How Does Guaranteed Issue Life Insurance Work?

Dec 9, 2022 | Life Insurance | 0 comments

guaranteed issue life insurance

As of 2022, over 100 million adults in the United States have no life insurance to help their next of kin in the case the worst happens. Although, for some, it can be very hard to get this because of their circumstances. If you are one of these people, how can you have the assurance of receiving life insurance without the scrutiny they would otherwise receive?

This is where guaranteed issue life insurance comes in handy. By picking it up, you can get around many of the barriers that would otherwise appear in your struggles. So, read on for more information.

What is Guaranteed Life Insurance?

“Guaranteed” life insurance is a whole life insurance policy. This means it will remain for the insured individual’s entire life.

This is, of course, dependent on the payments for the policy continuing to the end of their life. Although, as other insurances might turn you down later, this is a weight off for many people.

The Insurer Cannot Turn You Down

Another unique thing about guaranteed life insurance is the fact the insurer guarantees they will give you a policy. Outside of fraud, there is generally no circumstance in which they will not accept your request.

No Medical Exam or Questionnaire

Of all the things that might be relevant, a guaranteed life insurance policy is often popular because there is no initial medical exam. People receive the policy regardless of the current state of their health, with no medical underwriting process. If they then die sooner because of existing issues, a death benefit is still paid out so long as they do not die within an initial window.

Usually a Higher Premium

One of the negatives of guaranteed life insurance policies is the fact the insurance premiums are a lot higher. This is because they must cover people who the company does not have information about. These people cannot guarantee any monetary safety for the insurance company.

To the insurance company, this makes a lot of sense. They do not want to put themselves in harm’s way, and the extra dollars give those assurances.

Scaling Benefits

When you take out a guaranteed premium, you should also understand that over time the benefits increase. For the first one or two years, you might not even receive anything in the case of death, but after this time, the premium starts to go up. If you die before then, you might still receive a refund, though.

This prevents critically ill patients from signing up at the last second. For those people, other options are available.

Get Guaranteed Issue Life Insurance

With this information, you now have a much better idea of what guaranteed issue life insurance is and what it can do for you. Still, you might have further questions that need a helping hand. This is where we can come in.

We can help you look at our guaranteed life insurance policies and work out if they are perfect for you. All you need to do is give us a call and we can get you started on the journey to a less stressful end of life for you or others. So, request a quote today and find out how we can help you.

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