This is a policy essentially for people with poor health.
There is a waiting period. If you die during the waiting period, your insurance company will pay back all your insurance premiums to your beneficiaries with 10% more.
If you need life insurance and can’t qualify for a plan with underwriting, guaranteed life insurance will at least give you some coverage and death benefits.
When you’re choosing what type of life insurance to purchase, it’s essential to consider which factors are most important to you.
Whether you want a low monthly premium or the convenience of bypassing a medical exam, consider why you want a guaranteed acceptance life insurance policy.
Most people choose guaranteed life insurance based on at least one of three things:
- It’s the only available option
- It’s cheaper than other options
- It’s quick and convenient
Below is a list of reasons why other life insurance policies might have denied coverage:
- Terminal illness.
- Organ or tissue transplant.
- Dialysis.
- Alzheimer’s or Dementia.
- Nursing home resident.
- Cancer.
- AIDS or HIV.
- Chronic disease due to which you are in a wheelchair.
- These might keep you from purchasing coverage from other policies but should not matter when purchasing a guaranteed whole life insurance.
How to determine if this policy is right for you?
There are essentially two instances where a guaranteed whole life insurance policy may not be the best route to choose.
One, if you live long enough that your premium amount exceeds the total death benefit you would get. This is not a good idea for obvious reasons. You will be paying more to the insurance company than you will get. It will end up with you in severe loss.
Two, if you buy an expensive guaranteed whole life insurance policy when you could have bought other life insurance policies with lower rates or one that has medical underwriting.
Policies that have medical underwriting usually have lower premiums since people with considerably good health buy these policies and there is less risk.
Guaranteed issue life insurance isn’t a policy specifically designed for seniors, but older people tend to get attracted by it since it has no medical exam. The age limit is usually from 40-90 years of age.