Companies that offer guaranteed issue life insurance policies seem to advertise on TV frequently. The ads usually show an older couple or a couple of older friends who discuss their need for life insurance but worry that they can’t buy coverage because it will cost too much or decline them over some health issue. It is true that most big insurance companies offer guaranteed issue policies that don’t even ask health questions, and they might provide the right solution for some folks.
If you would like to compare rates and life insurance companies, we can offer you instant quotes for guaranteed issue life policies. It should take seconds to complete the quote form, hit the submit button, and see your own personalized quotes.
What is Guaranteed Issue Life Insurance?
Before discussing the details of guaranteed acceptance policies, it’s important to understand what these policies are. This is a quick overview:
- They are whole life policies that usually have a fairly modest face value.
- They do not require the answers to any health questions, so anybody who qualifies can get accepted.
- Because the policy death benefit is fairly modest, the premiums are usually affordable.
Advantages of Whole Life Insurance
Whole life insurance gets its name because it provides coverage for an entire lifetime. That is, it provides coverage as long as it is paid for or paid up. However, it is very different than term policies that only last for a specified length of time, called the term.
Whole life also has a cash value that can also grow and create an asset that might be used while the policy owner still lives. In fact, the Wall Street Journal had an article, “Life Policies: The Whole Truth,” and this article explained how many people are turning to whole life in this age of uncertain investments. Of course, all companies are different, but many offer rates of two to four percent returns on the cash account, and this is much better than can commonly be found for savings accounts or even CDs.
Finally, some seniors are attracted to whole life because these policies might be sold in a transaction that is called a senior life settlement. With these, investors will pay some percentage of the actual death benefit for ownership of the policy. While they are not the right solution for everybody, they can help some older people make good use of the value of their coverage while they are still alive.
Understanding Guaranteed Acceptance Insurance Policies
People might wonder how life insurance companies can possibly offer to cover people without asking them any health questions. Doesn’t this open the doors to a lot of sick people? There is little doubt that this happens, so insurance companies impose a waiting period that they use instead of doing any health underwriting.
This is how the waiting period works:
- In other words, the insured person must survive for a certain amount of time before the full death benefit will be payable.
- Typically, this waiting period is two or three years.
- If the insured person does not survive the waiting period, companies will usually either refund premiums, often with interest, or pay some portion of the full death benefit.
- Once the waiting period lapses, the policy pays out the full death benefit.
The other thing to know is that this coverage is kept affordable because the face amounts are usually modest when they are compared to other types of life insurance. However, the cost per $1,000 of coverage is usually rather high. Many seniors are still healthy enough to qualify for simplified issue policies that ask a few health questions, and these will be cheaper. Also, with simplified issue, the death benefit will be immediate.
How Much Does Senior Life Insurance Cost?
Rates will vary because of age, location, and insurance company. These are some sample monthly rates that were advertised at the time of publication for a 65-year old man in Ohio:
- $10,000: $55.20
- $15,000: $80.91
- $20,000: $106.61
Typically, these types of policies are offered to people over 50. In some cases, they may be available to senior citizens who are up to about age 85 years old. The main reason people are interested in this kind of coverage is to provide cash for a funeral and associated final expenses. However, since the policies pay a cash benefit, the beneficiary is free to use the money in any way that he or she wants to.
Shop Online for Guaranteed Issue Life Insurance Policies
At BurialInsuranceQuote.org, we can help you compare local rates for guaranteed issue life insurance policies. Just complete the simple form to get started. Basically, you just need to provide your state, gender, age, and the amount of coverage that you hope to buy.