You can get guaranteed issue life insurance policies, or life insurance that guarantees your rate and coverage amount will remain level for set period of time.
Guaranteed Issue Life Insurance is coverage that cannot be declined for health reasons if you meet the age requirements. These life insurance policies usually have rather narrow age guidelines, low maximum face amounts of life insurance, and offer graded death benefits during the first 1-3 years for death due to natural causes, but there is usually full coverage for accidental death.
For example, if the insured person died due to health reasons during the first 1-3 years (depending on the policy) of the life insurance policy, the beneficiary would receive a reduced death benefit which is often a return of premiums paid, plus a little extra for interest on that money.
If death of the insured person occurs after the graded period ends, the life insurance policy pays the full face amount as a death benefit. It usually pays 100% of the face amount from day one for accidental death of the insured.
There may be different guarantees on the premiums you pay for your coverage.
Some guaranteed issue life insurance policy premiums are guaranteed not to increase for life. Some have premiums that increase every year, and others are in between, where they increase every 5 years.
Keep in mind that you will want to be able to afford this life insurance policy in the years ahead, and get lifetime guaranteed level premiums, if possible, so you can budget for the cost of your life insurance, especially if you are on a fixed income.
Guaranteed issue life insurance can be a good choice for people who cannot qualify for any other type of life insurance policy. Even if death is anticipated within the first two years you are to be insured, the return on your premiums is usually better than any savings account may pay on that money. And, many people are often able to survive serious diseases beyond what is expected when first diagnosed with a serious health issue.
Another type of life insurance is guaranteed life insurance where the premiums you pay, and the face amount of life insurance coverage are guaranteed.
This means that the premium cannot go up, and the face amount of life insurance protection you have cannot go down, for a certain period of time.
In Term Life Insurance, the guaranteed level period is usually for the "term" of the policy, which may be for a period of 5, 10, 15, 20 or 30 years, usually. In Universal Life Insurance , the guaranteed period can be for life, or it can be for a set number of years.