Understanding Guaranteed Issue Life Policies For Older People

If you are an older person who is considering the purchase of more life insurance, you may have considered a guaranteed issue policy. Insurers are eager to get more business from seniors, and they have developed these policies with that market in mind. Consider a few things about them, though, before you decide if they are right for you!

You may want to consider guarnateed life insurance for senior citizens. These have been developed to be simple and fast for most older people to apply for. The biggest attraction with this type of policy is the fact that the application does not ask any health questions. If an older person would rather not answer questions about their health, or if they just want to protect their privacy, these policies can still be applied for.

By now, you are probably wondering how this can be true. After all, insurance companies are not eager to issue policies to people who are unhealthy and could pass away soon. It might seem like they would pay out more than they take in this way. But you know that life insurance companies do not like to lose money.

They work because the policy usually has a waiting period. The "catch" is that the individual must live longer than this waiting period in order for his or her family to collect the entire face value. If the insured person passes away before that date, the policy may pay out a precentage of the death benefit, or they may just refund the death benefit.

For example, one policy may pay the full amount of the policy face value if the insured person survives for 24 months. Between 12 and 24 months, it may pay out half of the death benefit. If less than a year has passed, the policy may just return the premiums paid. Sometimes, they even refund them with interest. This is just an example, and you would have to look at the exact details of any policy you are considering.

Does this make guaranteed issue life a good idea for you. It is very tempting to get no medical exam life insurance, but you probably want to buy a policy that is liable for the whole face value the minute it gets issued. A lot of seniors are still pretty healthy. If so, they can still pass the health application for an immediate death benefit policy with simplified, but not guaranteed, underwriting. In addition, these policies are usually a bit cheaper.

What does this mean? What does this mean? Well, you should probably try to qualify for a life policy that pays out an immediate death benefit before you turn to a guaranteed issue policy. Then, if you cannot qualify for one, you may consider guaranteed life as another alternative. Your own situation will determine your best decision.


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Visit us to research the pros and cons of no medical exam life insurance for people of different ages. See if guaranteed senior life insurance policies are the right choice for you.