Know More About Guaranteed Issue Life Insurance

What is guaranteed Life Insurance?

Guaranteed Issue Life Insurance or Guaranteed Acceptance Life Insurance is a type of life insurance that does not require you to answer any health questions, undergo a medical exam, or allow an insurance company to review your medical records. Sometimes a guaranteed issue is also referred to as no questions life insurance.

These policies are typically sold with $5,000 – $25,000 of the death benefit, although more can be applied for. This becomes an extremely affordable way to make sure your loved ones are taken care of, and your last memory for them isn’t a final expense bill. You see we all leave final expenses

• Funeral cost
• Medical bills
• Other debts

With Guaranteed Issue Policies you can cover those final costs regardless of your health.

What’s the catch? Is guaranteed issue life insurance too good to be true?

Well, that would depend on the company you work with. Here’s what you need to understand. For coverages that do not ask any medical questions normally, there is a waiting period.

This waiting period (typically 2 years with most companies) states that if you were to pass away in the first 2 years of owning the policy your beneficiaries would only receive the amount you paid into the policy, not the full death benefit.

Why do insurance companies have a 2 year waiting period on guaranteed issue policies?

If you think from the insurance companies’ point of view, everyone could wait until they were on their death bed and then pay a small amount for their beneficiaries to relieve tens if not hundreds of thousands.

Because they can’t do this, they make a 2-year waiting period, where they pay a dollar for dollar what you put into the policy to your beneficiaries. That way they are left with something.

What does a guaranteed issue policy cost?

This will depend on your age and the coverage amount. One thing that is worth noting if you are in good health, you should apply for traditional life insurance as opposed to guaranteed issue life insurance, why? Simple it will cost you slightly less to get a life insurance policy that is medically underwritten.

The reason for that is the insurance company gets a better picture of who they are insuring, because of that it ends up being slightly cheaper.

What company is best when it comes to guaranteed issue life insurance?

That’s a tough question to answer, considering it will change over time. As of right now, CPP, Assumption life, and RBC all have great guaranteed issue policies.

However it always comes down to you, your health status, your age, and how much coverage you would need. It’s always best to work with a representative that can help shop the market and find you the best plan.

That’s why here at TIP Services we have non-commissioned staff standing by waiting to help answer your questions. If you would like help finding the best plan for you CLICK HERE to get a FREE quote.