Have you ever heard of Guaranteed Issue Life Insurance? Well, if you’re reading this article, then you probably have. And you’re looking to find more information.
Guaranteed issue life insurance doesn’t require you to answer health questions, or undergo a medical exam. You can also deny the insurance company access to your medical records and your prescription records.
Most of the time, this type of life insurance is referred to as “no questions life insurance” or “no questions final expense insurance.” If all of this sounds too good to be true, then it probably is. Because there’s a catch.
Waiting Period
With this type of life insurance policy, there is always a waiting period. This means that if you, or the policy owner, die during the waiting period, then the beneficiaries will not receive the policy’s death benefit.
Usually, the waiting period is between two to three years. However, the money that you pay the insurance company will not disappear, nor will it go to waste.
Should you die during the waiting period, then the insurance company is required to repay your beneficiaries all the insurance premiums you paid, plus interest. The interest rates are usually at 10%.
This means that your beneficiaries will still get something, if you die during the waiting period. But it will be less than your expected death benefit.
Who Should Get Guaranteed Life Insurance
Guaranteed issue life insurance is beneficial for those who are suffering from an illness and would not be able to get any other form of life insurance policy. The cash death benefit is around $2,000 to $25,000 depending on the monthly premium, and the insurance company.
There is also an age range to qualify for this type of insurance. Usually, it is around 50 to 80 years old. Some insurance companies offer the same policy outside of this age range, so be sure to ask.
It is a beneficial and valuable asset for those who can’t get any other type of insurance. Keep in mind that the options and conditions for guaranteed life insurance policies are the same. So if you’re shopping around for one, do your research and find the one that best fits your needs.
