Real Guaranteed Acceptance Quotes & Cost
When you shop for guaranteed acceptance life insurance, only a few factors are considered when determining the rate: your age, gender and coverage amount. This process differs from traditional life insurance, which uses personal factors to determine your premium, including health and lifestyle habits.
Even though guaranteed issue whole life uses few factors, rates can vary by carrier. We suggest getting at least three quotes from different companies to compare rates, especially if you’re under 60.
Our quote data shows Ethos Life and Mutual of Omaha have the best guaranteed acceptance life insurance rates for shoppers 60 and younger.
Cost Range for GA Life Insurance Across 6 Major Providers
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Guaranteed Universal Life Insurance
Unlike the other types of guaranteed life insurance weve covered so far, guaranteed universal life insurance doesnt offer guaranteed approval, meaning youll likely need to pass a medical exam to qualify for this coverage.
Rather, the guarantee part of guaranteed universal life insurance refers to the death benefit, which is guaranteed for your entire life as long as you continue paying the premiums. However, guaranteed universal life insurance doesnt have all the bells and whistles of whole life insurance, so its often seen as a low-cost alternative. For instance, a guaranteed universal life policy doesnt build cash value.
Some guaranteed universal life insurance policies let you opt for a death benefit that decreases over time as your expenses decrease and your needs change. Also, with some guaranteed universal policies, you may be able to surrender your policy at certain times and get your premiums back, although this option depends on the insurer.
Coverage Amounts For Guaranteed Issue Life Insurance
The amount of coverage available for GIL is lower than that of traditional policies, with death benefits typically ranging from $1,000 to $25,000. The primary purpose of GIL is to pay for funeral and burial costs, which is why itÃ¢â¬â¢s often referred to as final expense insurance. According to the National Funeral Directors Association , final expense costs averaged $7,640 in 2020 and are rising every year, making policies with small face amounts like this desirable to some people.
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Is Alex Trebek A Life Insurance Shill
You might have heard about guaranteed issue life insurance from a television commercial. One from insurer Colonial Penn has “Jeopardy”host Alex Trebek advertising the company’s guaranteed issue life insurance. Who doesnt love and trust Trebek? Hes a national treasure, like Mr. Rogers or Vin Scully. Having him pitch insurance was a great idea.
All the information in the commercial is accuratethough most applicants will probably not be paying the teaser rate of $9.95 a month for their policy. Still, its true that insurers cannot deny you coverage, increase your premiums, or reduce your death benefit as long as you pay the premiums. These are all standard features of a whole life insurance policy, and guaranteed issue is a type of whole life insurance.
Who Is Guaranteed Life Insurance Best For
Here are the people who might benefit from a guaranteed issue policy:
- People with significant health risks
- People who have been denied coverage
- People who only want coverage for end-of-life expenses
Here are the people who should look into a different policy, like simplified whole life insurance:
- Young people under age 50
- People with no or few health risks
- People who want a lower monthly premium
- People who want a high death benefit
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Cost Of Guaranteed Issue Life Insurance
The third limitation is the cost.
A life insurance policy in which no health qualifications are required is obviously a high-risk policy.
And in the way that insurance works, high risk translates into a higher premium.
For example, you may pay $500 per month for a policy with a $25,000 death benefit.
That translates into $6,000 per year, which means the cost will exceed the benefit if you live much more than four years.
But generally speaking, a guaranteed issue life insurance policy will only be issued to someone who doesnt expect to live that long.
If you knew you were, the better strategy would be to simply move $500 per month into a savings account, and allow the money to build in lieu of a life insurance death benefit.
This is the major disadvantage with guaranteed issue life insurance. Its certainly very expensive coverage for the benefit it provides.
But for the person who needs life insurance now, and doesnt know how long he or she will live, it can be the right choice.
What Is Fully Underwritten Life Insurance
Fully underwritten life insurance, also known as medically underwritten insurance or traditional insurance, is for people in good health with no serious medical or lifestyle concerns.
Applying for a fully underwritten policy typically requires a medical exam done by a nurse visiting your home. This medical exam can consist of:
- Getting your height and weight measured
- Providing blood and urine samples
- Getting your blood pressure checked
- Potentially taking other tests, such an electrocardiogram
The results for these tests and samples typically take a few days to sometimes a few weeks, which is why this process takes the longest to get approved for. However, if you have exceptionally good health, you might qualify for an even better premium rate than the one you were quoted.
In 2017, Manulife Insurance, Canadas largest life insurance provider, introduced accelerated underwriting for life insurance policies. This new process reduced medical underwriting and has resulted in quicker underwriting decisions.
