What is guaranteed life insurance?

What are the pros of guaranteed life insurance?

• Quick & easy to get: Since you don't have to answer any questions about your health or undergo a medical exam, you can get approved for and buy a guaranteed life insurance policy fast.
• Lifelong coverage: As long as you pay your premiums, your policy will last your entire life. (Keep in mind that the death benefit for these policies usually isn't available until two to three years after purchasing.)
• Cash value component: Like other kinds of permanent life insurance, guaranteed issue life insurance includes a cash value component that builds over time, which you can use as collateral for a life insurance loan.

What are the cons of guaranteed issue life insurance?

• Lower coverage amounts: Since guaranteed life insurance has lower eligibility requirements, insurers generally offer less coverage to applicants. If you're looking for a policy that can cover end-of-life expenses, but with higher coverage amounts, then final expense insurance may fit your needs.
• Graded death benefit: The death benefit of a guaranteed life policy usually includes a grading period, during which your policy won't pay out a total death benefit if you were to die. Instead, your beneficiaries may receive either a reduced death benefit or a refund of your premium dollars. This period typically lasts two to three years after you buy your policy, after which your beneficiaries can expect the full death benefit.
• Age requirements: Many insurers put an age limit on guaranteed issue life insurance policies, typically ranging from 50 to 80 years old.
• Higher premiums: Guaranteed issue life policies cost more than traditional life insurance since applicants usually have severe health conditions, which carries an increased risk for insurers.

Should I get a guaranteed issue life insurance policy?

If you have a serious health condition that makes it difficult to qualify for a traditional permanent life insurance policy, then you might consider guaranteed issue life insurance. Some of these conditions may include cancer, diabetes, and severe chronic obstructive pulmonary disease (COPD).