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Guaranteed Issue Life Insurance Policy – Pros and Cons

Guaranteed Issue Life Insurance Policy Reviews

The time has come in your life when you’re going to get serious about life insurance. Maybe you’ve been meaning to purchase a life insurance policy for some time now, but just keep pushing it to the backburner because you have pre-existing medical condition or you just know you aren’t in the best shape. Maybe these factors have led you to believe a life insurance company won’t underwrite a policy for you—or if they do, the premium will be super expensive. That’s why you need to know about guaranteed issue life insurance policies.

Guaranteed Issue Life Insurance Policy – Pros and Cons

What is a Guaranteed Issue Life Insurance Policy?

Well, kind of like the name implies, a guaranteed issue life insurance policy is a life insurance policy you’re guaranteed to be issued.

Who is eligible for a guaranteed issue life insurance policy?

Eligibility for a guaranteed issue life insurance policy will vary from company to company, however, in most instances, the main requirement is that you are age 45. And the best burial insurance for seniors typically can be written up to age 80 or 85.

Will I be asked to take a medical exam?

No. You will not be asked to take a medical exam or answer medical questions when you apply for a guaranteed life insurance policy. In fact, this is the biggest reason people opt for a guaranteed life insurance policy. Even if you have a medical condition or are generally unhealthy, you will still be able to get insured with a guaranteed issue life insurance policy.

How much coverage does a guaranteed issue life insurance policy give me?

Again, the amount of coverage offered in a guaranteed life insurance policy varies, depending on the life insurance company. However, most life insurance companies only offer guaranteed issue life insurance policies worth up to $25,000.

What is a Graded Death Benefit?

Most guaranteed issue life insurance policies come with what is known as a graded death benefit. A graded death benefit basically means that if you die within the first two years, the beneficiary of your policy will only receive the amount you’ve put into the policy (plus interest), not the entire amount. For example, if you have paid $100/month for 10 months, your beneficiary will receive $1000+interest.

Why do Guaranteed Issue Life Insurance Policies come with a Graded Death Benefit?

Since a life insurance company asks very few questions before issuing a policy a graded death benefit helps protect the life insurance company. If you find out you are terminally ill and only have 6 weeks to live and there were no such thing as graded death benefits, then the first thing you would do is buy a life insurance policy to make sure your beneficiary immediately got $25,000. That’s what a lot of people would do, and unfortunately, this would probably make the life insurance company go broke!

How do I know if my illness/current state of health will really penalize me in another type of life insurance policy?

That’s a great question! Every life insurance company assesses every medical problem differently, resulting in endless possibilities! There just might be a life insurance company out there that won’t have a major issue with your type of medical problem. In that case, another type of policy may be better.

Are you a diabetic? There is a life insurance company that will offer you a great term life insurance policy.

Do you have heart problems? Some life insurance companies won’t charge you extremely high life insurance premiums.

The best way to know if you will be better off with another type of life insurance or if you should opt for guaranteed issue life insurance, is to call Just Bury Me for a free consultation.

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