Since that time, many life insurance carriers in Canada have followed which has resulted in several options for approval with no medical tests. The COVID-19 pandemic in 2021 significantly impacted the life insurance underwriting process as companies expanded their no medical limits. Although deemed temporary measures, many expect these accelerated underwriting guidelines to remain permanent.
As of 2021, the following limits are available with no fluids:
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What You Need To Know About Graded Benefits
In addition to the higher premiums, one of the main drawbacks to a guaranteed issue life insurance is that your beneficiaries wouldn’t receive a full death benefit until your policy has been in force for a specific length of time . In the insurance industry, this is known as graded benefits.
If you were to die during the first few years of the policy, most life insurance companies will generally issue a refund of your premiums to your beneficiaries in lieu of the actual death benefit. According to Investopedia, this practice prevents immediate large payouts for critically ill individuals who may wish to sign up for a policy just in time for their loved ones to receive a death benefit.1
If you have a pre-existing condition, guaranteed issue life insurance is not the only option for individuals with pre-existing conditions. Policies vary by insurer, but some may insure people with chronic conditions. Learn more about your options if you are someone with a pre-existing condition.
Guaranteed Issue Vs Simplified Vs Fully Underwritten Life Insurance Policies
What option is best for you? How do they affect your life insurance
6 Minute read
Whether its your first time buying life insurance, or youve been browsing for a while, youve probably come across a few different options for applying for either term or permanent life insurance. Heres what you need to know about the difference between the different types of life insurance: fully underwritten, simplified issue, and guaranteed issue life insurance.
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No Medical Exam Life Insurance Policy Alternatives
Simplified issue is a type of permanent life insurance that lets you skip the exam by answering a few questions about your health. Similar to guaranteed issue, other life insurance policies with no medical exams have smaller death benefits compared to products with full medical underwriting.
Accelerated underwriting relies on “big data” to calculate risk and eligibility. Required information may include your age, gender or smoking habits. This data is then compared to life expectancy patterns within similar groups of people to determine rates. As a result, applicants can often avoid the exam and still qualify for coverage.
Group life insurance policies obtained through employers dont typically include an exam. Medical questionnaires may be required and certain health conditions might not be covered. They typically offer higher benefits than standard guaranteed issue products. Whats more, eligible applicants can convert their group policies to individual plans without re-examination.
Accidental death and dismemberment policies dont typically require an exam or health questionnaire. However, these types of policies cover only eligible accidents with restrictions rather than natural deaths.
What Other Options Are There Besides Guaranteed Issue Life Insurance
Your life insurance rates will always be based on three criteria: your age, your health, and the amount of insurance you want to purchase. If you are looking for more coverage at the lowest possible rate, its typically never too late to consider term life insurance. We mention this because of the years we have found seniors who think they must automatically purchase whole life insurance when in fact they might qualify for term life insurance.
Although term life insurance is typically for seniors who are in good health, there are many out there who are and as such, should see if they qualify for more life insurance for less money. Yes, term insurance is temporary but most policies provide a conversion privilege that will allow the policyholder to convert the policy to permanent insurance before the policy expires.
Always Speak with an Experienced and Reputable Agent
If like most people, your intention is to purchase life insurance at the lowest possible rate from a highly-rated carrier who will be there when you need them, always speak with an independent life insurance agent like the pros at LifeInsure.com to find a solution that will meet your needs and your budget.
When you purchase your life insurance coverage directly from an insurance company or from a company agent you are severely limiting your choice of insurance companies and your choice of insurance products.
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Low Death Benefit Amount
You can get up to a $1 million traditional life insurance policy, and some companies will offer even more coverage on a single policy. But most GI life insurance policies have a maximum death benefit you can get, regardless of income and need. Most companies will only allow up to a $25,000 death benefit amount, but there are a few companies that offer up to $50,000 if you can afford it.
When you are getting quotes for life insurance, ask what the maximum death benefit amount is and the cost. If you need more than what the company is offering, let your agent know so they can get you a quote for the highest death benefit allowed.
Who Is Guaranteed Issue Life Insurance Typically For
People who have serious medical conditions like cancer are good candidates for guaranteed issue life insurance policies. Thats because it can be very difficult to qualify for other policies with serious medical conditions such as this.
But that doesnt mean guaranteed life insurance is your only option. For instance, you can buy burial insurance whole life policies without having to sit for a medical exam. Burial insurance can typically be issued by answering health questions on the application.
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Medical Conditions That Typically Get Declined For Traditional Policies
Below is a list of the most common types of medical conditions, situations, and medications which may cause a life insurance company to decline your application for standard life insurance.
