There are pros and cons to guaranteed issue life insurance. Paying funeral costs can appeal to seniors with limited income, severe health conditions or family needs for around $10 per month may be attractive.
The same information is not required for guaranteed issue policies. The cost of a guaranteed policy of life insurance will be more expensive than one that is medically underwritten. This is the compromise that eliminates the need to undergo medical exams.
It is important to work with a life agent who will shop for you if you have any health problems. Experienced agents will assess your health history to determine which life insurance companies might accept you.
An application and a phone call are usually required in order to buy guaranteed-issue insurance. After you submit your application, an agent might contact you to confirm that you don't have any disqualifying conditions or that you are buying the right coverage.
To protect themselves against the purchase of life insurance by seriously ill individuals, guaranteed life companies often use graded death protections.
Guaranteed issue insurance is different from term or whole life insurance. There are no health questions or medical examinations required for the application. A small death benefit can be added to your policy, which will help pay funeral costs and medical bills.
A 10-year term life insurance policy would provide ten times as much coverage for the same 60-year old. It would cost $60.
You must be at least 18 years old to qualify for this type.
Guaranteed issue life insurance can be a good option for individuals who have difficulty qualifying for traditional life insurance due to age or health issues. However, because of the higher premiums and limited coverage, it is important to consider whether it meets your financial goals and needs.
Eligibility typically depends on your age, with policies often available to individuals between the ages of 50 and 85. The requirements may vary by insurer, but medical underwriting is not part of the application process.
Coverage amounts for guaranteed issue life insurance are generally lower than traditional life insurance policies, ranging from $5,000 to $25,000, depending on the insurer. This is often intended to cover final expenses such as funeral costs.