An application and a phone call are usually required in order to buy guaranteed-issue insurance. After you submit your application, an agent might contact you to confirm that you don't have any disqualifying conditions or that you are buying the right coverage.
Both types of burial insurance include guaranteed issue and simple issue life insurance. But, guaranteed-issue insurance is better for seniors who can't be turned down for other life insurance.
Seniors and those at moderate to high risk are best served by simplified issue life insurance. An extensive medical questionnaire is required. A slightly higher coverage amount is available.
Although exam anxiety is a concern, life insurance can be a great option. Don't delay in deciding to get coverage. Guaranteed-issue life insurance might be an option if your anxiety is causing you to procrastinate.
If the policyholder of guaranteed life insurance dies before the waiting period is over, the beneficiary will not receive the death benefit. The beneficiary might be able to get all of the premiums with interest back from the insurance company.
Imagine your policy offers a graded benefits. If you are unable to work or have a family member, your beneficiaries will be refunded 110% of the premiums paid. In this case, the policy's premiums will be refunded to your beneficiaries at 110%. If you die by suicide, or because of an accident in the first two years of coverage, your heirs receive a 100% refund. Your beneficiaries would receive $100 to $110 depending upon the cause of your death.
For guaranteed issue policies, you don't need the same underwriting information. A guaranteed life policy will cost more than a policy that is medically underwritten. This is the compromise to eliminate the need for medical tests and exams.
A simplified issue policy in life insurance is ideal for seniors and people with moderate to high health risks who are unable to qualify for traditional life insurance policies. It is necessary to fill out a medical questionnaire. You can also get slightly more coverage.
Guaranteed issue life insurance is the best type of burial insurance. For a 60-year old, it can cost upwards of $150 per monthly. The death benefit amounts, which top off at $25,000., are still low.
Premiums for guaranteed issue life insurance tend to be higher than for policies that require medical underwriting, since insurers assume more risk by offering coverage without health questions. The cost will depend on factors such as your age, gender, and the amount of coverage.
While you can't be denied coverage for health reasons, most policies include a waiting period, often 2-3 years, before the full death benefit is paid out. If you die during this period, the beneficiaries may only receive a refund of premiums paid, plus interest.
Coverage amounts for guaranteed issue life insurance are generally lower than traditional life insurance policies, ranging from $5,000 to $25,000, depending on the insurer. This is often intended to cover final expenses such as funeral costs.