NO EXAMS –  NO PHONE INTERVIEWS- NO MEDICAL RECORDS to qualify for Guaranteed Acceptance Life Insurance

What is a Guaranteed Acceptance Life Insurance Policy?

It really doesn’t matter what the insurance company calls it, Guaranteed Issue, No Health Questions Asked, or Guaranteed Acceptance Final Expense insurance.  It all means the same thing.  Most of the time when you see these terms used, it’s referring to a policy that is designed for people over the age of 50, but available for younger ages too. If you apply, you qualify.

The reason there are so few choices available for people under the age of 50, is because the insurance companies anticipate these people to have serious health problems. Typically a person will apply or at least try to find out if they qualify for other coverage.

If you are under the age of 50, just ask us to do a quick evaluation and we’ll get you the pricing.  You may think or have been told by other agents that you won’t qualify, but we specialize in difficult cases and may be able to find a policy with a better price and benefits than a guaranteed acceptance life insurance policy. This type of policy should be a LAST RESORT option for everyone.

Guaranteed Acceptance Life (GI) insurance alleviates the need for an applicant to answer any health questions.  All you have to do is provide some personal information like your name, address, date of birth, social security number and name a beneficiary.  Simple!  But keep in mind that you’ll pay the price for buying something so simple.  Not only will the rates per thousand be higher than other types of life insurance, but your beneficiary will only get a limited death benefit if you died during the first few years.

These policies are usually $1,000 to $25,000 and  should be a whole life product, but sometimes companies offer term insurance as an alternative which we don’t recommend purchasing.  It’s priced higher than other types of Final Expense Insurance because the insurance company can’t choose who they want to insure.  Final Expense Life insurance helps pay the costs of a funeral including the casket, cremation, a memorial service, the opening and closing, limousines, or any other expense incurred at the end of life.  Basically any expense that someone else will have to pay after we die.  This can also help with the cost of keeping up a home before it’s sold, making the remaining car payments and paying credit card debt while other buy it to leave a gift for their children or grandchildren.

Companies that sell Guaranteed Acceptance Life

The companies that you see frequently on TV like Colonial Penn are usually advertising their Guaranteed Acceptance Life Insurance.  You may have received solicitations through the mail from other companies including Globe Life, AAA, Mutual of Omaha or Met Life.

Independent agents can offer you Guaranteed Acceptance Life Insurance with other companies like Gerber Life, Columbian Life, Kemper, United Home Life, Americo and AIG.  Most people who are over the age of 50 are huge targets for these companies, and if you think you won’t have to deal with an agent, think again! For example, if you call the phone number on your TV for Lincoln Heritage, you’ll probably be pushed into seeing an agent who wants to come to your home, and sometimes, they don’t even call you first,  they just show up!

Globe Life, Mutual of Omaha, New York Life and Met Life are the most common companies that send out gobs of mail, over and over.   If you respond to an advertisement and fill out an application that you get in the mail, you won’t deal with  insurance agent and you might not understand what you’re getting into.

It’s important to compare rates for all the Guaranteed Acceptance companies, and even more important to know that you are buying the best final expense insurance you can.  When you deal direct with those companies, they are basically taking a sales order. They all offer different types of final expense or burial insurance, but you’ll never know unless YOU ask. Unfortunately they are aren’t going to say “Let me see if this really is the only thing you can get.”

One of the problems with going straight to the company and not using an independent agent is that you will never know if you could have purchased the insurance for less than what they quote you.  Even worse, you won’t know if the benefit could have been better.

How to determine the “BEST” Guaranteed Life Insurance policy for you

Let’s go over what makes one of these policies the” Best Guaranteed Life Insurance”.  Since all of these companies accept anyone who wants to simply purchase the policy, there are very few features to make one stand out over the other besides the price.

5 things to consider when comparing different Guaranteed Acceptance Life Insurance policies.

