Rejected? Try Guaranteed Acceptance Life Insurance

If you are a citizen of United States, you have the right to secure your family’s future by purchasing a life insurance policy. However, if you suffer pre existing health conditions, buying this insurance cover becomes very difficult. The complexity of obtaining the cover increases with the severity of your illness. In such cases, if not for a policy called guaranteed acceptance life insurance, you might have to go without a life cover. With a guaranteed policy, you don’t have to fear being turned down.

Is the policy right for you?

Life insurance policy is essentially a death benefit. In case of your premature demise, the policy kicks in and offers the coverage money to your family. Unfortunately, most of the insurance companies turn down your offer if you suffer pre existing conditions because the risk associated is high. If you cannot find  conventional life cover, guaranteed acceptance life insurance is perfect for you. In the United States, every state except a few such as Wisconsin and Minnesota offer guaranteed coverage. Insurers target people between 50 and 85 years of age for this policy.

Advantages of guaranteed acceptance life insurance

No medical tests and no rejections: As the name suggests, guaranteed coverage accepts everybody. Applicants are not filtered out due to reasons such as preexisting conditions. Medical examinations are a rather cumbersome process and lead to delays in coverage. With a guaranteed policy, such unwanted hassles do not occur.

Cash value: Guaranteed insurance has one major advantage over term life insurance. It gives you good cash value. This means that the money that you put into this insurance policy begins to grow after a certain period. At the end of the term, you receive higher returns when compared to term life covers.

Great flexibility: These policies are flexible. Firstly, you can choose the term through which coverage you want . Secondly, these policies are renewable so you can extend it when the policy ends. Thirdly, there is usually no obligation that requires you hang on to the policy until end of the term. You can cancel the policy midway.

Consistent expenses and a reliable safety net: Premiums are a major issue with all kinds of insurance policies. For a guaranteed acceptance policy, the premiums remain constant for the entire term. The insurer cannot increase premiums, deductibles and copayments or cancel the policy depending on your age or preexisting conditions. The policy is a completely secure safety net.

Convenient and no delays: Since a medical test is not required, the policy benefits begin sooner. Additionally, you also do not have to fill out pages and pages of applicant forms and put in loads of paperwork. You only have to furnish basic information about yourself. The entire process is quick and easy.

Disadvantages of a guaranteed policy

A policy that has so many benefits should have a long waiting list of applicants. However, this is not so. Not everybody needs or chooses to have a guaranteed acceptance life insurance policy. Here are the reasons.

Costs: We have not spoken about the costs of the policy. That is because unfortunately, costs are the disadvantage. People who choose this policy are usually those who are turned down by other cheaper policies because of the high risk associated with them. Since the insurer is ready to cover these people, the company naturally hikes the costs in order to cover its losses in case the beneficiary dies before the policy term.

Cash value: Cash value is an advantage as well as a disadvantage. While the value you receive is better than that of term insurance, it is lower than that of whole life insurance. Although the policy gives you the flexibility to close the policy any time, you could lose cash benefits.

The cost and value should still be acceptable factors because the intention here is to receive a robust life cover, especially because you face a high risk of early mortality owing to different factors.