There are various types of life insurance policies. The easiest life insurance to qualify for is called guaranteed issue life insurance. And just like the name implies, qualifying for this coverage is guaranteed. The question then becomes, is this the right policy for you?
Guaranteed Issue Life Insurance
Before anyone can decide if a “guaranteed issue” life insurance policy is right for them, they’ll first need to understand just what a guaranteed issue life insurance policy is and what are some of its features that one needs to be careful about before purchasing a guaranteed issue life insurance policy.
Another consideration is whether you should choose simplified issue or guaranteed issue life insurance.
After all, when it comes right down to it, this coverage can be a great option to consider when looking to purchase final expense or burial insurance. However, like everything in life, these policies will have both positive and negative aspects about them.
Always one to look at the bright side of things, we at JustBuryMe.com will first point out the positive features of guaranteed issue life insurance.
Pros of Guaranteed Issue Life Insurance
- If you are alive, a US citizen and fall within the allowed ages to purchase a guaranteed issue life insurance policy, you will be APPROVED!
- You will not have to take any medical exam nor answer any medical questions.
- These policies will also typically last your entire life, so it’s impossible for you to outlive the policy death benefit period.
Or in other words, if you’ve been told that you can’t qualify for traditional term or whole life insurance do to some pre-existing condition, just know that you may still qualify for “guaranteed issue” life insurance, which is typically considered final expense burial insurance.
You’re Qualified, Even if:
- I’ve been diagnosed with cancer?… Yes.
- I’m currently on Social Security Disability?… Yes.
- I’m HIV positive?… Yes.
How is this possible?
Ok, so here’s the catch when it comes to a guaranteed issue life insurance policies. Because the final expense and burial expense insurance companies aren’t going to require a medical exam or ask you any health questions, they will have what is called a “Graded Death Benefit” built into the policy.
What is a Graded Death Benefit you ask?
Graded Benefit DEFINITION: Graded Death Benefit is a clause that the insurance companies will include in any guaranteed issue policy to help protect themselves from insuring a really ill applicant, which precludes the full payout of the death benefit in the initial two or three years of the policy.
Now these Graded Death Benefits will typically vary from one insurance carrier to the next but they will all typically include some period of time during which the new life insurance policy will not cover the insured for NATURAL CAUSES of death.
One of the best guaranteed issue life insurance policies out there currently has a graded death benefit for the first 2 years after the policy goes into force.
During this period of time, the life insurance policy will pay out in full in the event that the insured dies from an accidental cause (such as: slip and fall, motor vehicle accident, victim of crime, etc, etc…) but the policy will not cover the insured in the event of an natural cause of death during that first 2 year period.
So should the insured die from a natural cause (cancer, heart attack, stroke, etc, ect…) this particular insurance carrier issues a full refund of all premiums paid by the insured to the insured’s beneficiaries prior to the policy going fully in force. This insurance carrier will also add an additional 10% interest payment to this refunded amount.
OK, so nobody likes it when their insurance policy has a “Graded Death Benefit” attached to it.
JustBuryMe.com understands that, but what if:
- You have a serious pre-existing condition?
- What if you can’t pass a medical exam or you have to answer “yes” to one of the many medical questions that life insurance companies screen for?
- What if you’ve been told that given your current health condition, you can’t qualify for life insurance?
Well, in cases like these, we just have to accept that in order to be able to purchase life insurance, there’s going to be a Graded Death Benefit.
From there, it’s just a matter of:
- Finding an affordable guaranteed issue life insurance policy option.
- Combined with a short Graded Death Benefit period!
And this is what we do at JustBuryMe
Unfortunately, when someone simply requests an automated quote from a computer screen, too often all that is generated is a list of prices not Graded Death Benefit time periods!
For this reason, and many, many others, if you believe that you’re going to need a guaranteed life insurance policy, we strongly recommend you contact us directly prior to completing any application.If you have more questions about guaranteed issue life insurance or are curious what type of insurance you can qualify for, please give us a call today.