If the thought of a medical exam for getting life insurance scares you or makes you anxious, then don’t worry; there are many people out there just like you. This is where guaranteed life insurance comes in. It does not matter if you give a medical exam or develop a terminal illness; you will get guaranteed policy approval.
And another additional advantage is you can also get guaranteed acceptance life insurance no waiting period now. With the funeral costs on a steady rise and touching almost $10,000 as of 2019, guaranteed final expense policies can be a good help for you and your family after your passing.
Here is everything you should know about getting a guaranteed acceptance life insurance policy.
Guaranteed Acceptance Life Insurance – What Does It Mean?
A guaranteed acceptance life insurance policy, which is also called a guaranteed life insurance policy, usually comes with a graded death benefit. It does not need any medical underwriting or a health questionnaire for delivering a particular sum of money to the beneficiaries.
According to insurance experts like “Gary P. Cubeta” from “Insurance for final expenses”, it is classified under final expense life insurance. It is whole or permanent life insurance, and its primary goal is to confer the funds for the end-of-life expenses, such as funeral costs and such.
Sometimes there will be a waiting period of a maximum of two to three years. During this time, the policyholder should pay the premiums on the insurance policy before the full death benefit can be paid.
But there are also a few guaranteed acceptance life insurance with no waiting period, where you will be covered on day one as such. But it is also sometimes possible that you have to wait for two years and pay the monthly payments for that time before the full death benefit gets paid up.
To put it in simple words, with guaranteed acceptance of life insurance policies, you can have complete confidence that your application will hundred percent be approved.
How Does It Work?
Usually, when you plan and apply for an insurance policy, there will be many variables and unknowns. One of the main reasons for this is that you will not be sure if the insurer will approve your application.
But when it comes to guaranteed acceptance of life insurance policies, you can have complete confidence that the application will get approval. Just like the name implies, the providers or insurers of this type of insurance policy will accept anyone who applies as long as they fulfil basic age and state of residence requirements.
Irrespective of the financial situation you are in or health issues you have, you can get guaranteed acceptance life insurance policies easily with no waiting period.
What Is Graded Death Benefit?
Many insurers use the graded death benefit to reduce the risk when they issue the guaranteed life insurance policy. But remember that every insurance company does not use this system.
When an insurer uses graded death benefit, it alters the way in which the company pays the death benefit to the beneficiary. In case a natural death occurs in the first two or three years of a policy, the insurance company will pay around 110- 120 percent of premiums paid. Once the waiting period ends, they will pay the full face amount of the policy.
Instead, if it is an accidental death, at the time of the waiting period, or any time later, the insurer or the company will pay up the policy’s full face amount.
Advantages Of Guaranteed Acceptance Life Insurance
One of the main benefits of a guaranteed insurance policy is, you will get your coverage no matter your financial or health situation. You will also not undergo any medical exam or be in a situation to answer any medical questions.
No Medical Exam
When you are applying traditional policies, you will be asked to undergo medical exams and answer medical questions related to your health. But like discussed earlier, with guaranteed life insurance, you will not be put through either.
Value For Money
Compared to other policies, guaranteed life insurance can be a little expensive. This is because the insurer is taking a risk by issuing you the policy without understanding your health condition. But it is a good value for money compared to other policies.
Who Is It For?
Good candidates are those people who have severe medical conditions like cancer. This is because, for people with such serious medical conditions, it can be difficult to qualify for other policies. But that does not stop you with just the one option of guaranteed acceptance life insurance policy.
Guaranteed life insurance policies have many advantages, and it appeals to a specific market. People, who have certain health conditions, should work with life insurance companies and agents who will help find the right policy. Look for the right company and check for all the options before you get into a policy.