What Is a guaranteed issue life insurance?
Guaranteed Issue Life Insurance is a subtype of whole life insurance policy which is usually acquired by elderly people between the ages of 50 to 80 or by those who remain ineligible for other insurances due to terminal illness or any different critical medical situation. The guaranteed life insurance has no such requirement of the medical exam or medical history. Therefore, it is considered the last resort insurance policy. Thus, the acceptance of the application is always guaranteed to make it the most accessible type of insurance to purchase.The guaranteed life insurance offers low coverage amounts ranging from $10,000 to $25,000. The provided amount is low for the price paid, which makes guaranteed issue life insurance an expensive policy. The death benefits are usually used to cover the deceased’s final expenses such as funeral ritual costs, medical bills, or repaying debts. It can also be left as a legacy for children or grandchildren.
Guaranteed issue whole life insurance policy
Guaranteed issue whole life insurance policy quotes
Unlike a lot of life insurance policies, there are no medical questions asked when buying a guaranteed issue insurance policy, and you don’t need to take a medical exam.
How does guaranteed issue life insurance work?
Guaranteed issue life insurance has a different working that makes it stand out uniquely from other insurance policies. There is no medical exam and health-related questionnaire required, the application process is relatively more effortless, and acceptance is always guaranteed. The rates are decided according to age and the gender of the person. The policy remains active throughout life as long as the premiums are paid.
The policy offers graded death benefits, which means that there is a waiting period of one or two years during which if the person dies, there is no death benefit provided to the beneficiaries. However, the premiums are repaid to the beneficiaries with an interest rate of 10 to 30% depending on the company’s policy. For accidental death, the policy pays for full coverage amount even if bought recently.
Alternatives to Guaranteed Life Insurance
Guaranteed Issue Life Insurance is beneficial for people who can not qualify for other traditional insurances. However, with low coverage amount and waiting period, the policy does not remain the ideal policy to choose. There are alternative policy options available such as Permanent Life insurance or Term Life Insurance that can provide a better coverage amount.
Permanent or Whole life insurance is an alternative policy option to acquire a handsome coverage amount with either full or accelerated underwriting. The full underwriting requires the medical examination or the health-related questions, whereas, for accelerated underwriting, there is no medical exam needed but just an in detailed medical history interview. Likewise, a Term Life Insurance policy provides a good coverage amount but for a specific period. The applicants are required to give medical examinations or answers to health-related questions. Term Life Insurance can be converted into permanent life insurance as per the requirements of the applicant.
Guaranteed issue life insurance $100k
Guaranteed Issue Life insurance usually has a low coverage amount, but many insurance companies offer the coverage amount of up to $100K. This can be acquired by answering their simple health-related questionnaire honestly. The premium rate will vary as per the gender, age, and health condition of the insurer.
Guaranteed issue life insurance without the waiting period:
The guaranteed issue life insurance comes with a waiting period of usually one or two years. There is no such guaranteed issue life insurance that has no waiting period.
Guaranteed issue life insurance companies
AIG provides guaranteed issue life insurance to individuals in the age bracket of 50 to 85. The coverage amount is often $5,000 to $25,000. With an easy application process, AIG guarantees the acceptance of the application.
AAA provides guaranteed issue life insurance to individuals in the age bracket of 45 to 85 with the coverage amount of usually $25,000. The upper age limit is 100, after which no further premiums are due.
Americo provides guaranteed issue life policies to individuals in the age bracket of 50 to 70 with a coverage amount of $2,000 to $10,000. The application process is easy in which the policy is issued within minutes. With no health questions, the policy lasts for a lifetime.
Met Life insurance company provides guaranteed issue life insurance to the individuals in the age bracket of 45 to 75 with no medical exam. The coverage amount is usually up to the range of $2,500 to $50,000. With no hike in the premium rate throughout the term, Met Life ensures that the policy remains intact as long as the premiums are paid.
March, Mutual of Omaha
Mutual of Omaha
Mutual of Omaha provides guaranteed whole life insurance to individuals of age bracket between 45 to 85 with a coverage amount of up to $25,000. The policy is obtained quickly with no medical exam.