What is Guaranteed Issue Life Insurance?
Guaranteed issue life insurance is a type of permanent life insurance policy that requires no health questions or medical exam. There are no health restrictions—no matter your age, gender, lifestyle, or occupation.
It’s designed to be easy to apply for and purchase, making it an ideal solution for people over 50 who might have difficulty obtaining traditional life insurance.
How Does Guaranteed Issue Life Insurance Work?
Since guaranteed issue life insurance is designed to be an easier access policy, it requires fewer application steps than traditional life insurance.
Typically, the application is one page and requires very few personal details. There are no health questions asked and no medical tests are necessary. The terms of the policy are limited compare to those of a traditional life insurance policy.
Coverage amounts are typically capped between $2,500 and 25,000, depending on the policy, but some companies may offer higher limits.
Premiums are generally fixed, so you can lock in your rate and know exactly how much you’ll be paying each month.
It’s also important to note that with guaranteed issue life insurance, there will likely be a two-year waiting period before the policy is active. This means that if the policyholder passes away during the two-year waiting period, their beneficiary will not receive the death benefit. However, the insurer will usually pay out the premiums paid, plus interest on those premiums.
Why Do People Buy Guaranteed Issue Life Insurance?
For those aging over 50 who have been declined for traditional life insurance, guaranteed issue life insurance is a viable option. It is particularly beneficial for those who suffer from chronic health conditions or have been denied coverage due to their occupation or age.
Guaranteed issue life insurance is also an ideal option for individuals who want to leave money behind for their loved ones. Without having to worry about a medical exam or any health-related restrictions, guaranteed issue life insurance can provide peace of mind—knowing that there will be a financial cushion for family or friends after the insured’s passing.
Guaranteed issue life insurance provides an easy and accessible solution for those aged over 50 who cannot qualify for traditional life insurance. With low fixed premiums and no medical tests necessary, this type of life insurance can provide financial protection to individuals and their loved ones.
Although there may be limitations with coverage limits and a two-year waiting period, the peace of mind that a guaranteed issue life insurance policy can provide is invaluable.
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