Guaranteed Acceptance Life Insurance – How Does it Work?

by Jeff Rose on May 16, 2017 · 3 comments

in No Exam Life Insurance, Term Life Insurance

guaranteed issue term life insurance

Life insurance is one of the most important investments that you’ll ever make for your family. It’s one of the only ways that you can give them protection, regardless of what happens to you tomorrow. There are dozens of factors that go into deciding which insurance plan is best for you, it isn’t an easy process, but for anyone that is in poor health or has any severe health complications, it can be even more difficult. If you’ve been declined coverage from an insurance company, don’t assume that you can’t get the protection that your family needs. There are plenty of affordable insurance options.

For 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. On paper, this sounds like an excellent option for insurance coverage. Everyone can get insurance protection, but there are a few different factors that you’ll need to consider before you go out and buy a guaranteed acceptance life insurance plan.

Even if you’ve been declined in the past for life insurance, this may not be your only option, but it’s important that you understand all of your options and that you realize that regardless of your health or any pre-existing conditions that you have. Nobody should have to go without life insurance protection, and these guaranteed acceptance plans can ensure that you have the policy that you need.

Smokers, those with medical conditions, and seniors over 50 seeking life insurance with health conditions are the majority who look to these types of policies, hoping to be able to leave something behind for their families. The people that fall in these categories are “high-risk” applicants, which means that the insurance company is going to be wary of giving these applicants an insurance plan, but there are some companies that specialize in working with “high-risk” applicants. You should apply with those companies before you resort to a guaranteed acceptance plan.

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.

Every insurance company is different, and when it comes to guaranteed acceptance plans, the quotes that you get could vary drastically. It’s important that you get dozens of quotes before you decide which plan is going to work best for you. Comparing plans could save you hundreds of dollars every year.

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. If you’re looking to get the most affordable life insurance protection, then you’ll need to find a company that will accept you with one of their traditional plans.

Benefits of Guaranteed Acceptance Life Insurance

There are some obvious advantages to these guaranteed acceptance life insurance plans, the biggest one is that anyone can buy one of these plans. Unlike a traditional insurance plan that requires you to go through medical underwriting, anyone can purchase one of these plans and get the coverage that they want. Nobody should have to go without the insurance protection that their family needs.

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.

Another benefit to these plans that you won’t find with other types of insurance coverage is how quickly that you can be accepted for the insurance policy. With a traditional life insurance policy, you’ll be required to take the medical exam and wait for the results to be reviewed by the insurance company. The whole process can take several weeks or even up to a month. If you’re looking to get insurance coverage as quickly as possible, then one of these guaranteed acceptance life insurance is the best option.

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. For most applicants that are looking for life insurance protection, this isn’t nearly enough life insurance. The smaller plans would leave their loved ones with a massive amount of debt leftover.  Which means that if you’re looking for an insurance policy that is going to give you more coverage than that, you’ll have to go with a traditional life insurance plan that requires that you take the medical exam. The other option is that you can buy two smaller plans to get the coverage that you need.

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 certain amount of interest. These graded benefit clauses are the way that the insurance company offset the additional risk. The majority of no-exam plans are going to come with the graded benefit components. This shouldn’t keep you from purchasing one of these plans, but it’s something to be aware of when you’re shopping for life insurance. 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.

How Much Life Insurance Do You Need To Buy?

It’s vital that you get the right amount of life insurance protection that you and your loved ones need to how the money that they need if anything tragic were to happen to you. Getting the perfect size life insurance policy is a delicate balance between not paying for more insurance than you need, and being sure that you have enough coverage for your loved ones. There are several different factors that you’ll need to account for when you’re calculating your life insurance needs.

The first thing that you need to look at is all of your debts and final expenses that you would leave behind to your loved ones. The primary goal of your life insurance is to give your loved ones the money that they need to pay off any final expenses that they would be responsible for if anything tragic were to happen to you. If you passed away, your mortgage bill, car payments, and much more would all fall onto your family members to pay for, which can make an already difficult situation a thousand times worse. If you’ve already paid off your mortgage, and you don’t hold a lot of debt, you can consider getting a smaller insurance plan, like one of the guaranteed accepted life insurance policy.

The next factor to consider is your paycheck. If you’re one of the main income earners in your household, your family would struggle if something tragic were happen to you unexpectedly, which is where your insurance plan comes in. Your insurance plan will give your family the money that they need to replace your paycheck without having to sacrifice their standard of living.

After that, you should also consider any future expenses that your family may run into. You can’t predict the future, but there are some bills that you know they will encounter. The best example of this is college tuition. When your children are heading off to college, your spouse will have to pay for those bills with only one income, which can be difficult. If you planned ahead when shopping for life insurance, your family will have the money that they need.

There are more factors that you’ll need to look at based on your situation to determine how much life insurance you and your family need. Our independent insurance agents can help you decide how much insurance that you need, and they can also help you find the perfect plan to fit your needs. These guaranteed issued plans are a great way to get the coverage that you need, but they aren’t for everyone.

Is A Guaranteed Acceptance Life Insurance Policy Right For Me?

Because there are so many different types of insurance policies, it can be difficult to decide which type of plan fits your needs. While these guaranteed accepted plans are an excellent option for anyone that’s been declined for life insurance policy, don’t automatically assume that they are your only option. If you have severe preexisting conditions, like heart problems or diabetes, you may think that you can’t get affordable life insurance, but that couldn’t be further from the truth.

Every insurance company is different, which means all of them are going to view your applicant through different medical underwriting. There are dozens of insurance companies that specialize in insuring high-risk applicants with various conditions and health problems. These companies have experience working with applicants that are in less than perfect health and they will give you a much greater chance of being accepted for life insurance and will deliver much lower rates.

Because there are thousands of different insurance companies on the market, you could spend weeks calling different agents and answering the same questions over and over, or you can let us do all of the work for you. We are independent insurance agents, which means that we don’t only work for one single company, instead we represent dozens of highly-rated companies across the United States. That means that we can bring all of the best rates directly to you. No hassle of having to call all of the companies yourself.

Additionally, our agents have years of experiencing working in the insurance market, which means they know the companies that specialize in high-risk applicants and can get you the best chances of getting insurance coverage at an affordable rate. Going with a life insurance plan that requires medical underwriting is going to be much cheaper than a plan that is no exam. These guaranteed issue policies should always be used as a last resort for life insurance, unless you have a specific reason for choose one of these plans.

What You Need To Know About Guaranteed Acceptance Life Insurance Policies

Because life insurance is one of the biggest purchases that you’ll ever make for you and your family, it’s vital that you make the best decision. There are so many different things that you’ll need to consider when you’re trying to make that decision.

If you have any questions about guaranteed acceptance life insurance plans or any of the other options available to you, please contact one of our agents today and we would be happy to answer those questions and ensure that you’re getting the best coverage available for your loved ones.

You never know what’s going to happen to you tomorrow, which means that you never know what’s going to happen to you tomorrow. Don’t wait any longer to get the insurance protection that you and your loved ones need. If you were to pass away unexpectedly, your loved ones will be responsible for all of your final expenses and debts, which means that they would be stuck under of mountain debt. We can make the process as quick and simple for you. We know that your time is valuable, won’t waste it calling different insurance agents.

{ 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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