Guaranteed Acceptance Life Insurance – Your Right to Health Cover

The government of United States gives every citizen the right to enjoy the benefits of life insurance. This right and the ensuing benefits remain inaccessible for a lot of people. Smokers, people who suffer preexisting conditions and many others find it very difficult to obtain life cover. This is where guaranteed acceptance life insurance comes into play. As the name indicates, this policy guarantees to accept you as a beneficiary.

Who is the policy meant for?

The policy is targeted at people who are considered to be “high risk” customers by insurance companies. This means that they are in poor health. The chance of early mortality is high and their health care demands are higher or might be high in the near future.  People between the ages of 50 and 85 are accepted under this insurance policy in most of the states of USA. Certain states such as Minnesota and Wisconsin do not offer this policy.

Attractive highlights of guaranteed acceptance life insurance

No person is ever turned away by a guaranteed policy provider. Here are its highlights.

  • Life insurance irrespective of preexisting conditions
  • Choice of benefit periods
  • It does not require medical checkups, tests or your medical history
  • No need for underwriting
  • No questions are asked other than basic information such as name and contact details
  • Great for high risk patients
  • Investment in this insurance begins to accumulate cash value after a fixed period
  • Premiums are usually fixed and do not increase with age
  • Good death benefits
  • It is renewable
  • You are free to cancel the policy anytime

A good thing about this policy is that guaranteed acceptance life insurance insurance companies cannot cancel it as long as the beneficiary continues to pay premiums regularly. The insurer cannot quote age or an inherent disease as a reason for cancellation.

People with preexisting conditions have to pay exorbitant costs for life insurance. The majority of companies turn down these applicants. Companies that do accept them put applicants through a battery of tests and examinations. As a result, the policy cover begins later. In the meanwhile, if the applicant dies before the coverage begins, his or her family receives no benefits. To avoid this, guaranteed acceptance insurance coverage is extremely effective.

Why doesn’t everyone choose a guaranteed policy?

Despite all the benefits,this coverage plan is expensive. No questions are asked and because high risk customers are always a part of this insurance cover, out of pocket expenses such as premiums, deductibles and co payments tend to be high. Due to the high costs, people from low and medium income group families find it very tough to purchase these policies.

Cash value is lower than whole life cover but is much better than the cash value offered by term coverage. Although the beneficiary can cancel the policy anytime, he or she stands to forego cash benefits when cancelling.

Despite the limitations, a lot of people still opt for this policy because they fail to receive coverage under any other plan due to their health conditions. Before you purchase a policy, you should consider the different providers. Some insurers offer a money back guarantee if you are not satisfied. The age group that is eligible for this policy differs from one company to another. Also, different insurers offer different coverage plans and benefits under their guaranteed acceptance life insurance policies.