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Life Insurance: How To Buy Despite A Health History

Guaranteed Issue Life Insurance

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Guaranteed Issue life insurance is insurance which is issued with no medical questions and no medical exam.

You may be able to find guaranteed life insurance by:

  • Calling a life insurance brokers. See: Choosing A Broker.
  • Searching the internet by typing words like "Guaranteed issue life insurance" into your favorite search engine - or several search engines.
  • Keeping your eyes open (and asking friends and family members to do the same) for any radio, TV, or print ads for guaranteed issue insurance. You've probably seen them before. They say things like: "You cannot be turned down for any reason!" For example, the following companies have been known to advertise guaranteed issue life insurance::
    • Colonial Penn Life Insurance: offsite link
    • Physicians Life Insurance Company advertised guaranteed issue life insurance up to $10,000 per policy for people age 45 and over. Tel.: 800.957.2112.
    • New York Life Insurance Company advertised a guranteed issue life insurance policy for people who are members of AARP (anyone can join AARP for a low annual fee).  To learn more, see: offsite link or call 800.478.1303.

Guaranteed Issue policies are generally for small amounts. They may be more costly than a traditional insurance product. Still, a Guaranteed Issue policy may be worth while. For instance, such a policy can cover final expenses. If you purchase several of these policies, the death benefit can add up.

Be aware that most guaranteed issue policies which are available are "graded." This means that the amount of the death benefit increases the longer you live. In general, this means that the actual death benefit doesn't match the stated death benefit until the end of the second or third year after the policy is issued. At the worst, if you die before the death benefit starts, your estate will at least receive a return of all the premiums you paid plus interest. The amount of interest is usually greater than what you would earn on regular savings accounts.

Guaranteed issue policies are worth purchasing if:

  • You can't get any other life insurance.
  • You need life insurance to pay for funeral expenses
  • You want to be able to sell the policy.  (A sale of a life insurance policy is known as a "Viatical Settlement" or "Senior Settlement").
  • The premiums won't be a burden.

Otherwise, you might be better off with other types of investments.

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