What Is Guaranteed Acceptance Life Insurance?

You might be thinking about getting life insurance on yourself. After all, it is a benefit that will offer your loved one's financial assistance if you pass away. However, you might worry that a pre-existing illness or other extenuating circumstance might disqualify you from getting coverage. Still, there might be many life insurance policies available for you, one of which is a guaranteed acceptance life insurance policy. How does this coverage work?

What is guaranteed issue life insurance?

A guaranteed issue life insurance policy is a plan that eliminates many of the qualifications that other policies require applicants to meet before they can enroll in coverage. Therefore, you will be able to get life insurance even though you might be a high risk to insure. These plans are sometimes called guaranteed acceptance plans, too.

The unique thing about guaranteed issue life insurance is that it eliminates most medical requirements for applicants. When you apply for a personal life insurance policy, your insurer will likely require you to undergo a medical exam. This is so they can get a better idea of how your physical health might affect your mortality. After all, if you have high health risks, you are more likely to die. Therefore, your life insurance risks will increase. Sometimes, they might be so great that a traditional insurer might deny your application.

A guaranteed issue plan eliminates that risk. When filling out your enrollment paperwork, you will not have to undergo a medical exam. Usually, this plan will guarantee you automatic acceptance up to a certain death benefit amount. For example, this might be $75,000. However, if you want to apply for more coverage, you might have to proceed with a medical exam, and this extra benefit is not a guarantee.

For people with chronic health conditions, a history of severe illness or other life insurance risks, a guaranteed issue policy might prove the ideal solution. Because you don’t have to undergo a medical exam, you don’t have to feel like your health issues are a stumbling block to getting the life insurance you deserve.

Often, a guaranteed issue plan will only consider factors like your age, health, gender and occupation when determining your premiums. You can often obtain them within just a few hours, in some cases.

However, there are risk associated with guaranteed issue coverage, too. These plans might be more expensive than traditional life insurance plans, particularly if the applicant has no significant health risks. They might also provide more limited benefits. If you are otherwise healthy, and can undergo a medical exam, then a standard life insurance policy might not be the best choice for you. You therefore should work with your agent to determine which policy is in your best interest.