Guaranteed Acceptance Life Insurance – How Does it Work?

by Jeff Rose on May 7, 2012 · 3 comments

guaranteed issue term life insuranceFor those who cannot get approved for a basic term life policy,  guaranteed acceptance life insurance is the solution to their problem.

Being exactly what it sounds like, there is not a single person turned away or left uninsured if you want a guaranteed acceptance life policy.

Smokers, those with medical conditions, and seniors are the majority who look to these types of policies, hoping to be able to leave something behind for their families.

Many companies have a guaranteed acceptance life insurance policy available and a little searching will do you worlds of good in getting the best rates. A policy is only as good as the company that offers it, and knowing whether the company you choose is right will take a little time and some research, but can wind up saving you quite a bit.

Note: If you are considered to be a high risk individual, see here for more high risk life insurance quotes.


What You Need to Know About Guaranteed Issue Life Insurance

The first thing to know about a guaranteed issue life policy is that no medical examination, medical history, or tests are performed; simply apply and you’re approved. The lack of underwriting means you can be approved within minutes. Many clients considered ‘high risk’ will find this type of policy to be the only available to them, and it comes with a price.

See here for more information regarding term life insurance that does not require a medical exam.

With the majority of clients being ‘high risk’ the premiums you’ll pay on the policy are more expensive. Rates will vary from company to company, but you’ll always wind up paying more than you would for a simple term life policy.

Benefits of Guaranteed Acceptance Life Insurance

Perhaps one of the most beneficial features of a guaranteed acceptance life insurance policy is that it can be whatever you need it to be, term life or permanent. With a term life policy, your rates are set and won’t increase with your age while a permanent policy will be there for the rest of your life. The freedom to choose what policy you want makes a guaranteed acceptance life plan unique.

Taking the time to search and compare premiums will help you find the best guaranteed acceptance life insurance policy available. Companies will be quick to offer free quotes and estimates, features that can help you find the right company faster. If you can’t find the information you need from their site then contact their customer service, someone in the company is sure to be able to help you.

What Questions Do They Ask?

For the most part, insurance companies will ask the same or similar questions for a guaranteed life policy. The trick is that some companies will decline you on specific conditions while others will not.

How do you know who to go through? That’s the good news. You don’t!

That’s what we’re here to do. 🙂

We just need to ask some basic questions about your previous conditions and we’ll help align you with the right guaranteed issue insurance company.

Guranteed Acceptance or Simplied Life Insurance Policy

Sample Questions

Does Guarantee Issue Insurance Offer Same Death Benefit?

In most cases, the answer is no.  Since the insurance company is taking on more risk by insuring higher risk individuals, the maximum amount of death benefit you can get is substantially lower.  Face amounts will range between $5k-$50,000.

There are some carriers that will issue higher amounts, just be prepared to pay exorbitant prices.

Sometimes, too, you won’t have the same death benefit payout getting what’s called a “graded benefit”.  A graded benefit means that if you die within 2 years of taking out the policy, you’ll only get the premiums you paid plus a a certain amount of interest.  The only way that you would receive the full benefit is if you were to die because of an accident.

Getting you the information you need to make an informed decision will show you how dependable a company can be, and with something as important as life insurance you need a company you know you can trust.

Please note:If you need a quote for a non-medical exam or guaranteed issue life insurance policy you will need to contact our office to get a quote.

{ 3 comments… read them below or add one }

Kevin September 13, 2012 at 2:34 am

Diabetic and heart stent…who will insure me life insurance?


Jeff Rose September 27, 2012 at 3:36 am

@ Kevin There are companies that specialize in guaranteed issue life insurance that will insure you. Be sure to contact our office to explore your options.


Bob March 27, 2014 at 8:08 pm

Great post! I am in the process of going Indy and I have alot of decline cases I am working on. This cleared up alot!


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