Guaranteed Life Insurance | A Senior's Best Friend
As people age, they often worry about their loved ones being left financially burdened in the event of their death. While life insurance is designed to help with this issue, many seniors are hesitant to purchase a policy because they fear being rejected due to health concerns. Guaranteed life insurance can provide peace of mind for seniors by ensuring that coverage will be provided, regardless of health status.
While life insurance is designed to help with this issue, many seniors are hesitant to purchase a policy because they fear being rejected due to health concerns or that their guaranteed life insurance policy might be unaffordable.
This type of policy does not require a medical exam and provides coverage regardless of health concerns. For seniors who want to make sure their family is taken care of after they’re gone, guaranteed life insurance is an ideal solution.
How Does Guaranteed Life Insurance Work?
Typically, guaranteed life insurance plans have a waiting period before the benefits go into effect. Most of these policies would be fully functional after 2 to 3 years.
However, if the policyholder died within the waiting period, the beneficiary would not receive the full death benefit but rather, the insurer would return all premiums paid into the policy plus interest (generally 10%).
Insurance companies require these waiting periods to dissuade end-of-life applicants from purchasing a life insurance policy knowing that death is likely to happen within the next 24 months. Without the waiting period requirement, life insurance companies would suffer a significant loss.
Additionally, eligible applicants must be between 50 and 80 years old (depending on the company) and agree to purchase a death benefit that is less than $35,000.
Since guaranteed life insurance policies are whole life insurance contracts, the policies contain the same guaranteed benefits as traditional whole life insurance policies:
- Once issued, the insurance company cannot cancel your policy for any reason other than non-payment.
- The premium payments for your whole life coverage can never be increased by the company. Even if you become terminally ill shortly after your policy is issued, the insurance company cannot increase your premiums.
- Your guaranteed issue whole life policy contains a cash value account that will grow over time earning guaranteed tax-deferred interest paid by the insurance company
- Policyholders can access the cash value in the policy at any time and for any reason via policy loans or withdrawals.
Is Guaranteed Life Insurance Affordable?
When compared to Term Life Insurance or Universal Life, guaranteed life insurance rates are considerably higher because the insurance company is accepting an unknown medical risk. Most insurance companies that offer the lowest rates can do so because the company requires a medical exam and have numerous health questions on their application.
Companies that offer guaranteed life insurance or guaranteed acceptance life insurance never require a medical exam and there are no medical questions on the application.
Here are actual rates for a $15,000 Guaranteed Issue Life Insurance policy for a Male and Female who are unable to medically qualify for traditional life insurance:
| Age of Applicant | Male | Female |
|---|---|---|
| 50 | $65.68 | $51.24 |
| 55 | 86.44 | $65.95 |
| 60 | $95.38 | $76.13 |
| 65 | $127.38 | $93.45 |
| 70 | $148.42 | $112.84 |
| 75 | $208.82 | $161.79 |
| 80 | $308.48 | $264.09 |
These are actual rates for the ages listed. To find an accurate rate for your actual age, click the insurance rate button below.
How does the Waiting Period Work?
As we mentioned earlier, guaranteed life insurance policies will have a waiting period of generally 2 years. I the policyholder dies from natural causes the beneficiary would not receive the death benefit but rather a refund of all premiums paid plus an additional 10%.
Who should consider Guranteed Life Insurance?
Although guaranteed life insurance is recommended as a last resort, there is a segment of the population, especially seniors, who will not medically qualify for traditional life insurance.
People who are terminally ill, undergoing long-term care or kidney dialysis, need an organ transplant, are on hospice, living with a chronic condition, living with AIDS or HIV and/or Alzheimer’s or dementia typically have a harder time finding traditional medically underwritten life insurance.
These folks, for whatever reason, may not have any life insurance and are generally concerned that upon their death, the cost of their funeral and burial will be passed on to their friends and loved ones.
In today’s economy, a traditional funeral and burial service will typically cost between $8,000 and $12,000. If you are concerned about leaving this debt for your loved ones or friends then you should certainly consider purchasing guaranteed life insurance today!
Frequently Asked Questions
Get Final Expense and Burial Insurance Quotes!
I believe that when people shop for insurance (or anything else, for that matter) on the Internet, they are looking for a simple, non-intrusive, non-pressure method of doing so.
I strive to treat my prospective clients with the utmost respect and I believe an educated prospect can make the right decision without sales pressure.
Being independent, I represent many highly-rated insurance companies and, because I am not beholden to any one insurance company, my focus is to find the right company and policy for each individual client.
- Guaranteed Life Insurance | A Senior’s Best Friend - November 21, 2022
- Best Long Term Disability Insurance - November 17, 2022
- Indexed Universal Life Insurance Shoppers Guide - November 13, 2022