What is Guaranteed Issue Life Insurance?

If you have ever applied for a normal life insurance policy, you probbly had to spend quite a bit of time answering detailed questions about your health. Sometimes you even need to tell the insurer about the health history of your parents and other family members. Beyond health history, you may need to expose other personal details like your smoking habits, arrest records, prescriptions, and other things you would rather keep to yourself.

A guaranteed issue life insurance policy does not require an applicant to answer health questions. In fact, on some applications, you can simply check the fact that you do not want to answer questions. Now you will have to specify some information like your age and zip code, and rates will depend upon these things. But you do not need to tell the insurer if you smoke a pipe or take blood pressure medication at all.

You can find Guaranteed Life Insurance for seniors and others who do not want to answer so many personal questions. Sometimes, these policies can be a good alternative. Now, these plans are not for everybody, but for some people, they are a good solution.

How Can Guaranteed Issue Life Insurance Work?

You must wonder how life insurance companies can make any money if they hand out life insurance to everybody who wants it. Terminally ill people could sign up, knowing they will not survive long enough for an insurer to collect many premiums. But do not worry about life insurance companies. They have this figured out.

Waiting Periods – See, these type of policies have a waiting period that may last 2 or 3 years. If the insured person expires before the waiting period ends, the policy may refund premiums (sometimes with interest), or may pay a portion of the full face value, but it will not pay out the whole amount. After the specified waiting period ends, the policy will pay out the whole amount.

So if you are fairly healthy and have no problem answering health questions, you may be better off finding another policy with an immediate death benefit. You will also probably find cheaper life insurance if you do this. But if you do not want to answer questions, you may consider guaranteed life.

Find the right solution for life insurance – Life Insurance For Older People.

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