Whether you are purchasing a home or protecting your family’s finances in the case of your untimely death, you may be considering different life insurance options, including guaranteed acceptance term life insurance.
Health
If you pursue guaranteed acceptance life insurance, you will not be required to answer questions about your health, and you won’t have to have a medical exam before your insurance is granted. In addition, the insurance company does not have access to your medical records or prescription drug lists.
These types of policies are typically purchased by individuals with few other options because they have serious health issues, such as chronic or terminal illnesses with short life expectancies; live in nursing homes; or have had or need organ transplants.
Waiting Period
Guaranteed insurance policies have waiting periods, typically 2 years. If anything happens to you during the waiting period designated by the insurance company, your beneficiaries will not receive death benefits from the policy. However, your insurance premiums and interest, typically 10%, will be refunded to your dependents if you pass away during the waiting period.
Age Range
These types of policies have a specific age range (50-80 years of age). If you are within this age range, your policy is guaranteed and you have many policy and company options. However, if you fall outside this range, your policy and company options are significantly reduced.
Cost
Because these companies are insuring individuals without requiring health screening, their risk is higher. Therefore, the cost of these policies is typically 2-3 times higher than traditional life insurance.
Whole versus Term Life
Whole life policies cover individuals for the rest of their entire lives, while term life policies are only good for a specified period of time, typically 10, 20 or 30 years. When the term ends, so does your coverage. You can renew your policy after it expires, but your costs will typically increase.
If you have serious medical challenges, you may consider purchasing guaranteed life insurance.
