Guaranteed Issue Life Insurance
Some points to know:
- Policies are typically purchased to pay for final expenses (funeral and burial costs)
- Policies offer a reduced death benefit when compared to fully underwritten life insurance policies
- Most people who apply for guaranteed issue life insurance are generally not in good health and may have been denied coverage at one time
- Policies are generally considered a “last resort” life insurance option
- Because there is no medical underwrite, premium quotes are more expensive when compared to fully underwritten insurance
- Polices typically have a graded death benefit, meaning that the policy would need to be in force for 2 or 3 years before the full death benefit pays out
- Should a policy holder die during the grading period, the insurance company will refund all premium with interest (typically 10%) to the polices beneficiaries
—Albert Womble, Life Insurance Specialist, Wealth Watch Partners
December 2020