1. Age –  You need to first make sure you are within the age limits for the policy when you initially purchase the plan.  Make sure to check out how much death benefit you are eligible to purchase at your current age.  Most companies will allow certain amounts for different age groups.
2. Graded or Modified period – These plans will grant you the life insurance, but none of them will pay out the full death benefit until you have live through the first two to three years.  If you have found two companies that you are old enough to purchase the coverage, next consider how long the graded period is.  All Guaranteed plans have this “waiting” period so don’t get hung up on not liking it.  If you contacted us, we’ll be sure you can’t get a plan that does not have a waiting period.  Remember, you should only take this type of coverage if can’t get anything else because something is always better than nothing.  If you do die during this 2 or 3 year period, your beneficiary will at least get back every penny you paid plus 6% to 10% interest.
3. Price – Now that you found the companies that will allow you to purchase the coverage, and you know the graded period of time, we’ll get the rates for all them.  If one of the companies has a 3 year graded period and costs $50 per month, but another only has a 2 year period and costs $60 per month, you need to decide what is more important to you…saving $10 per month, or knowing that if you died during the 3rd year, your beneficiary will get the entire death benefit, not just a return of premiums paid and a little interest.
4. Interest Rate – Some companies will credit the death benefit by 10% for most Guranteed Issue Life Insurance, but not all.  If rate are practically the same and the waiting periods are the same, now take into consideration the interest rate.
5. Maximum Amount of Death Benefit– Each company has different limits as to how much they will insure you for and some times it’s based on the age of the person purchasing the policy.  You can see the ages that are available and amounts of coverage they will offer for each age group.  If you can’t purchase as much as you would like to have, purchase all you can from your first choice, then move to your second choice and fill in.

Companies with the “Best” benefits and  low premiums

Gerber Life Insurance

• Ages 50 – 80
• Minimum $5,000 (all ages)
• Maximum $25,000 (all ages)
• Graded death benefit for 2 years
• Accidental Death pays full death benefit day one
• 10% interest and return of premium

AIG

• Ages 50 – 85
• Minimum $5,000 (all ages)
• Maximum $25,000 (all ages)
• Graded death benefit for 2 years due to natural causes
• Accidental Death pays full death benefit day one
• Terminal Illness Rider provides up to 50% pays 50 percent of the applicable death benefit in the year accelerated included in the policy.
• Chronic Illness Rider provides benefits for  Pays a one-time lump sum payment of up to 50 percent of the policy’s face amount with no waiting period included in the policy
  
• 10% interest and return of premium during the first two years

United Home Life

• Ages 45 – 75
• Minimum $5,000 (all ages)
• Maximum $10,000 (all ages)
• Graded death benefit for 3 years due to natural causes
• Accidental Death pays full death benefit day one
• Return of premiums plus interest during the first 3 years

Columbian Life

• Ages 25 – 80
• Minimum $5,000 (all )
• Maximum $10,000 (Ages 25-44)
• Maximum $25,000 (Ages 45-80)
• Graded death benefit for 3 years due to natural causes
• Accidental Death pays full death benefit day one
• Return of premiums plus 6% interest during the first 3 years
• Applications cannot be accepted from an applicant living in a nursing home, who has a terminal illness or who is an intravenous  drug user.

Keep in mind these policies that ask no health questions will cost more than if we can get you approved with a company that would accept you without a full two or three year waiting period.  We are always going to ask if you would like to find the lowest rate for the most beneficial death benefits, but if you don’t want to answer any health questions, just let our agent know and we’ll put you into a policy and you’ll be covered in just a few days.

Types of Death Benefits for Graded or Modified Policies

Immediate Level Death Benefit – This means that there is no waiting period on the policy.  If you die two weeks after your policy is active, then your beneficiaries will get 100% of the death benefit.  This is the best type of Final Expense death benefit.

Percentage pay out –  This type of death benefit is referred to a Graded or Modified.  This is the next best type of death benefit.   If you are not healthy enough to be accepted for an immediate death benefit, then this is the next level you should try to get. For example, if you purchase a $10,000 death benefit and pass away during the first year, it would pay out anywhere from 25% to 40%, of the $10,000.  If you die in the second year, it would pay 50% to 75% depending on the company. Not all final expense or burial plans offer this type of death benefit, but several do including Royal Neighbors, Baltimore Life, Aetna, Motorists and a few more.

