Are you finding it difficult to obtain a basic term life insurance policy? If so, a guaranteed acceptance policy may be the answer.
As the name suggests, with this type of coverage nobody is turned away. If you need a policy you can buy one, guaranteed. This is perfect for many groups of people, including but not limited to:
- Senior citizens
- Those with medical conditions
What do I need to know?
Above all else, you need to remember one thing: with guaranteed acceptance life insurance there is no medical examination. Instead, all you have to do is apply to be approved. With no underwriting, you can receive your approval within a matter of minutes.
Although this is a great option for high risk consumers, it does come at a price.
Since the majority of applicants are in the high risk category, this type of policy is more expensive. While rates will vary from one company to the next, in the end you are going to pay more than you would for a standard term life insurance policy.
Benefits of a Guaranteed Acceptance Policy
At this point, you are probably aware that the primary benefit is the ability to avoid a lengthy underwriting process. Your approval is guaranteed.
Another benefit of a guaranteed acceptance policy is that you can opt for permanent or term life coverage. This gives you the same freedom of choice that other consumers have when buying a policy. If you need coverage for a predetermined period of time, term life insurance is your best option. On the other hand, you can opt for whole life if you want a policy that stays active until the day you die.
You Still have to Answer Questions
Just because you are interested in a guaranteed acceptance life insurance policy does not mean you get to forgo the application process.
You still have to answer questions regarding the following details:
- Health history
- Height and weight
- Type of policy requested
- Death benefit requested
Can I get the same Death Benefit?
Generally speaking, the death benefit associated with a guaranteed acceptance policy is lower than traditional coverage. Since the insurance company is taking more of a risk, the maximum allowable death benefit is typically lower.
Note: you may be offered more coverage, but be prepared to pay an ultra-high premium.
What to do next?
We have all seen the commercials for guaranteed acceptance life insurance. They make it sound so easy to buy a policy.
Even though there is no underwriting and the application process is quite simple, there are still details to consider. Here are the types of questions to ask yourself:
- Will I be able to get the right amount of coverage through this type of policy?
- Which company is best known for its guaranteed acceptance coverage?
- How much will it cost to get a large enough death benefit to make the premium payment worth while?
If you have been denied time after time for traditional life insurance, you should begin to consider the benefits associated with a guaranteed acceptance policy. At the very least, you can decide if this type of coverage is right for you.
For more check out this video about how the process works: