By Tom Poblano – Guaranteed Issue Life Insurance plans are life insurance plans that are Guaranteed. You cannot be turned down!
If you have current medical conditions that might otherwise make it difficult to obtain standard coverage, then Guaranteed Issue Life Insurance Companies offer policies that address this issue.
These policies are Whole Life and all of them only offer a Graded Life Insurance payout. Graded Life Insurance policies are pretty straightforward, for the first 2 years they will return the premium paid, plus interest ( Carriers vary) and on the 25th month the full face amount of the policy will be in-force. If death occurs by an accident , during the first 2 years ( As in our example below) , the policy will pay the full face amount.
Guaranteed issue life insurance plans are all No Medical Exam Life insurance plans and , again, there are no health questions asked.
Here is an example from Gerber Life Insurance
1st year : Premium back + 10% Interest
2nd year: Premium back + 10% Interest
25Th Month until death – Full face amount of the policy will be in force.
A few of my top Guaranteed Issue life Insurance Companies are
Gerber Life – Issue age is 50-80
Kemper Life – Issue age is 40-80
United Home Life – They only offer 3 year graded plans. Issue age is 45-75. They only offer up to $10K in coverage.
Vantis Life – 50-80 – They offer coverage in New York State
Terminal or very serious Health conditions
For those with terminal or very serious health issues, I have two carriers that will offer coverage. They offer what is known as Single Life Time Pay. This means you will make a single payment for the policy. Is it expensive , you bet it is, but it is a way to add more money to the burial insurance fund. These are guaranteed issue whole life insurance policies.
Here is an example of how they work:
40 year old male ( Does not matter if there is tobacco use)
$10K whole life policy needed
Single Premium Payment amount is $7,806.40
In Months 1-6, should death occur, the premium payment is returned Plus 5 percent interest. The full face amount is in force starting month 7.
This certainly can be an expensive option but for those that can see the added value it might be something to consider.
Each carrier is different and people do not fit into a “One size fits all” policy. I always try to put people into , immediate in force plans. However this option may not always be available and this is the reason for guaranteed issue whole life insurance plans.
If you are in good general health then you may want to read my Life Insurance for Seniors Article. Click HERE.
Contact me today via my contact form or give me a call. My Number is 512-963-5000