What You Need to Know About Guaranteed Issue Life Insurance
Life insurance has many benefits that most people may want to take advantage of. For example, life insurance benefits may be used to pay off a mortgage, credit card debt, medical expenses and supplement lost wages from the deceased.
However, before new coverage from a life insurance policy may go into effect, the applicant may need to pass a physical exam or underwriting. Many who have an existing health condition may not qualify for the coverage they need. However, the unfortunate reality is that these individuals who do not qualify for coverage may be the ones who have a stronger need for it.
Coverage Without a Medical Exam
Some who have already been denied coverage may feel frustrated and stressed out, but there may be hope available through a guaranteed issue policy. Unlike other types of life insurance, a guaranteed issue life insurance policy is one that does not have a medical exam requirement. In fact, most of these insurance plans also do not require the applicant to fill out a lengthy medical or health history questionnaire. Because of this, many who have an underlying or pre-existing medical condition may qualify for coverage.
The Benefits of Guaranteed Life Coverage
The most obvious benefit associated with guaranteed life insurance plans is that many who do not qualify for other types of life insurance coverage may be able to obtain the coverage they need.
However, there are also other reasons why some people may not qualify for other types of life insurance plans. This may include their age or participating in dangerous hobbies or work activities. With a guaranteed issue life insurance plan, these individuals may be able to obtain the life coverage they need.
In addition, some may feel overwhelmed by the process of completing a medical exam and answering dozens or more questions about their health history, and a guaranteed policy may be ideal for them as well. Some may have a fear of needles or doctors in general, and avoiding a physical exam may be highly preferred.
When Applying for Guaranteed Life Coverage
When you apply for other types of life insurance, you may be asked numerous medical questions that will help an underwriter to determine your risk and estimate your longevity.
When you apply for Guaranteed Issue Life Insurance, you may be asked a few questions, but there are no medical or health-related questions asked with this type of coverage. This makes the qualification process easier, and it can also save you time and hassle when applying for coverage.
What You Need to Know About Guaranteed Life Coverage
While the main difference between guaranteed coverage and other types of life insurance relate to the absence of a medical exam and greater leniency with regards to health status and pre-existing conditions, there are other differences. For example, because guaranteed insurance does not have a medical exam requirement and related underwriting, these policies will generally have a higher premium than other options. In addition, the amount of coverage that you could purchase may be limited. Commonly, the coverage available may range from $10,000 to $25,000.
In addition, many insurance companies will have a graded benefits clause in these policies. The graded benefits period may commonly last for approximately 24 months, and this means that if you pass away during the first 24 months of the policy, your beneficiaries may only receive the premium that has been paid in plus 10% interest. This is true unless the death is accidental, in which case 100% of the coverage amount is available on the first day.
What This Means for You
With the increased premium associated with a guaranteed life policy as well as the various other limitations and requirements, many people will find that it is more advantageous to purchase a medically-underwritten policy if possible. Some may even find that it is best to first apply for a medically-underwritten policy even if they believe that they may not qualify. Some may be surprised to learn that they will qualify for the coverage.
If you are denied coverage on a medically-underwritten policy, you can always then apply for guaranteed coverage. In addition, keep in mind that insurance companies have different requirements and guidelines. While one insurance company may deny you coverage with a medically-underwritten policy, another one may not. Therefore, it is a good idea to apply for coverage through several different companies before considering a guaranteed insurance policy.
When You Are Ready to Explore Your Options
If you are thinking about purchasing a new life insurance policy, you may be wondering what steps you need to take to obtain the coverage you need.
You may not want to subject yourself to the time and effort of enduring multiple medical exams if this is not necessary or beneficial. A smart idea is to be candid with different insurance agents about your health status. Many are well-aware of the different underlying medical conditions that their underwriters are comfortable with as well as those underlying medical conditions that may yield an automatic decline.
Some issues may arise in the medical exam that may also result in a denial, but if you discuss an underlying health condition with the insurance agent up-front, you may be able to avoid having an exam unnecessarily. Exploring the options and being honest about your health status up-front may be truly beneficial to you.
The decision to purchase life insurance is an important one to make, but this is only the first step in the process of obtaining the coverage you need. Please complete our online form to begin the quote process, and a licensed agent will contact you to help determine your eligibility and provide quotes from several companies. You can get your questions answered and learn more about your likelihood for getting approved for a medically-underwritten life insurance policy.
You can take the first step today by requesting a quote on our online form. We look forward to helping you! 1-888-773-1181