Many carriers can deny you for a policy if you do not meet certain criteria. If you need guaranteed acceptance, then guaranteed issue whole life insurance may be right for you.
What is guaranteed issue whole life insurance?
Guaranteed issue whole life insurance is a type of no-exam life insurance that provides you with a small amount of insurance coverage without a medical exam or health questions, as long as you are within a certain age range.
You can purchase coverage between $5,000 and $25,000, receive immediate acceptance and enjoy a fast, simple underwriting process with this type of insurance.
The specific features and benefits you receive depend upon the specific policy you purchase. However, most whole life insurance policies include the following features:
Your monthly payments never increase.
Graded Death Benefit
For the first two years of your policy, your death benefit is a percentage of the premiums you have paid. If you die an accidental death within those two years, however, your loved ones receive the full death benefit.
As you pay your premiums over time, your policy builds cash value that you can withdraw or borrow against if needed.
Receive approval for your policy without a medical exam and without answering any health questions, as long as you fall within the policy’s age range (typically 45 or 50-80 years of age).
You may be able to receive some benefits during your lifetime under certain conditions (e.g. Chronic or terminal illness or a dementia diagnosis).
What are the downsides to guaranteed issue whole life insurance?
Before purchasing guaranteed issue whole life insurance, take these features into consideration:
Guaranteed issue whole life insurance coverage is usually capped at $25,000. If you need more coverage, you may want a different policy.
You can expect to pay higher premiums for this type of life insurance to compensate for the risk the carrier takes in covering you without a medical exam. However, the graded death benefit can help to mitigate premium costs in some policies.
If you are younger than 45 or older than 80, you may need to pursue other life insurance options.
Why consider guaranteed issue whole life insurance?
Guaranteed issue whole life insurance is an appealing option for many people who desire coverage that does not require a medical exam or who suffer from pre-existing conditions that prevent them from qualifying for other types of life insurance.