to buy. Your insurance policy will only be confirmed once you have given your signature.
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Speak to a Licensed Agent
If you wish to speak with a licensed insurance agent before making the decision to purchase an insurance policy, give us a call at 1-866-816-210. Our licensed Aha agent will be more than willing to assist you. He will answer your questions and recommend the best insurance company based on your current situation.
Once you have purchased a guaranteed issue life insurance, your coverage policy will take effect in less than 48 hours. With some insurance companies, your coverage policy takes effect on the same day.
Your guaranteed issue life insurance goes through a simple and fast underwriting process because there is no medical examination no health issues to evaluate. While your coverage policy will take effect almost immediately, it comes with a graded benefit period.
A graded benefit period is the number of months or years wherein your life insurance policy will not pay the full coverage amount of your policy.
If the insured passes away during the graded benefit period, his beneficiaries will only receive the amount equivalent to all his paid premiums plus 10%. A guaranteed issue life insurance usually has a 2-year graded benefit period.
Best Guaranteed Issue Life Insurance Companies
Not all high-performing term life insurance companies have high-performing guaranteed acceptance products. Some life insurance companies do not even offer this product.
Based on our thorough analysis and considerable experience, we believe that AIG, Gerber, and Great Western are the best guaranteed issue life insurance companies.
Here is a comparison of their rates.
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AIG
AIG offers a guaranteed issue life insurance for individuals between 50 to 80 years old. You are never disapproved regardless of your health condition. Your application is processed within 15 minutes. This life insurance company offers policies with coverage of from $5,000 to $25,000
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Gerber
Gerber offers guaranteed life insurance for individuals between 50-80 years old. The application process is easy and simple because it does not require a medical examination. You will also not be asked questions about the current state of your health, thus your acceptance is guaranteed. You have a choice of coverage from $5,000 to $25,000
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Great Western
Great Westerns offer the guaranteed issue life insurance to individuals between 40 to 85 years old. This life insurance company has a coverage limit of 40,000. In some circumstances, it can reach as high as $48,000. They offer the guaranteed issue life insurance to individuals between 40 to 85 years old.
The guaranteed issue life insurance offered by Great Western is more expensive than AIG or Gerber becomes if you can avail guaranteed acceptance coverage of as much $48,000 if you are able to answer three medical questions.
The guaranteed acceptance life insurance of Great Western comes with these added benefits.
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Children’s Insurance Benefit Rider which allows you to avail of a life insurance policy for a dependent child or grandchild for only $1 a month with coverage of $25,000.
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Accelerated Death Benefit which allows you avail of your policy’s current value if you have been diagnosed with a terminal illness and with less than 12 months to live.
AIG or Gerber does not offer any of these benefits.
Alternatives to a Guaranteed Issue Life Insurance
Depending on your age and current health, you can opt for a term life insurance, accidental death insurance, or final expense life insurance instead of a guaranteed issue life insurance.
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Term Life Insurance
This life insurance product is for individuals 55 years old or younger. To qualify for some types of this term policy, you do not need an evaluation of your financial or medical public record.
This life insurance product is 3 to five times cheaper than a guaranteed acceptance policy with the same coverage provided you are with average to excellent health. It is the most popular life insurance policy for this age group.
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Final Expense
This life insurance product is for individuals 55 years old and older with average health. Similar to guaranteed issue, it is a whole life policy where you remain insured provided you are updated with premium payments.
This life insurance product is ideal for healthy seniors. It is a popular insurance product for this age group because it offers a coverage amount of up to $100,000 which is higher than guaranteed issue policies.
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Accidental Death
This life insurance product is ideal for high-risk individuals of any age. It is affordable and is available to anyone notwithstanding financial or health history.
You do not need to undergo a medical examination to qualify for this life insurance product. Your public records will, however, be checked and you will need to answer some health questions.
Beneficiaries of this life insurance product only get paid when an accident is the cause of death of the insured individual. According to the CDC, an accident is often the cause of death for individuals 44 years old or younger.