Term Life Insurance Q&A
- Why should I choose BeyondQuotes?
- Which companies do we represent?
- Is BeyondQuotes licensed where I live?
- Is my information confidential?
- Do you only offer rate quotes?
- How do we choose which companies to represent?
- How much Term Life Insurance do I need?
- What are "level" policies?
- What should be the term length?
- Is it worth insuring my spouse on my policy?
- Can you explain the difference between Term and Whole Life plans?
- I suffer form a pre-existing condition. Can I still be insured?
Applying for a Policy
- How do I apply for Term Life Insurance?
- How do I find the best value plan for my needs?
- What is the waiting period between applying and coverage?
Guaranteed Life Insurance
Guaranteed Acceptance Life Insurance
What is guaranteed life insurance? It is a question that is important for you to have answered before purchasing any kind of life insurance coverage. There are many life insurance policies on the market today and it is vital that you find the best one for you individual needs. There are many good and reputable life insurance agents available who will be able to explain your options and to help you determine whether guaranteed life insurance is right for you.
Guaranteed life insurance is a life insurance designed for those who are unable to get conventional life insurance because of either their age or their health status. For some, finding a life insurance company that will cover them is very difficult. Either they have had a poor health history which makes them unqualified for insurance or they have been diagnosed with a terminal disease. For those who need to provide their family with financial needs to either bury their loved one or pay off their estate costs.
Guaranteed life insurance provides a very important need for those who have no other options. However, there are many factors that are unattractive to many people.
Firstly, the premiums are very high compared to conventional life insurance. The cost of the insurance is sometime too expensive for those who already are in financial difficulty. For some this means giving up their quality of life or whose bills are already barely being met. Adding an additional financial burden is just not realistic.
In addition to being very expensive, the coverage offered by guaranteed life insurance is very limited. It is usually just enough to provide burial funds. Because the funds are limited and the premiums are high, guaranteed life insurance is also known as "insurance of last resort."
In many cases guaranteed life insurance carries a waiting period before the holders benefits kick in. The waiting period is usually up to 2 years. For someone who has been diagnosed with a terminal disease this option simply makes no sense. There are guaranteed life insurance policies that offer coverage without a waiting period; however, the premiums are even higher. With some policies, the benefit payout will only be enough to cover burial expenses and nothing else. If the buyer is covered for more than the minimum amount they forfeit any remaining proceeds.
There are however, some positive benefits to guaranteed life insurance. For those who can afford it, it does offer some protection for their loved ones. In a time of failing health, not having to worry about how they will be able to have a funeral, it provides some peace of mind.
Another benefit of guaranteed life insurance is that for most policies there is not any medical documentation needed. The purchaser does not have to go through the hassle of having a physical and extensive history checks. For many purchasers, the insurance company offering the guaranteed life insurance only expects to be paid.
Guaranteed life insurance is a type of whole life insurance, where the policy has no expiration date if the premiums have been paid every month.
There are some insurance companies who offer a form of universal life insurance policy that does accrue interest. The way it works is that if the policy has not earned enough interest to cover the pay off than the minimum pay off will be guaranteed. These are fairly new options and they do provide an additional amount of flexibility that conventional guaranteed life insurance does not offer.
There is always a maximum payout with these policies, usually no more than $50,000, and in some cases no more than $5000. While this coverage is better than no coverage at all, it is better than no coverage at all.
While guaranteed life insurance does not sound all that attractive, it is sometimes the only option available. Before purchasing guaranteed life insurance you buyer should first check every available resource to find out if they are truly uninsurable.
Some less than reputable insurance companies or agents will push this policy on some buyers, in order to collect a commission. That is why it is a good idea to search for a life insurance company that is willing to offer a more conventional life insurance policy.