A guaranteed issue life insurance is offered without any medical exam, regardless of the age and health condition of the applicant. Here is some information about this type of life insurance policy.
Qualifying for a life insurance is often associated with various eligibility criteria like age and health conditions. Most of the life insurance policies are associated with medical examination and questionnaire regarding the health status of the applicant. While some people do not have enough time to undergo such procedures, some others may simply detest such cumbersome physical exams. They may search for a life insurance with no physical exam. There is a third category which consists of those, who have tried all the available options, but failed to qualify for life insurance due to some serious medical problems. If you belong to any of these categories, then you may opt for a guaranteed issue life insurance.
Salient Features
As the name rightly suggests, it is a life insurance scheme that is said to be guaranteed for everyone, despite their health condition or illnesses. In other words, no applicant is disqualified on the grounds of health problems or old age. These schemes are aimed at those, who fail to qualify for standard life insurance policies due to a serious health conditions or old age. As per this scheme, there is no mandatory requirement of physical exam and you don’t have to fill in the lengthy questionnaire regarding your health conditions. However, there are some terms and conditions that may be disadvantageous for the policy holder. So it is very much necessary for you to understand the terms and conditions, before buying such policies.
These life insurance policies are often promoted as ideal schemes for elderly and those with serious illnesses. Even though the features of these policies may slightly vary from one company to other, the basic ones remain the same.
- As far as the eligibility criteria for a guaranteed issue life insurance is concerned, the age limit set by most companies is 45 to 85. However, applications from people above the age of 75 are usually not considered by some insurance companies.
- The main feature of this life insurance policy is absence of medical examination or health questions. When compared to other life insurance policies with no physical exam, this scheme may not even require you to answer any health questions. As acceptance is guaranteed in this insurance policy, it covers almost all serious illnesses, ranging from cancer to HIV/AIDS.
- Apart from the above mentioned features, there are some others that may not be advantageous for the policy holder. Most of these guaranteed issue insurance policies have graded benefits for the first two or three years. This means, if the policy holder dies within the specific time period (2 or 3 years), then the beneficiaries will get only a portion of the death benefits.
- It has been observed that most of these schemes have a two-year time period and only after this period, full death benefits will be paid. One exemption for this condition is death caused by accident.
- Apart from that, most of these policies have a limited death benefit amount. However, guaranteed issue life insurance policies are found to be very much in demand, as they cover burial expenses, debts left in the estate, and medical bills.
- Another feature that is not so favorable for the policy holder is the hefty premium. However, being a whole life insurance policy, there will be no change in premium amounts and the death benefit.
In short, this type of policy is ideal for those who could not qualify for other standard life insurance policies. You may apply online for guaranteed issue life insurance quotes. If you want to enroll for this scheme, please ensure that you understand the terms and conditions beforehand.
Disclaimer: The information provided in this article is solely for educating the reader. It is not intended to be a substitute for the advice of a professional.
