Guaranteed Issue Life Insurance

Guaranteed Issue Life Insurance

Last updated November 30, 2018

No matter your health conditions or history, this life insurance is guaranteed and you won’t have to take any medical exams.

Smaller contract payouts could result in you paying more in premiums than the total payout upon death.

Individuals over 50 that need a guaranteed acceptance life insurance policy to help pay for so-called “final expenses.” The key to a guaranteed acceptance contract is that it’s guaranteed. Everyone who applies will get coverage. Having said that, there are details you should be aware of before purchasing it.

Guaranteed Issue Life InsuranceAs the name suggests, a guaranteed issue life insurance policy, also called a guaranteed acceptance policy, is guaranteed. It’s a policy that will provide coverage for anyone who applies for it, with few questions asked. But, there are details you should know about this type of life insurance for seniors. Below are the basics: what it is, who it’s for, and whether it’s right for you.

Guaranteed Acceptance Life Insurance?

Upon the insured’s death a Guaranteed issue life insurance is a policy that will provide cash .  The insurance carrier offers this type of policy to any applicant. Health history won’t matter.

Who Is Best Served  By A Guaranteed Issue Life Insurance Policy?

GILI- is usually for individuals over the age of 50. This includes seniors and people with health issues. Many people who currently don’t have life insurance through their company will buy this insurance. Alternatively, this will be purchased by or for those whose health prevents them from obtaining traditional insurance.

Compare Our Guaranteed Acceptance Life Insurance Companies

(Rates are for example only and may change based on age and location.)
 
AGE50 – 8050 – 8525 – 8050 – 80
COVERAGE AMOUNT$5,000 – $25,000$5,000 – $25,000$5,000 – $25,000$2,000 – $30,000
MEDICAL EXAM REQUIRED?NoNoNoNo
ACCELERATED DEATH BENEFITS?YesYesYesYes
GRADED BENEFIT2 years (refunded premiums plus 10%)2 years (refunded premiums plus 10%)3 years (refunded premiums plus 6%)3 years
PRICE$56.55 per month$63.17 per month$79.87 per month$131.82 per month
 
 

Guaranteed Issue Life Insurance: Positives

Guaranteed Issue Life InsuranceThe biggest thing in favor of this kind of policy is that medical history isn’t a factor. Guaranteed life insurance contracts:

  • Are much easier to buy than many other types of policies
  • Medical exams or questions not required
  • Are approved and go into effect quickly

Guaranteed Issue Life Insurance: Negatives

Having said that, you must expect some of the positives to be offset by some negatives.  Therefore, a insurance carrier like United Home Life would’nt know to much about you, the following may be true:

  • The amount of coverage you can buy is much less than other kinds of insurance
  • Typically this life insurance policy is more expensive

In other words, you’re going to get less bang for your buck. Furthermore,  the higher premium cost and having the lesser amount of coverage, it’s possible that more money goes out the door than comes in at the end.

Deciding If Guaranteed Issue Life Insurance is Right for You

Once you decide on the coverage amount, for as long as the policy is in force the affordable premiums are guaranteed. Consequently this is independent of the rising cost of living, so premiums remain the same over the course of years, if not decades.

US citizens and legal residents between 50 and 80 receives a graded death benefit for the first 2 years of coverage. Likewise, if one would die within the first 2 years of the policy contract for any other reason than an accident, all the premiums plus interest of 10 percent will be paid out to the beneficiary. The full death benefit will be paid out if death is due to accidental causes.  If after the 2-year graded death benefit period, they should die for any reason, the full benefits will be paid out to the beneficiary.

Is it a Good Idea to Buy Guaranteed Issue Life Insurance?

Guaranteed Issue Life InsuranceThis guaranteed issue type of policy is great if you can’t obtain other types of coverage or if you need to get coverage quickly.

The application is a simple process. There is No need for a medical exam. You won’t have to fill out any questionnaires. Acceptance, as said in the name, is guaranteed. In addition, if your spouse, would happen to between 50 and 80, they too can get up to $20,000 in guaranteed benefit protection as well.

If you still have questions or concerns, contact a licensed insurance professional at Coach B. Life Insurance at 1-800-342-1537 to get help finding the best options available to you.