YOU ASK:

Where can I find guaranteed acceptance life insurance?

WE ANSWER:

Guaranteed acceptance life insurance is available in most states. It is offered for:

  • Those who are between 50 to 85
  • Those who may have health conditions and may be rejected for coverage
  • Those whose family health history poses a problem with the usual life insurance products
  • Those who pose high risk, such as those who have dangerous occupations or hobbies

This insurance is usually bought for the following reasons:

  • To help pay for end of life costs such as hospital bills and funeral expenses
  • To help pay for credit card balances and any outstanding loans
  • To add to existing life insurance coverage, as the person may be underinsured due to inflation

Guaranteed acceptance life insurance, as the name suggests, means that you will be accepted for coverage without having to go through a medical exam and without having to answer health questions. This kind of insurance will continue providing for coverage for as long as you pay for the premiums. And, most guaranteed acceptance life insurance maintain the premium rates all throughout the policy period, so you don't have to pay for increased rates in the future.

However, there are some disadvantages to getting a guaranteed acceptance life insurance:

  • Waiting Period. If the insured dies within that time, the beneficiaries will only get a specific percentage of the policy amount and not the entire death benefit. The amount that the beneficiaries will get is scaled according to the length the policy has been in existence. For instance, the beneficiaries will get 10% if the insured dies in the first year, 25% if the insured dies on the second year, and so on. This waiting period will help prevent those who have a terminal illness and have only a short time to live to buy as much insurance as he can.
  • Maximum benefit amount. The policy coverage is much lower than what one can get in another policy.
  • More expensive. The premiums for this kind of policy will be higher since it does not underwrite based on medical information. The insurance company only relies on information such as the gender and age of the person applying for insurance.
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