Guaranteed Life Insurance

Guaranteed life insurance offers a viable solution for those unable to qualify for traditional coverage, providing essential financial protection for final expenses. Acceptance is virtually assured within eligible ages, typically between 45 and 85, depending on state regulations. Although premiums are higher and benefits limited in the first two years, this option remains vital for individuals facing medical underwriting challenges.

What Is Guaranteed Issue Life Insurance?

Also known as guaranteed acceptance life insurance, this policy type does not involve a medical exam or health questions. As long as you meet age and state criteria, acceptance is guaranteed. The policy features stable premiums, modest cash value, and face amounts typically ranging from $2,000 to $25,000. Note that a two-year period applies for non-accidental death benefits.

How Guaranteed Issue Life Insurance Works

This insurance operates similarly to traditional policies but includes restrictions like lower coverage caps and a graded two-year period for non-accidental deaths. Full coverage for accidental death begins immediately.

When to Buy Guaranteed Issue Insurance

Ideal for older adults unable to qualify for other life insurance options, these policies are available to those within specific age bands (45-85, state variations apply). Consider this option if other insurance avenues are unavailable due to health concerns.

Coverage Caps

Coverage caps for guaranteed life insurance are significantly lower than traditional policies, typically ranging from $2,000 to $25,000. Some providers may offer higher amounts, but these are less common.

Prepare to Pay Higher Rates

Due to the absence of medical underwriting, premiums are higher. For example, a 60-year-old woman may pay around $45 monthly for $10,000 coverage, while a 70-year-old man might pay up to $95 monthly. Premiums remain level for life and vary by amount and provider.

Graded Death Benefits

Policies typically include a two-year graded period for non-accidental deaths, during which benefits are limited. Accidental deaths are covered immediately. If death from non-accidental causes occurs during this period, premiums are often refunded.

Build Cash Value

Guaranteed issue policies accumulate cash value over time as premiums are paid. This value can be accessed through loans or withdrawals, potentially impacting the death benefit and incurring taxes.

Is Guaranteed Issue Life Insurance Right for You?

Consider guaranteed issue life insurance when other policies are inaccessible due to health issues. If a terminal illness or recent medical procedure precludes standard coverage, this policy provides essential financial protection despite higher premiums and benefit limitations.

Alternatives like simplified-issue final expense or accidental death insurance may be suitable for those outside typical age bands or with specific needs. Explore options to best fit your circumstances.

How To Get Guaranteed Life Insurance

Purchasing a guaranteed life insurance policy involves a straightforward application process without medical exams. Coverage is generally available online or over the phone for eligible applicants, ensuring rapid issuance.

Notable providers include:

• Corebridge Financial (formerly AIG): Offers coverage up to $25,000 for ages 50-80.
• Fidelity: Provides permanent coverage up to $25,000 for ages 50-85.
• Mutual of Omaha: Accepts applicants from 45-85, with benefits ranging from $2,000 to $25,000.
• Gerber Life: Offers policies for ages 50-80 with coverage up to $25,000.
• AAA: Supplies coverage for ages 45-85, with benefits capped at $25,000.
• Colonial Penn: Offers flexible coverage units for ages 50-85.
• Americo: Provides benefits from $2,000 to $30,000, with a graded death benefit period.
• Columbian Financial: Offers final expense coverage for ages 45-80, capped at $25,000.

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