Guaranteed issue life insurance plans are an important part of planning for your future, especially as you age.
If you’re over the age of 50 and looking for ways to ensure that your loved ones will be taken care of in case something happens to you, a guaranteed issue life insurance plan could be just what you need.
But before investing in one, it’s important to understand how they work and who should get them. Here, we’ll discuss the ins-and-outs of guaranteed issue life insurance plans so that seniors can make informed decisions about their futures.
We’ll cover topics such as how these policies work, when is the best time to invest in one and more importantly – how much coverage do you need?
Table of Contents:
- What is a Guaranteed Issue Life Insurance Plan?
- How do they work?
- Who are they best for?
- How much coverage do you need?
- FAQs in Relation to Guaranteed Issue Life Insurance Plans
- Next Steps
What is a Guaranteed Issue Life Insurance Plan?
A guaranteed issue life insurance plan is a type of policy that does not require a medical exam or health questions in order to be approved.
This makes it an attractive option for those who have serious health conditions and would otherwise be unable to get coverage.
Policies are designed specifically for seniors over the age of 50, as they typically provide smaller amounts of coverage than traditional plans and come with higher premiums due to their lack of underwriting requirements.
Guaranteed issue life insurance works by having applicants answer simple questions during the application process:
- Physical address
You skip the steps of undergoing a medical exam or providing other medical information, such as lab results or doctor’s notes. In fact, you are not asked any health questions whatsoever.
When approved, as long as you meet the age requirements, these policies will pay out upon death regardless if it was caused by illness or accident.
Related – How to file a life insurance death claim.
Coverage is almost always permanent. As long as you make your premium payments, you cannot outlive your coverage.
However, there are almost always restrictions on how soon after purchase benefits will begin paying out – typically two years.
Guaranteed issue life insurance plans are best suited for seniors over the age of 50 who have pre-existing medical conditions, such as uncontrolled diabetes, that would make them ineligible for traditional life insurance policies due to their high-risk status.
In other words, guaranteed issue plans are best for seniors who would otherwise be ineligible for burial insurance coverage.
These plans also offer peace-of-mind knowing that even if something were to happen unexpectedly, loved ones would still receive financial protection without any hassle or delay in payment processing times like with other types of policies.
When should you get one?
If you have loved ones who depend on you financially, the best time to purchase life insurance was yesterday. The second best time is today.
Rates do vary by age and gender, so the sooner you purchase coverage, the better. Consider the following quotes based on age:
The longer you wait to get coverage, the more expensive a policy becomes and your dependents are at financial risk.
How much coverage do you need?
The amount needed depends largely on individual circumstances such as current income levels and outstanding debts or expenses.
Generally speaking, it is recommended that seniors carry at least enough coverage to pay for the price of a funeral.
That way, loved ones are not burdened with final expenses or find themselves stuck searching for free places for burials.
A guaranteed issue life insurance plan is a great option for seniors looking for coverage without the hassle of medical exams or underwriting. Next, let’s explore the benefits of this type of policy.
Key Takeaway: Guaranteed issue life insurance plans are an attractive option for seniors over the age of 50 who have pre-existing medical conditions that would make them ineligible for traditional policies.
How Does Guaranteed Issue Life Insurance Work?
The process of buying a guaranteed issue life insurance plan is simple and coverage is often secured same-day.
An independent agent who specializes in burial insurance for seniors will walk your through the quick steps. You will share basic information about yourself on the application:
- Full name.
- Date of birth.
- Physical address.
- Desired coverage amount (e.g. $20,000 policy).
- Beneficiary information.
- Payment details.
The insurer will still review the application, but approval is guaranteed as long as you meet the age requirements. These plans typically have lower death benefits and higher premiums than traditional policies.
Remember, the coverage amount for these types of plans usually range from $2,000 up to $25,000 in coverage, depending on the company and age of the applicant.
Premiums are usually based on age and gender rather than health status or lifestyle choices like smoking or drinking alcohol.
Beneficiaries receive their benefit upon filing a life insurance death claim. Just remember that guaranteed issue life insurance plans include a waiting period of typically two years after the initial purchase of the policy before the full death benefit is paid out.
This makes the guaranteed issue policies an attractive option for seniors who may be unable to qualify for other types of life insurance due to poor health, such as a terminal illness diagnosis. .
Limitations Of Guaranteed Issue Life Insurance Plans
Guaranteed issue life insurance policies do come with some restrictions, though. Insurers limit how much coverage you can buy so it’s important to read your policy carefully before signing up for coverage.
Note – if you need more coverage than what one single policy can offer, ask your life insurance agent about stacking policies.
Overall, guaranteed issue life insurance plans offers an option for burial insurance for elderly individuals, providing peace of mind – knowing that their loved ones will be not be burdened with burial expenses, like cremation costs, upon passing away.
Without having to worry about being denied coverage due to pre-existing conditions, these policies provide an affordable way for seniors who might not qualify for traditional policies to get financial protection in case something unexpected happens during retirement years.
Key Takeaway: Guaranteed issue life insurance plans provide seniors with a way to get financial protection in case of unexpected events during retirement or as a means to provide funds to cover the price of a funeral.
Who Is Guaranteed Issue Life Insurance Plans Best For?
Guaranteed issue life insurance is best suited for people who want a modest amount of burial insurance coverage without having to worry about being declined due to their health condition or lifestyle choices.
