With Guaranteed Issue Life Insurance, it's easier than ever to get protection you can count on regardless of your health. Even if you have diabetes or your a long term diabetic on insulin you can purchase life insurance.
There are NO Medical Exams, and depending on the company, very few medical questions to answer.
If you have been refused life insurance or cannot find coverage due to medical history, hazardous employment or a dangerous hobby, you should consider guaranteed issue life insurance. Often referred to as burial or final expense policies, simplified issue and guaranteed issue life insurance policies can pay your final expenses.
Rates are typically guaranteed to never go up for as long as you are insured and your premiums are paid when due. These plans are typically whole-life policies, so they build guaranteed cash values within the plans. However, some companies offer term insurance as guaranteed issue, primarily with group plans.
With this type of policy you don't have to spend your precious time worrying about how to pre-pay your final expenses. Thus you can spend more time enjoying life with the people you know and love. A guaranteed issue life insurance policy can give you peace of mind while protecting your loved ones from the burden of outstanding debts you may leave behind.
Often marketed to seniors or the elderly, guaranteed issue individual life insurance plans can insure most anyone, with no medical examination. Many companies also offer simplified or final expense life insurance, where the insured must answer medical history questions, but are not required an examination.
Because guaranteed issue life insurance policies do not rely on medical information to set premiums, the costs can be higher. Insurance companies offer lower rates to customers who can prove they are in good health through a medical exam. Because there is no medical exam or underwriting, insurance companies have no information other than the applicant's age and gender on which to base the premiums.
Guaranteed issue life insurance policies are typically designed to provide for only funeral or final expenses, so most companies are only willing to offer a policy with a face amount of more than $15,000 to $20,000.
The biggest differences between Guaranteed Issue and Final Expense policies are medical questions when you apply and the graded benefit period.
With Final Expense policies, simple health related questions qualify or disqualify you from coverage as there is simple underwriting.
Guaranteed Issue plans typically have a 2-3 year waiting period, or graded benefit. In other words, the full death benefit amount of the policy will be paid to the beneficiary after a specified period of time from the issue date of the policy.
Graded benefit periods prevent fraud and from having people apply while on their deathbeds. If death occurs prior to the end of that period of time the beneficiary receives a return of paid premiums plus interest. Once that period of time has passed, the full death benefit amount is paid to the beneficiary upon the death of the insured. Final Expense plans typically have first or next day coverage.
At Legacy Insurance Agency we represent the some of the nation's leading carriers of guaranteed issue life insurance or similar plans. Depending on your resident state, death benefits of $5,000 to $50,000 may be available.
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