Guaranteed Issue Whole Life Insurance
Guaranteed Issue Whole Life Insurance

Guaranteed Issue Whole Life Insurance is a type of life insurance that does not ask you to – answer any health questions, undergo any medical exam, or let an insurance company review your medical records. You may also hear it referred to as “no questions asked life insurance” or “no questions asked final expense insurance”.

Generally, Guaranteed Issue Whole Life Insurance is reserved for people with physical conditions that make it difficult for them to obtain other life insurance.

Also referred to as Guaranteed Acceptance Life Insurance, the term “Guaranteed Issue” is used to describe permanent life insurance policies.

If you pay your premiums on time, your coverage will last for your whole lifetime. In the event that you have health problems or are older, Guaranteed Issue Whole Life Insurance can provide a guaranteed way for your family to pay funeral costs, medical bills, and other expenses after your death.

Guaranteed issues can be beneficial for individuals who fear leaving medical bills and other expenses left behind. Although coverage amounts are lower and premiums are higher than other types of insurance, Guaranteed Issue Whole Life Insurance offers no-questions-asked coverage that can be a financial lifeline for your family. 

KEY OUTCOMES 

  1. The Guaranteed Issue Whole Life Insurance policy is a small whole life insurance policy without health requirements.
  2. The beneficiary will receive a cash death benefit up to $5,000 to $40,000 after the insured dies.
  3. During the first two or three years of the policy’s validity, Guaranteed Issue Whole Life Insurance pays 100% of the benefit if caused by an accident, or the policy’s premiums are returned with interest if by natural causes. After 2 years, 100% of the benefit is paid no matter the cause of death.
  4. People with serious health conditions who cannot be approved for traditional life insurance are offered guaranteed issue policies.
  5. Guaranteed Issue Whole Life Insurance can be obtained without medical questions or without undergoing a medical exam.
  6. For those who don’t qualify for other types of life insurance because of their health, Guaranteed Issue Whole Life Insurance can be an ideal coverage option.

How does Guaranteed Issue Whole Life Insurance Work? 

When you apply for Guaranteed Issue Whole Life Insurance, applicants will be asked some basic questions by the insurer to determine their eligibility for the policy and determine their rates. 

Since there’s no medical exam or health questions, or a review of your medical records, a guaranteed issue policy typically can’t be denied unless you’re below or above an age requirement.

Additionally, you will choose the amount of coverage you want when you buy your policy. This death benefit is a “graded benefit”, which means it won’t begin to be paid until after the grading period for your policy. In case of your death, your insurance company will refund your premiums with interest to your family during the graded period.

The full payout amount will be available to your beneficiaries after the graded period, whether they are your spouse, children, or others you designate.

As the name implies, these policies are called guaranteed issues because the insurance companies guarantee that they will issue you a policy as long as you meet the age requirements when applying. In other words, they guarantee that they will accept you as a Policy Holder. In general, you must be between 40 and 80 years old to qualify for a guaranteed issue policy. If you are outside of this age range, you can still get a policy, but you will have fewer options.

Because these age requirements and no medical underwriting (health questions) apply to this age group, guaranteed issue insurance is marketed to them; however, many people in this age category, even those with health issues, have other options than Guaranteed Issue Whole Life Insurance. This type of insurance is best for those who have no other options due to health concerns, or who cannot afford other options due to health conditions.

What conditions will disqualify you from health insurance? Not as many as you may think.

  • There is no cure for your terminal illness and you have less than one year to live.
  • Your organs or tissues have been transplanted or you need them.
  • You are undergoing dialysis.
  • Cancer has spread to your body (and it isn’t a basal cell or squamous cell).
  • HIV or AIDS has infected you.
  • Due to a chronic illness or disease, you are in a wheelchair.
  • You have Alzheimer’s disease or dementia.
  • You are in a nursing home or hospice.

We know that it’s common for seniors to suffer from several health ailments or diseases and sometimes can be quite severe. You might have noticed if you look around at the senior citizens in your local community that they’re not all the same. Some can be really frail while others are still really independent and remain healthy despite their age.

Fortunately, insurance companies that focus on this target market will provide different options not just for people who need short-term care, but also for those who need longer-term care and are closer to needing end-of-life care nursing options. Also, remember that insurance providers won’t cover costs until you pay for these plans upfront, so make sure you assess your needs before taking out any coverage!

Does Guaranteed Issue Whole Life Insurance require a Medical Examination?

Does Guaranteed Issue Whole Life Insurance require a medical examination?
Does Guaranteed Issue Whole Life Insurance require a medical examination?

