If you need life insurance coverage, but can’t qualify due to the condition of your health – or you simply don’t want to submit to the battery of health-related questions and tests normally required with typical life insurance policies, you do have an option. It’s called guaranteed issue life insurance.
What is it, and why aren’t you required to qualify based on your health?
Table of Contents:
What Does Guaranteed Issue Life Insurance Mean?
Normally when you apply for a life insurance policy, you’ll be required to answer a long list of health-related questions, and even submit to a medical exam. If you’re in excellent, good, or even fair health, this will usually work well for you. But what if you aren’t?
There are millions of people with a variety of health conditions that will prevent them from getting conventional life insurance policies. That’s why guaranteed issue life insurance was invented.
Simply put, guaranteed issue life insurance is exactly what the name implies – it’s a policy issued without any underwriting.
On the surface, that’s a crazy idea, especially when you consider that the insurance industry is all about insuring against (or around) risk. But guaranteed issue life insurance isn’t typical life insurance, although it’s become very common.
Basically, you fill out a brief application, pay your premium, get your policy, and be on your way. That makes it a good choice for anyone with a serious health condition, or an abnormal fear of submitting to the health-related scrutiny that attends most insurance policies.
Pre-existing health conditions?
AIG Direct specializes in insuring people just like you. From high blood pressure to diabetes, AIG Direct has seen it all and since they have access to multiple companies, they can find you the absolute lowest rates! Click below to see if you qualify.
Quotes are quick, easy, and free!
How Does Guaranteed Issue Life Insurance Work?
Guaranteed issue life insurance is a whole life insurance policy. That means it’s permanent insurance, with a fixed death benefit and fixed premium. This is especially important for someone with a chronic health condition, whose needs may not be well served by a term policy with its certain expiration date, higher future premiums, even the possibility of nonrenewal.
It often goes by a variety of names, such as burial insurance, final expense insurance, or guaranteed acceptance life insurance. Whatever the given name, it’s all guaranteed issue life insurance.
Once again, when you apply for guaranteed issue life insurance policy, you’re not asked any health-related questions, and you won’t have to submit to a medical exam.
As a whole life insurance policy, it will accumulate cash value. That will add an investment component to the insurance coverage. The cash value will not only increase the ultimate death benefit, but you can also borrow against it for immediate needs.
If that all sounds too good to be true, it actually is. Guaranteed issue life insurance h