Guaranteed Issue Whole Life
Have you been turned down for life insurance before or do you have some major health issues and worry that you
can't obtain life insurance coverage? Guaranteed issue life insurance might be right for you. This
type of coverage is exactly what it sounds like- a life insurance policy that is guaranteed
to be approved. These types of policies are usually for those applicants who would normally
be declined because of health problems such as cancer, heart conditions, stroke, kidney disease,
uncontrolled diabetes, and even HIV.
How does guaranteed life insurance work?
A guaranteed issue life insurance policy has graded benefits. This
means that the policy will not pay out the full death benefit until after the second year. For
example, if you pass away within the first two years after getting your policy, your beneficiaries will only
get back the premiums that have been paid into the policy. Some companies will pay out a percentage
of the death benefit if you die in the first two years. If you pass away in year one, your beneficiaries might get
25% of the death benefit. In year two they will get 50% of the death benefit. After that they are eligible to
receive 100% of the death benefit when you pass.
Guaranteed issue policies are:
- Guaranteed- no one is turned down
- Permanent whole life insurance
- Graded benefits that pay out over time
- Level premiums for life
- Non-cancellable as long as you pay your premium
If you have major health issues, but you need a life insurance policy to cover your funeral and other final
expenses, then a guaranteed issue policy is right for you.