Whole life assurance (also known as guaranteed issue life insurance) is the one policy that offers a wide array of coverage benefits at an affordable cost. A guaranteed issue life insurance policy means that you are guaranteed issue (or pay the premium in full) even if you die before the end of your policy. While this insurance policy may seem more expensive than other life insurances, the fact is that it is a far better choice for people who want assurance that they will be paid the death benefit if they die prematurely. As such, guaranteed issue life insurance should be considered as an option only if you have a sound financial plan to ensure that the premiums and the death benefits will not be exhausted during your lifetime.
Unlike most other life insurances, there are no age limits or investment requirements for guaranteed issue life insurance. Thus, guaranteed issue ensures coverage even for very old individuals who may otherwise find it difficult or even impossible to acquire other types of life insurances at their current age and situation. Guaranteed issue also provides very good coverage at a relatively low cost. In most cases, the face amount is very small compared to other types of policies. This small face amount makes guaranteed issue life insurance policies cost-efficient.
Guaranteed issue also has a simplified process that makes it easier for people to purchase this type of policy without much difficulty. One big advantage of guaranteed issue life insurance policies is that there are no complex procedures and time-consuming applications to go through. Also, guaranteed issue life insurance policies do not have a waiting period or a higher premium. For these reasons, guaranteed issue life insurance can be a great option for people who are not eligible for any other kinds of life insurances.
Guaranteed issue policies can also be purchased by those people who do not meet any of the health questions required for medical underwriting. Because most insurance companies require potential policyholders to undergo health questions in order to determine the risk of insuring them, many people find guaranteed issue policies convenient. Also, the simplified processes provided by most guaranteed issue policies make it easy for people to answer basic health questions without too much trouble. Although the simplified procedures provided by most guaranteed issue policies may be disadvantageous for some people, these policies nonetheless provide good coverage at reasonable premiums.
Most guaranteed issue life insurance policies also allow policyholders to purchase an accidental death benefit. These accidental death benefit payments are intended to replace the policyholder’s regular death benefits in the event of the policyholder’s untimely death. Accidental death benefits are only available if the policyholder has not passed the health questions required for medical underwriting. However, most accidental death benefit policies include an automatic stay clause that keeps the death benefit from being forfeited in the event of accidental death.
Guaranteed issue policies also differ from life policies in the manner in which the proceeds are allocated between the beneficiaries. Unlike life policies, which follow the order of the line of credit and then interest income, guaranteed issue life insurance policies follow a delayed dividend distribution. This delayed distribution is designed to provide more time for policyholders to distribute the proceeds to their named beneficiaries. Policy proceeds are usually paid out when policyholders die, but some policies allow for future distribution of premiums or death benefits.
Another difference between guaranteed issue life insurance policies is that there is no maturity date. As a result, the premiums are paid into an account and not immediately consumed. Most life insurance premiums remain in effect for a minimum of twenty years, although most policies pay into an account as long as they are in force. As policyholders pay premiums into the accounts, they can choose to receive a percentage of the total face value of the policy, forty-five percent of the face value over a designated period of time, or none at all. In addition, like other types of insurance coverage, a portion of the premiums will be paid to the beneficiary, usually depending on the age of the person insured. There is also a possibility that the premium could be invested in a mutual fund and earn a high return.
In order to determine whether a guaranteed issue life insurance policy will be a good match for you and your family, you should fill out a guaranteed issue life insurance quote form. This quick and easy online form will provide you with a handful of different insurance company options to consider and will help you narrow down the choices to two or three policies that best meet your particular needs. Some guaranteed issue life insurance companies will require you to fill out a medical questionnaire, so it is important that you meet the medical age range specified by the company. The form will also ask you to provide information about the number of children you have, the ages of those children, and any other information that will help the insurance company make a determination as to which policies will be most beneficial to you.