Guaranteed Issue Life Insurance

Helping the "uninsurable" secure coverage is challenging. Clients who have health problems or have been denied coverage in the past still need Life Insurance. One option is Guaranteed Issue Life Insurance. Given the high risk nature of coverage, few insurers offer it. However, with a little preparation and extra effort, you can find the right policy.

What is Guaranteed Issue Life Insurance?

The beneficiary receives the full death benefit of the policy only after a specified length of time from the issue date, usually two years. In case of accidental death, the beneficiary receives the face amount or double the face amount (depending on the policy provisions). In case of death other than by accidental means during the first two years from the date of issue, the premiums paid plus interest will be refunded. After two years, the face amount is paid, regardless of the cause of death.

Who Should Consider Guaranteed Issue Life Insurance?

This type of insurance is intended for persons who for medical reasons have difficulty obtaining insurance.

Candidates for Guaranteed Life policies often:

  • Have permanent health problems
  • Need coverage to leave a legacy or to provide for final expenses

Some advantages include:

  1. No medical evaluations
  2. A level death benefit that is guaranteed as long as premiums are paid
  3. Premiums will not increase
  4. The policy proceeds are usually free of estate tax
  5. Policies usually avoid probate if a beneficiary is named
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