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What is Guaranteed Issue Life Insurance?

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By Byron Udell | March 3, 2020

Guaranteed Issue Life Insurance, also called Final Expense or Burial insurance, is a kind of Permanent life insurance specifically designed to provide the financial resources to pay for:

  • Funeral services
  • Burial (casket, burial plot, headstone, etc.)
  • Hospital bills
  • Debts you don’t want your family to inherit
  • Other costs associated with end of life

Typically, a small Whole Life policy, Guaranteed Issue life insurance is recommended for people who can’t qualify for traditionally fully underwritten policies. This is usually a result of health or lifestyle habits. Coverage is guaranteed for life, regardless of age, health, or occupation. This can save your loved ones from having to pay for final expenses/burial services, or any other expenses after you’re gone.

If you’ve been deemed high risk or uninsurable by life insurance companies, guaranteed life insurance could be the right solution for you.

Can Your Family Afford a Fitting Farewell for You?

Final expenses, including funerals, outstanding medical bills, legal fees, etc, are expensive these days. A funeral alone will cost between $7,000 and $10,000, on average. Without a life insurance policy, your beneficiaries may struggle to come up with that much cash.

That’s why using life insurance to cover your final expenses may be an important part of your financial plan.

Applying for Guaranteed Issue Life Insurance

No medical exam is required. All you have to do is answer a few medical questions.

No hassles!

The entire process is fast, too. There are no waiting periods. In most cases, you’ll have the protection you need in a matter of days.

The only requirement is that you are between 50 and 80 years old.

Graded Benefit

Guaranteed Issue policies typically have what’s referred to as a two-year “graded” benefit. That means that during the first two years of your policy being in force, if you die of health-related issues, your beneficiary will only get back your premiums, plus a small amount of interest. If you die from an accidental cause, your beneficiary will typically get the full benefit right away.

After two years, the full death benefit would be paid to your beneficiaries, regardless of the cause of death.

Guaranteed Lifelong Protection

Your coverage will never be reduced or canceled and your premiums will never change. The coverage is guaranteed for life, regardless of future changes in age, health, or occupation, as long as premiums are paid on time.

Matured Endowment

Guaranteed Issue policies usually mature at age 100. At this time, if the insured is still alive, the policy becomes a matured endowment and will pay out the full face value, minus any loans. Under this scenario, the death benefit would be paid to the owner of the policy, and any gains would be subject to income tax. Some insurance companies allow the insured/owner to delay receipt of the matured death benefit until their death, to avoid any taxable gains.

Guaranteed Issue Insurance Quotes and Rates

Guaranteed life insurance may be a good solution for your needs if you have:

  • Poor health (which may have made it difficult to get insurance in the past)
  • Dangerous hobbies, like drag racing or sky diving
  • A high-risk job, such as underground mining or logging, or
  • A fear of needles or doctors

Now call us at 800-442-9899 and speak to a real person! (yes, we’re old school.) You have enough things to think about, so we’ve taken the stress out of shopping for life insurance.

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