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Guaranteed Issue Life Insurance

Posted on February 17, 2020 by Nestor Villamil

Helping the "uninsurable" secure coverage is challenging. Clients who've health issues or have already been denied coverage during the past still need life insurance coverage. One option is guaranteed issue life insurance coverage. Given the risky nature of coverage, few insurers offer it. However with just a little preparation and further effort, you will find the proper policy.

Life Insurance Medical Questions

High risk clients have to answer questions about their health background so you obtain the information you should find the appropriate coverage. Candidates for guaranteed life policies often:

  • Have permanent health problems
  • Need coverage to leave a legacy or even to give final expenses in order that themselves are left without debt.
  • Guaranteed Issue Life

    Guaranteed issue policies usually do not need a physical and preexisting medical ailments will not be one factor in the application form process. Often such applications require only general information, such as for example name, address, ID number, gender and beneficiary.

    The death benefit generally pays the beneficiary full face value if death occurs following the waiting period. Policies typically specify an interval of 1 to 3 years where time the policyholder will never be covered for the entire amount. If death occurs during this time period frame, the beneficiary may likely only get a return of most premiums paid with interest. However, if the insured includes a fatal accident, most companies can pay the beneficiary the entire amount.

    There are pros and cons that include guaranteed issue policies. Some advantages include:

  • No medical evaluations
  • A level death benefit that's guaranteed provided that premiums are paid
  • Premiums won't increase
  • The policy proceeds are often free from estate tax
  • Policies usually avoid probate in case a beneficiary is named
  • On another hand, you as well as your clients could have concerns concerning the following:

  • Guaranteed issue policies could be costly
  • Waiting periods could be lengthy - around 3 years
  • If your client is ready to provide some medical information, he/she might be able to buy a different kind of coverage that could be cheaper.
  • If the disadvantages outweigh advantages for a specific client, a straightforward issue policy is really a better choice. Such policies provide full face value beginning with the date of issue. These policies may work best for those people who are beneath the age 40, need full benefits immediately have already been without disease going back five to a decade, or have a illness.

    The "uninsurable" face many difficult planning decisions, but everyone needs the protection coverage that life insurance coverage offers. With guaranteed issue policies, approval that are easy steps away.