Understanding Life Insurance: Guaranteed Issue
Guaranteed Issue Life Insurance is a very unique coverage when compared to other life insurance coverages. When applying the insurer will not ask any questions regarding health. All they need to know is the age of the insured. This is why it is referred to as a no exam life insurance policy.
Before this sets people running to get this coverage, it is important to understand some specifics regarding this insurance. While this may sound great you need to be aware that there are some draw backs. As always, you’ll get the services you pay for and this is no exception.
Premiums will be much more expensive for this sort of policy. While the benefits may not be as lucrative, most guaranteed issue life insurance policies are between $5,000 and $50,000. However, that is not a reason to take medical tests. The best part of the policy is that you don’t have to take any tests like you do with other companies that may have turned you down for coverage.
If you’re wondering whether or not this insurance is for you, if no other insurance companies are willing to take you and you are turned down for a policy, then yes, this is the right coverage for you and your specific needs.
Of course, signing up for one of these does not preclude you from finding better coverage elsewhere somewhere down the road. In fact, this gives you the opportunity to do more research and find a great policy without a lapse in coverage. Premiums for life insurance are typically worked up by an actuary. If you’re refused, you can still find a great policy for life insurance should you require it.
Is a Guaranteed Issue Policy Better than a Standard Policy?
A guaranteed life insurance policy isn’t necessarily greater than a regular life insurance policy. However, if there aren’t other options then you should probably go for this one. You can still continue looking but this will help to cover the gap in coverage between policies. You may find a great deal in time but you’ll still be covered while you search.
When all is said and done, and you need life insurance, ensure that you request several quotes for guaranteed life insurance policies form a variety of companies in order to ensure that you’re getting the very best possible deal available for your specific needs and requirements.