Guaranteed issue life insurance you cannot be turned down for coverage.
The guaranteed issue life insurance policy is a good fit for elderly seniors or those that have serious health issues that are unable to be approved for a conventional life policy. For these individuals a guaranteed issue life policy may be the only way to acquire coverage.
These policies should not be confused with a simplified issue life policies. The simplified issue policy will ask medical question, but will not require a medical examination. Plus depending on your medical history and what are your answers to the medical questions you can be turned down for coverage.
Guaranteed issue policies are sold without any medical underwriting, with some limitations. They usually have smaller face amounts fro, $2,000 to $30,000. This is due to the fact that they are designed for a specific purpose, basically to pay for funeral expenses. Also, most all insurers offer issue policies to a specific group of consumers, such as those between the age of 50 and 85.
One catch to a guaranteed issue policy is called the graded benefit. This benefit was introduced to reduce insurance fraud. The policy only pays out a small portion of the death benefit if you die within the first few years (such as your accumulated premium plus interest or a smaller portion of the face amount). This protects the insurer from issuing policies on people that know they are dying soon and buying as much insurance as they can. These limitations limit the financial risk to the insurer. Without this provision in the policy insurers could not offer this protection at all. But, most would pay the full face amount in the event that death was due to an accident.
Even though you may have some health issues you may pay less with an underwritten policy. This is were we can help you determine the best policy for you and your unique situation. Find out what is best for you call now or take a minute to fill out the inquiry form on the left hand side of this page and an agent will contact you shortly to help determine with you the best policy to fit your needs and budget.