What Is Guaranteed Issue Life Insurance Coverage

A Policy With No Medical Examination | Coverage That Cannot Denies You - Guaranteed Issue Life Insurance

Does getting your life insurance make you worried? Some people fear medical exams because you can’t tell yourself how healthy you are. The medical exams are part of the life insurance application process, which makes people stressed out. 

If you’ve been thinking of this, we always tell our clients to ask their agent for more insurance options. If going through medical exams exhausts you, may guaranteed issue life insurance is the right coverage for you. Guaranteed issue is a great option for people who do not want to undergo a traditional insurance process.

What Is A Guaranteed Issue?

Also known as “guaranteed acceptance life insurance” is a type of life insurance policy that does not require answering medical questionnaires or medical exams. It is a policy that is guaranteed to be issued to every applicant, this simply means regardless of your health and well-being, you cannot be denied or turned down by an insurance provider.

In spite of that, this type of policy generally offers low death benefits options with higher than normal premiums. In addition, guaranteed issues have a waiting period, meaning if the policyholder dies during the waiting period his beneficiaries will not receive the death benefit.

How It Works

You can get these policies to your insurance company as long as you’re within the allowed age range when you apply. The typical age range qualifies for this policy is 50 to 80 years old. But you can still get guaranteed issues even if you are outside this range with some insurance company, however, you will have limited options.

Aside from the age requirements that will determine your eligibility, guaranteed issues do not require the same level of the application process as a result the cost of guaranteed life insurance coverage is typically higher than a policy with a medical underwriting process. And that is the settlement for eliminating the medical exams and questionnaires.

Understanding Graded Benefits

Furthermore, one of the main drawbacks of this policy is that your beneficiaries would not receive the full benefits until the policy has been enforced for a specific length of time. Depending on the insurance company the waiting period may normally be between one or two years, in some companies reaching up to three years.

If the policyholder dies during the waiting period, the insurance company will more likely issue a refund to all the premiums you pay to your beneficiaries in place of death benefits.

No matter what your reason for considering guaranteed issue life insurance is, it is always a good idea to ask for a quote from at least three different companies before choosing a provider, to ensure you’re making the right decisions.

Despite all the processes of application in getting your life insurance, the decision of acquiring one is something you never postponed or canceled. Life insurance is an important investment for your well-being. It is good to know that whenever this happens to you, you have backup insurance you can count on.

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