Guaranteed Accepted Life Insurance

If you never took action on getting a life insurance plan or just procrastinated a little too long to get a policy, you may not be alone. 

Many people decide to get insurance when they are either

1. Feel like they finally need it but their health conditions have inhibited them to qualify for a plan.
2. Original plans have become too expensive to afford or the term policy you had has expired.

But if you’re nearing the end of your golden years with no life insurance in place, you may be leaving your family or loved ones to cover your final expenses, such as outstanding bills and burial/funeral expense

Even if you’ve been turned down for life insurance in the past or neglected to buy it while you could afford the premiums, you may want to explore guaranteed acceptance life insurance.

What is Guaranteed acceptance life insurance

Guaranteed life insurance is a life insurance policy that you can’t be turned down for as long as you’re within a certain age range. Guaranteed issue policies have been more popular than ever as the baby boomer generation heavily rely on these plans to get covered. It’s a policy that covers you your entire life with the purpose of paying for your final expense or burial expense.

Unlike whole or term life insurance, guaranteed acceptance life insurance has only one requirement: the insured has to be between the ages of 50 and 80. There is no medical exam required and applicants cannot be turned down for medical reasons.

Is there a catch? 

While these plans are great and very popular, we must keep in mind some of the factors to take if this plan is right for you. Unlike traditional whole life policies, guaranteed acceptance life insurance builds up very little cash value (these plans were not meant to utilize the insurance for its cash value)

The policy has a two year graded death benefit limitation. It applies to the first two years of coverage when the policy is issued. If death occurs within the first two policy years for any reason other than an accident, all premiums plus 10% interest shall be paid to the beneficiary. If death is due to accidental causes within the first two policy years, the full death benefit shall be paid to the beneficiary.

Who is it for and what are the benefits?

Guaranteed acceptance life insurance policies are designed to meet the needs of people approaching the end, who worry they don’t have enough savings to cover final expense costs and want to avoid the burden of their family. This option may be just right for someone who can’t get a more traditional policy, either because a pre-existing medical condition makes them ineligible or because their age would make a traditional policy’s premiums prohibitively expensive.

Some of the benefits are listed below

• No medical exam is necessary for a guaranteed acceptance life insurance policy. The only condition for the policy owner is that you are between 50 and 80 years old.
• Benefits are not subject to Federal tax if paid to a named beneficiary
• Once coverage begins, and for as long as premiums are paid, the insurance company cannot cancel your coverage but you have the option to cancel the coverage anytime.
• Premiums will never increase and are locked in once you start the plan (pricing is based on your current age)