The majority of types of life insurance require a medical exam. Medical exams allow the insurance company to determine whether you are eligible for certain types of insurance and how much it will cost you.

This is where Guaranteed Issue Whole Life Insurance stands out. Since it’s designed for older people with potential health concerns, you can’t be turned down based on your medical history. You can bypass having to fill out a medical questionnaire or provide medical documentation of your current physical and mental states because these types of plans are intended specifically for those 40 years and older. There’s also no waiting period where you’ll have to wait before the benefits will take effect which means as soon as you receive your policy you’re covered! In addition to age limits, you may need to qualify for a guaranteed issue plan based on your insurance company’s requirements.

With guaranteed issue policies, insurance companies don’t consider your health condition when issuing you a Guaranteed Issue Whole Life Insurance. Compared to other types of insurance, the cost for comparable coverage amounts is higher, and the maximum coverage amount is generally around $40,000. Depending on how old you are, with Aqua Coast Financials’ Guaranteed Issue Whole Life Insurance plans, you can buy up to $40,000 coverage if you’re between the ages of 40-85+ years old.

Even though the coverage amounts are smaller than traditional term and permanent policies, families can use that money to help pay funeral costs, nursing home bills, and so forth. Guaranteed Issue Whole Life Insurance is an ideal choice for people who cannot qualify for a large policy but also who want to leave behind money for their loved ones.

How can you use the Guaranteed Issue Whole Life Insurance benefit?

Guaranteed Issue

The life insurance offered by a guaranteed issue addresses specific issues for a particular group of people. You may also hear it referred to as Guaranteed Acceptance Life Insurance.

Guaranteed Issue Whole Life Insurance has the advantage of never being rejected. It’s also incredibly convenient compared to other types: You only have to fill out a simple application without being asked any medical questions.

A Guaranteed Issue Whole Life Insurance policy pays for your funeral and burial costs, taking none of your assets from your estate. Its payouts come with no strings attached, so your beneficiaries can decide how to spend them. Although the funds can be used for anything, people often choose to use them for:

Funeral Expenses:

According to the National Funeral Directors Association, the average funeral today costs more than $9,000. By using the death benefit, you can assist your survivors with the cost of funeral arrangements. It can include expenses like a burial plot, cremation, final preparations, caskets, and more – all of which add up for your family.

Medical Bills:

Before death, many people experience an increase in medical bills. This may include costs associated with hospital stays, procedures, prescription medications, and specialist care. 

A nursing home or skilled nursing facility may also incur costs associated with care toward the end of life.

Debts:

People often die in debt, whether it is credit card debt or personal loans. A Guaranteed Issue Whole Life Insurance policy can be used for your funeral and burial costs, clearing all your debts, and taking none of your assets from your estate.

Daily Expenses for Family:

During the challenging days and weeks that follow a death, it may be difficult for people to work, and some may be reliant on income from a loved one who has passed away, such as social security benefits, pensions, or disability payments. 

Other Needs:

Although many guaranteed issue policies are intended to cover final expenses, the death benefit may be used for other purposes. If burial and funeral expenses have already been covered through another source, the beneficiary may choose to use the death benefit to pay for other expenses.

Conclusion

Guaranteed Issue Whole Life Insurance is a life insurance policy that guarantees the policyholder a death benefit payout no matter when they die, as long as the premiums are paid. This type of policy is a good option for people who want to be sure their loved ones will still receive a payout even if they die prematurely. 

If you are looking for a life insurance policy that will provide guaranteed coverage, then ‌consider Guaranteed Issue Whole Life Insurance – GIWL. This type of policy does not require a medical exam, which makes it a great option for individuals who have health concerns. We hope this information answers your question about Guaranteed Issue Whole Life Insurance. If not, feel free to reach out to us for more advice.

FAQ

Does burial insurance work the same way as Guaranteed Issue Whole Life Insurance?

Guaranteed Issue Whole Life Insurance

A Guaranteed Issue Whole Life Insurance policy can serve as burial insurance. Often, people looking for burial insurance are seeking small amounts of coverage, such as $10,000, which a Guaranteed Issue Whole Life Insurance policy can provide. However, some burial insurance policy applications ask for numerous health questions, and if your answers do not meet the policy’s requirements, you could be declined.

What is the most Guaranteed Issue Whole Life Insurance I can purchase?

Guaranteed Issue Whole Life Insurance

The maximum coverage level varies by company but usually does not exceed $40,000. You can even purchase many policies together. If you need more insurance and want coverage that won’t expire, Universal Life Insurance can be a solution.

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