Guaranteed Issue Life Insurance: Is it right for you?When you cannot qualify for life insurance due to health issues, this policy may be an option for you. Learn about the pros and cons of this type of coverage.

Guaranteed Issue Life Insurance: Is it right for you? When you cannot qualify for life insurance due to health issues, a Guaranteed issue life insurance policy may be an option for you. Learn about the pros and cons of this type of coverage.

Guaranteed issue life insurance coverage is exactly what it says it is- “guaranteed issue.” This means you cannot be denied for this coverage if you meet the basic qualifying criteria. This is a permanent life insurance policy, which typically runs to the age of 100. The coverage is meant for people who cannot qualify for traditional life insurance policies, usually because of a health condition that would cause underwriting to decline a policy.

When you apply for a standard life insurance policy you answer medical questions on the application and an examination is also ordered. The exam company will meet with you and take a blood and urine sample, and depending on your age and the amount of the policy, a resting EKG may also be required. If there are medical conditions that appear through the exam findings or your medical records, you may be turned down for coverage. This may leave you unsure of available options.

A Guaranteed issue life insurance policy does not require your medical history or a medical exam. Your coverage is “guaranteed” to be approved based on the amount you apply for.

We know the pros of this type of policy: no medical exam, guaranteed coverage until age 100, but what are the cons?

These policies typically costs much more than a policy with traditional underwriting. They are meant as a last alternative for someone who wants the protection of life insurance, but who  cannot qualify for coverage elsewhere.

Guaranteed issue life insurance policies typically have a 2-year waiting period for a benefit payout, which means that if you die before the 2-year wait, no benefits are paid. If you live beyond 2 years, the full death benefit is paid to your beneficiary.

Also, you will not be able to get a large death benefit with this type of policy. The death benefit maximum is around 50,000 (depending on the carrier).

This coverage may still be a great option for you if you meet the requirements outlined in this article. A great benefit is to be able to have life insurance, even with a serious medical condition, so you can have peace of mind that your last minute expenses will be taken care of at the time of your passing. For more information about this type of coverage, you can contact us today.