Guaranteed issue life insurance is beneficial for those who cannot obtain traditional coverage, however there are limitations
Wheeling, IL (Vocus) June 21, 2010
AccuQuote, a leader in providing term life insurance quotes to people across the United States, explains guaranteed issue life insurance for consumers who may not qualify for traditional life insurance coverage.
Many health conditions prevent consumers from qualifying for fully underwritten, traditional life insurance coverage. However, there are alternative options for these people. Guaranteed issue life insurance is a type of life insurance plan that requires no medical exam. Most people, within a certain age bracket, who apply for this type of coverage can become insured. Guaranteed issue plans make it possible to insure people who would otherwise be considered ‘uninsurable’ by most carriers, according to industry standards.
“Guaranteed issue life insurance is beneficial for those who cannot obtain traditional coverage, however there are limitations,” says Byron Udell, founder and CEO of AccuQuote. “For example, most of these policies have small face values, usually less than $25,000, at a much higher cost. The reason is because these policies are usually designed to cover final expenses, and that’s it.”
Since there is no medical exam or underwriting for guaranteed issue life insurance policies, carriers have no information other than the applicant's age and gender on which to base the premiums. The high premiums, combined with a low face amount for the death benefit, make guaranteed issue life insurance a less desirable option for relatively healthy individuals. For some of these policies, you could end up paying more in premiums than your beneficiaries will receive upon your death.
“Almost anyone can qualify, even if they have fairly serious medical issues. So although there are limitations to this type of life insurance, it’s certainly better to be able to obtain some type of coverage than nothing at all,” says Udell. “But remember, if you’re young and relatively healthy, traditional plans offer a higher face amount, at a much lower cost per thousand and represent much better values.”
For more information on guaranteed issue life insurance or traditional coverage, contact a licensed life insurance agent at a multi-carrier life insurance quoting and brokerage firm, like AccuQuote.
AccuQuote helps consumers find the best values in term life insurance by combining instant online life insurance quotes with the personal service of unbiased life insurance professionals that can help answer questions, identify important issues, and make meaningful recommendations. The company offers consumers an extensive selection of life insurance options, including term life, whole life, and universal life, as well as selected annuities. The website has many handy insurance tools, including a life insurance needs calculator to help you figure out how much to buy, a glossary that explains industry terminology, a collection of articles that cover the basics about life insurance and a blog which answers many questions about life insurance. For additional information or to get quotes for cheap term life insurance, please call 1-888-314-4455.