Keep in mind that there are mild forms of many of these diseases. Mild forms of many of these will still qualify for traditional insurance. This means that you can get more coverage for less money. So dont assume youll be declined if you have or are taking something on this list.
Instead, tell your agent about it up front so they can see what they can do for you.
Here is the list of medical conditions and situations where many people have experienced declines for life insurance. In these cases, the conditions are either life-threatening or not medically controlled:
- Other terminal Illness
Who Should Buy A Guaranteed Issue Life Insurance Policy
Guaranteed issue life insurance should be a last resort. After exhausting the traditional policy options, this is a means to protect your family. Most people looking for guaranteed issue have been declined or postponed for traditional policies.
Also known as GI or guaranteed acceptance, this particular form of insurance best suits people who meet the following criteria:
- Permanently disabled
- Permanently residing in a nursing home
- Repeatedly declined for life insurance
- Social security or SSDI as the sole source of income
- Cannot buy life insurance through an employer
Guaranteed issue is also a form of final expense life insurance which you may have seen advertised on TV. Keep in mind that there are many different types of final expense life insurance and they are not all the same.
If you arent sure whether guaranteed issue life insurance is for you, then speak with an independent agent about your options. Independent agents work with dozens of companies so they may be able to find something better suited to your needs and your wallet.
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Shopping For Guaranteed Issue Life Insurance
When buying life insurance, be aware that most policies have a graded period of two to three years. If you die during this period, your beneficiary may not get the full death benefit. They will get back the premiums you paid with some interest. After that period is over, they will get the full benefit.
Guaranteed Issue Life Insurance: Answers Revealed
There are many types of life insurance coverage that protect from unforeseen circumstances.
Senior life insurance provides an affordable way to get permanent coverage to pay for funeral expenses. The best guaranteed issue life insurance companies provide reliable coverage at a low monthly cost.
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Find Cheap Life Insurance In Your Area
Guaranteed acceptance life insurance, also called guaranteed issue or GI life insurance, is typically a whole life insurance policy with a limited death benefit.
As with other whole life insurance policies, guaranteed issue policies will build a cash value over time, and coverage lasts as long as you continue to pay the premiums. Unlike most life insurance policies, there are no health questions and no medical exam when applying. However, death benefits are typically restricted to less than $25,000. Quotes will also be significantly more expensive since the insurer has no health details and has to assume you’re high-risk.
Quotes are entirely based on your age, location and gender. Given the simplicity of the application, you can often get instant coverage and in many cases, you can purchase a policy online.
Pros Of Guaranteed Acceptance
With no health questions or medical exams, the application process for guaranteed acceptance life insurance is easy and usually only takes a few minutes. After completing the application, you are approved if you meet the eligibility criteria.
Most guaranteed issue policies build cash value over time. You can borrow against the cash value, but any outstanding loan will reduce the death benefit paid to your beneficiary if not paid in full before death. When you die, your beneficiary receives the death benefit less any loan still due.
As the name suggests, guaranteed acceptance life insurance means you are guaranteed to be accepted once you apply. As long as you continue to pay your premiums on time, the policy will stay in force until death. Some companies have a “paid-up” age, where the policy is considered paid in full until death.
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Simplified Issue Life Insurance
Simplified issue life insurance is also a kind of permanent life insurance that doesnât require medication. However, unlike guaranteed issues, you will have to answer a few simple questions about your health and lifestyle. Also, the coverage is not guaranteed. The life insurance company can turn you down if it thinks you are too risky to insure.
If you donât qualify for a traditional life insurance plan, consider giving the simplified issues a try first. It is less expensive than guaranteed issue life insurance and doesnât always include a waiting period.
Caa Guaranteed Issue Life Insurance
Life insurance is one of the most important things you can do to protect your loved ones. But there comes a time when purchasing it becomes more difficult, due to advancing age or medical history. At CAA, we believe neither should be a barrier to protecting your family. So, we created a plan that gives you coverage with no medical exam at the time of application.
CAA Guaranteed Issue Life Insurance is one of the simplest types of coverage money can buy. It can help you leave $5,000 to $25,000 of tax-free cash for your loved ones to pay off debt, help cover a childs education, help your spouse live a more comfortable life, pay for your final arrangements and more.
Whats The Difference Between Guaranteed Issue And Simplified Issue Life Insurance
Guaranteed issue and simplified issue life insurance are both types of burial insurance. However, guaranteed issue insurance is better for seniors or people who dont qualify for any other type of life insurance because almost no one is turned down.
Simplified issue life insurance is best for seniors or people who cant qualify for a traditional life insurance policy, but who are only a moderate health risk. A detailed medical questionnaire is required and slightly higher coverage amounts are available.