Burial insurance is worth it if you don’t have time or resources needed for a full medical exam required by most traditional policies before coverage issuance.
In addition, these policies potentially come with living benefits that allow access to cash value while still alive, should you become critically ill or disabled.
This feature allows you access funds when needed without having to wait until after death.
Finally, guaranteed issue life insurance is often used as final expense protection since it provides enough money upon death.
That way, loved ones won’t have financial burden associated with funeral or cremation costs, and other expenses related to end-of-life arrangements, such as burial plots, flower arrangements and headstones.
Key Takeaway: Guaranteed issue life insurance plans are an ideal option for seniors over 50 who have difficulty obtaining traditional life insurance coverage due to pre-existing medical conditions or other circumstances.
How Much Coverage Do You Need?
When determining how much life insurance coverage you need, it is important to consider the following:
- Your age
- Financial obligations
If you are over the age of 50 and have dependents or other assets that would be affected by your death, then a guaranteed issue life insurance plan may be right for you.
However, the cost of burial insurance with guaranteed issue coverage is typically higher than those offered by traditional insurers – since they do not require underwriting.
It is also important to consider your current financial situation when deciding how much coverage you need from a guaranteed issue policy.
For example, consider any minor outstanding debts, such as a credit card balance, that would need to be paid off in the event of your death, as well as any ongoing expenses that will still need to be covered after you pass away.
You should also factor in any additional funds needed for final expenses like funeral costs and burial fees which can add up quickly if not accounted for ahead of time.
Common Burial Insurance Amounts
While everyone’s monetary requirements vary, there are coverage amounts that many seniors purchase in order to ensure their end-of-life expenses are covered.
With guaranteed issue life insurance plans, seniors typically buy the following face amounts:
Finally, take into account any existing assets that could help cover some of these costs upon your passing – such as investment accounts or retirement savings plans.
That way, you don’t end up paying more than necessary on a life insurance policy when there are other resources available to cover some of the financial burden associated with death and dying expenses.
By taking all these factors into consideration when calculating how much coverage one needs from a guaranteed issue life insurance plan, seniors can ensure they get the protection they need while avoiding unnecessary costs associated with purchasing too much coverage.
Key Takeaway: When determining how much life insurance coverage you need, it is important to consider your age, health, income, debts and financial obligations.
FAQs in Relation to Guaranteed Issue Life Insurance Plans
What is a guaranteed issue life insurance policy?
To review, guaranteed issue life insurance provides burial insurance coverage regardless of the applicant’s health history, or lifestyle.
This type of policy typically has limited benefits (coverage is typically capped at $25,000) and higher premiums than other types of policies.
But, it can be an attractive option for seniors who may have difficulty qualifying for traditional life insurance due to their health status.
Remember, guaranteed issue life insurance plans provide coverage without requiring medical exams or answering any health questions, making this form of burial insurance worth it for many seniors.
The main benefit is that it guarantees acceptance without having to go through the process of answering detailed medical questions and taking a physical exam.
What does a guaranteed issue insurance policy not have?
A guaranteed issue insurance policy does not have any medical underwriting or health questions.
This means that the insurer will accept anyone who applies for coverage regardless of their current health status, pre-existing conditions.
Additionally, there is almost always a waiting period (often two years) before certain benefits are available after purchase.
What is the best guaranteed issue life insurance company?
Your specific needs will determine the best life insurance company to purchase a guaranteed issue life insurance plan with.
First and foremost, be sure to verify with an independent life insurance agent that you do not qualify for other forms of burial insurance, first. Why? Guaranteed issue coverage should be considered a last resort.
While there are many highly-rated carriers, we recommend evaluating the specific policy, AIG Guaranteed Issue Whole Life (GIWL). This particular policy offers up to a $25,000 burial policy, beneficial riders, and excellent customer service.
Is guaranteed life insurance worth it?
Yes, guaranteed life insurance can be a valuable asset for those looking for burial insurance for seniors. It provides peace of mind knowing that your loved ones will be taken care of in the event of an untimely death or as a means to pay for funeral expenses.
Keep in mind however, guaranteed life insurance does not provide coverage for health needs. It only provides life insurance coverage.
Health insurance is different. Plans such as the following need to be evaluated separately:
How much guaranteed life insurance can I get?
The amount of guaranteed life insurance you can get primarily depends your age and budget.
Generally speaking, seniors over the age of 50 may be eligible for up to $25,000 in coverage, and sometimes more.
Guaranteed issue life insurance plans are a great option for seniors over the age of 50 who want to ensure their loved ones are taken care of after they pass away.
These plans offer coverage without medical exams or health questions and provide peace of mind that your family will be financially secure in the event of your death.
It is important to consider how much coverage you need when choosing a plan and make sure it fits within your budget. Guaranteed issue life insurance plans can help give you and your family the security they deserve.
Seniors have many important decisions to make when it comes to their financial security. It is essential for seniors to consider the options available in order to secure a stable future.
iSeniorBenefits provides guaranteed issue life insurance plans tailored specifically for the senior market, including final expense.
We also provide Medicare, health and cancer plans. With our experienced team of experts at your side you can trust that you are making an informed decision about securing your long-term financial stability.
Don’t wait any longer – contact us today and let us help you find the best plan possible.