Guaranteed acceptance life insurance can be a boon to people who can’t get term life insurance coverage because of age, medical history, or other issues. Applications don’t require medical exams or even detailed questionnaires and approval is usually guaranteed. This type of policy is designed for people who don’t qualify for traditional life insurance due to higher risk factors and is usually considered a last resort.
While a guaranteed policy might be a good choice for someone with medical problems or other issues that make getting traditional life insurance impossible, it’s important to understand the potential drawbacks.
Guaranteed life premiums are high – often many times as much as you would pay for traditional life insurance. Death benefits are also typically lower than traditional life insurance. With such high premiums, it’s often worth exploring other options for meeting financial needs after your death.
It’s also important to understand the full details of the policy you’re considering. Most life insurance policies come with contestability periods; during that period, benefits are typically limited and beneficiaries may not get the full death benefit if the insured dies.
Guaranteed acceptance life insurance may be a good choice for people meeting the following conditions:
- Individuals with serious or life-threatening medical conditions.
- The elderly who are too old for traditional insurance policies.
- Individuals who have been turned down by life insurance companies.
- Those who just want enough to cover final expenses.
If you are a high-risk candidate for life insurance, it’s a good idea to speak with a qualified insurance specialist who understands your overall situation. Together, you can find answers to questions like:
- What is this life insurance for?
- Is life insurance the best option?
- How much life insurance do I need?
If guaranteed acceptance life insurance is the best option for your situation, a life insurance specialist can help you find the best policy for your needs and help make sure that you and your loved ones understand the details of the policy.