If you’re looking for permanent coverage, but you don’t want to endure a lengthy application process, there’s always guaranteed issue life insurance: coverage that anyone can get, without any restrictions on health or visits with a doctor. In fact, in most cases, all you need for approval is your age.
With guaranteed acceptance, you don’t have to be in perfect health to get coverage. But is it a good deal? Here are some details, and a few reasons why this may—or may not—be the right choice for you.
Coverage Is Guaranteed — You Cannot Be Turned Down Because of Your Health
The most attractive feature is the promise of coverage, no matter what. Regardless of your current health condition, you cannot be turned down. Unlike traditional life insurance in Colorado, you don’t need to schedule a physical exam or visit the doctor to apply. When you’re ready to sign up, the application process is simple and straightforward.
Guaranteed issue is usually limited to people between the ages of 50 and 85, with monthly premiums based on age. However, once enrolled, premium rates do not increase, and benefits do no decrease for the life of your policy.
What are the Disadvantages?
With no medical exam and no doctors, is about as simple as it gets. However, premiums tend to be much higher than traditional coverage, and you may end up paying more than you want to. On the other hand, if you have significant health issues and cannot get a standard term life policy, guaranteed issue gives you another option.
Most policies in Colorado protect themselves from high risk by having what is called a limited benefit period. This means that if you die from natural causes within the first 2 years of buying a policy, you don’t receive the full benefit, only a refund for premiums paid. However, there are usually exclusions for accidental death in the first 2 years, meaning your policy pays in full.
Guaranteed issue policies are generally issued for very small amounts—$5,000-25,000 worth of coverage is standard. For people looking for more robust benefits, traditional life insurance may be a better choice.
Offers Peace of Mind
Guaranteed life insurance is permanent coverage that can be used to pay for final expenses, medical bills, or just to create a nest egg for your family. While it can be an expensive option, if poor health has made it difficult to secure a traditional policy, guaranteed issue may be a smart choice.
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