In order to get life insurance there’s a certain medical condition you need to meet. However, with Guaranteed acceptance life insurance, you don’t need to meet any medical conditions.
It allows anyone to get life insurance without any medical condition requirements. But there’s a catch, not everyone can apply for it, you need to be at a certain age point in life to apply for guaranteed life insurance.
So is it worth getting?
Well, to be honest, it depends on you. If you think that you won’t get qualified for any life insurance due to medical conditions like terminal cancer, then yes it’s worth getting.
However, there are a lot of different factors still in place, that you should know if you consider getting a guaranteed acceptance life insurance.
Here we’ll discuss different factors like what guaranteed life insurance is about, who is it good for, what benefits it provides, and many more, which will help you make a decision for yourself.
What Guaranteed Issue Life Insurance is about?
The guaranteed issue life insurance is also known as guaranteed acceptance life insurance.
It offers life insurance to everyone without asking any medical condition-related questions.
However, it’s quite expensive compared to other life insurance policies. Also, you need to wait at least 2 years before you can start getting benefits for it.
Here are the key features of the Guaranteed issue life insurance policy:
Fixed Premium Process
You need to pay a fixed and same premium process throughout the policy. If you failed to do so, will lead to policy cancellation.
For example, if you have issued for $10000 policy then you need to pay around $600 premium for each period, failure to do will lead it policy cancellation.
Death Benefits
Guaranteed issue life insurance offers the same benefits to policyholder’s beneficiaries throughout their lifetime. It won’t decrease over time.
However, if you withdraw cash or take loans against it, then it’ll reduce the death benefits.
Beneficiary Period of Claim
After issuing your life insurance from the Guaranteed acceptance, there is a certain waiting period, at least 2 years before your policy beneficiary percentages start.
However, if the policyholder dies within this time due to accidental cause, the beneficiaries will get full coverage.
On the contrary, if the policyholder dies due to natural causes, then the beneficiaries get only the paid premium amount.
No Medical Certificate Required
Unlike other life insurance policies, the Guaranteed issue life insurance doesn’t require any medical certificate or conditions. You’ll able to apply for it no matter your health condition
Whole Life Insurance Policy
Guaranteed issue life insurance offers whole life insurance, which means the policy will last the bestiaries entire lifetime.
Who is Eligible for Guaranteed Issue Life Insurance?
Yes, it’s true that anyone can be a policyholder for guaranteed issue life insurance. However, not every age of people can be a policyholder for this life insurance.
You need to be at the age between 50 to 80 years old to be eligible for guaranteed issue life insurance.
The insurance cost depends on the policyholder’s age. Different ages of policyholders must a certain rate of amount for both men and women.
Here’s the average annual rate of policy cost for men and women:
50 years old men & women:
|
Policy Cost |
Average Rate (Men) |
Average Rate (Women) |
|
$10000 |
$592 |
$441 |
|
$15000 |
$866 |
$655 |
|
$25000 |
$1463 |
$1127 |
60 years old men & women:
|
Policy Cost |
Average Rate (Men) |
Average Rate (Women) |
|
$10000 |
$823 |
$632 |
|
$15000 |
$1228 |
$942 |
|
$25000 |
$2093 |
$1630 |
70 years old men & women:
|
Policy Cost |
Average Rate (Men) |
Average Rate (Women) |
|
$10000 |
$1302 |
$962 |
|
$15000 |
$1947 |
$1433 |
|
$25000 |
$3347 |
$2522 |
Guaranteed Death Benefits- How Does it Work?
As you should know, life insurance is after-death service. It provides liquidity to the policyholder’s beneficiaries.
Guaranteed issue life insurance Death Benefits are quite similar but there are some different factors included. Such as:
● Policyholders don’t start getting the from the paid premium before 2 years.
● Generally the beneficiaries would get 110% to 120% of the paid premium.
● If a policyholder dies of natural cause within that time the beneficiaries will the amount policyholder already paid as a premium.
● In case of accidental death of the policyholder within 2 years, then the beneficiaries would get the full payment.
● After two years of premium payment, the beneficiaries will get the full payment regardless of the cause of the policyholder’s death.
Is Guaranteed Issue Life Insurance Worth Getting?
After going through all our earlier discussions it’s natural to wonder whether the guaranteed issue of life insurance is worth it or not.
Any life-related decision-making should be determined by weighing all the factors including their pros and cons.
So, here are the pros and cons of Guaranteed issue life insurance:
Pros Of Guaranteed Issue Life Insurance:
● Guaranteed issues life insurance is exceptionally easy compared to other life insurance policies.
● You don’t need any medical report to apply for a policy in guaranteed life insurance.
● You can use the Death benefits for any purpose.
● The death benefits will get doubled if the policyholder dies due to a certain accident mentioned in the terms and policy of guaranteed issue life insurance.
● Based on the policy, your premiums could stop at a certain age, like 100, while your coverage remains intact.
Cons Of Guaranteed Issue Life Insurance:
● Guaranteed issue life insurance has certain age restrictions, unless you’re above 40 years of age you can’t apply for life insurance.
● You have to pay more than you’ll get as coverage amount.
● Beneficiaries won’t receive any coverage amount if the policyholder dies before 2 years due to natural cause.
If you have no remaining options left for life insurance appliances, then the Guaranteed issue life insurance is definitely worth it.
However, before you apply for this life insurance, make sure you weigh the pros and cons before making a decision.
Bottom Lines
Although Guaranteed life insurance has its limitations, however, this life insurance does provide support to those who have nowhere left to go.
Not all life insurance company accepts everyone to apply for life insurance, but Guaranteed issues life insurance does.
It’s one of the biggest features of this life insurance policy. So, all we’re trying to say is, Guaranteed life insurance is definitely life insurance, worth considering.
While this may not signify the company’s stability or reputation, it can be a tell-tale sign of the level of customer service. These companies also motivate their insurance advisors by implementing Bonus plans for executives as well as life insurance bonus plans for executives.