The Pros and Cons of Guaranteed Acceptance Life Insurance

Guaranteed acceptance life insurance is a major benefit for people who find it tough to purchase a conventional policy. Every person in the United States has the right to purchase  life cover. Many find it very difficult because of preexisting health conditions or some kinds of lifestyle habits. A guaranteed policy covers these people and gives them good benefits securing their families in case tragedy occurs.

Guaranteed acceptance life insurance is available for everybody. It is especially targeted at people who face a higher risk of early mortality who are turned down by insurers. Apart from Wisconsin and Minnesota, all states in America offer a guaranteed acceptance policy. It is specifically targeted at people between 50 and 85 years of age. Anybody can opt for this policy and they are bound to be accepted because of the nature of this insurance scheme.

The major benefit of a guaranteed acceptance life insurance is that nobody is turned down. So it is the best policy for people with preexisting conditions. Secondly, applicants can choose the term of the policy. There is usually no minimum or maximum limit for the term. Thirdly, since the policy is guaranteed, applicants do not have to undergo medical examinations.

Cover with No Medical Checks

Medical history is not checked either. This is a huge benefit because medical tests are not only cumbersome, but they also delay activation of benefit period. Underwriting is not required. Additionally, the applicant does not have to fill pages after pages of insurance forms. Only basic information is requested by the insurance company for its records.

Guaranteed acceptance life insurance policies are good investments for several reasons. Unlike conventional whole life insurance policies, premiums of this policy do not increase with age. The money that is spent on aguaranteed acceptance life insurance policy begins to accumulate value after a brief duration. Benefits received at the end of term are higher than term life insurance policies. Thirdly, the policy offers good death benefits.

Guaranteed insurance schemes offer flexibility. For one, the policy is renewable unconditionally. Secondly, if the beneficiary is not satisfied with the policy or is unable to pay premiums, he or she can cancel it at any time. There are no obligations attached to cancellation of the policy.

Insurers cannot cancel the policy or increase premiums under any circumstances. If an insurer cancels the policy quoting a newly developed or existing illness, the beneficiary can sue the company. Age also cannot be quoted as a factor for policy cancellation before the end of the term. Beneficiaries can be sure of a safety cover all through the plan duration.

Since guaranteed policies begin your benefits sooner, you are not left without life cover for long. If you are involved in a tragedy during the policy lapse period, your family does not receive any benefits. With a guaranteed policy, the coverage lapse is not very long and the safety net is stronger.

The disadvantages of guaranteed acceptance life insurance policies are its costs. Since the policy accepts everybody, including those who suffer high risk of early mortality, premiums tend to be much higher than those of other conventional policies. Due to high costs, a lot of people cannot afford it and are forced to go without life insurance because they are not accepted by conventional . The very purpose of offering guaranteed acceptance policy is defeated.

The second disadvantage is in terms of cash value. If the beneficiary cancels the policy before term he or she loses the cash value. Also, the value obtained for investment is lower than that of whole life insurance.

With an understanding of the pros and cons, evaluating the policy and deciding on its purchase becomes much easier.