Return of Premiums Plus Interest – This is the last and final type of death benefit that should be purchased and is also referred to as Graded or Modified.  If the person dies in the first two to three years, the beneficiary will get the premiums that were paid in, plus a small amount of interest, usually 10%.  If you purchase a Guaranteed Acceptance Life insurance policy, this is what your beneficiary will receive.

This category can be broken down even further into the number of years the policy will be Graded or Modified, either for two or three years.  If you are over the age of 45, you should not buy a policy with three year waiting period.  There are many companies that will only limit the policy for two years and the prices are comparable.  Unfortunately if you are under the age of 45, a three year waiting period is likely your only option.  Again, something is better than nothing.

Whole Life VS Term

Once you know that Guaranteed Issue is the only type of Final Expense Life insurance, there is one more thing you need to know other than the rate and the number of years the company uses for a waiting period…Is the policy you’re considering whole life or term insurance?

It’s our recommendation not to buy Term insurance to pay for your final expenses, and only purchase some type of permanent insurance, either Whole Life or No Lapse Universal Life.  Term insurance is meant to end! There are several companies that offer small amounts of term insurance that consumers buy as a burial policy.  Most of the time consumers really don’t understand it, or  don’t read the fine print that explains the coverage ends at a certain age.

Guaranteed Life Insurance usually start out low compared to whole life policies, and then increase in five year age bands. It’s not so bad in the beginning, but the truth is that these policies are huge money makers for the insurance companies. Either the policy holder can’t or won’t pay the premiums that have increased over the years, or they live past the term of the policy.  We help consumers all the time who had a term policy that ended when they turned 75, but could easily have purchased a policy that would have never ended.

It’s not a good idea to buy a term policy predicting you would never live that long.  No one can really predict how long they will live, and it’s much harder to qualify for life insurance when your age 75 and a lot more expensive.  If your shopping around for a burial policy, take a few minutes to find out what you can qualify and get the BEST QUOTE!

Why do people buy Guaranteed Life insurance?

The majority of consumer buy this type of policy because they don’t think they can get anything better, and would never pass the health questions.  I’ts hassle free and the lazy way out if you haven’t tried anything else.  Others were either turned down in the past, or the talked with an agent that just didn’t carry different kinds simplified issue life insurance for people with serious health conditions like Alzheimer’s or dementia and have given up hope.

No matter the reason, it’s never too late to inquire what your options could be.  It could make a world of difference for those you leave behind so don’t wait.  Contact us for the to get the best rates and benefits. Too many consumers purchase Guaranteed Issue Life Insurance when they really don’t have to.  Most people buy this type of Final Expense Life Insurance or Burial Insurance to pay their final expenses.

It’s the easiest type of life insurance to be approved for because there are no health questions to answer. This type of insurance should be used as a last resort, and our independent agents will help you figure out if this truly is your only option.  If it has been determined that you will not be accepted for a full or partial benefit during the first two to three years, then you have no other option but to purchase a Guaranteed Acceptance Life Insurance, and something is always better than nothing.

Why talk to an INDEPENDENT agent before you purchase a Guaranteed Life Insurance Policy?

The reason is two fold.  If you buy Mail order or  TV order life insurance, you won’t give you advise on which types of insurance are more suitable for you.  They are order takers that work for one single company and can’t tell you about other options, so you won’t know what the other companies have to offer. Second, you may be short changing your beneficiary if you died in the first two to three years.  Too many consumers purchase Guaranteed Issue Life Insurance to pay for their funerals and other end of life expenses that really shouldn’t or don’t need to.   In other words, if you can’t get approved for anything else, then of course it much better than nothing at all.

Independent agents have access to many different companies.  Each company has their own guidelines on who will be accepted and who won’t.  When you call or mail an application back that you got as an advertisement, you’ll never know if you could have done better.  Our independent agent will ask questions about your health, narrow down the companies that would accept you, and then from there give you quotes for the companies that will offer you best level of coverage, for the best price.

Almost all Guaranteed Issue life insurance policies will limit the amount of death benefit if you die with in the “Graded , Limited or Modified” period.  So what does that mean?   I told you there was a price to pay by purchasing a Guaranteed Acceptance policy right off the bat…this is it.  During the initial period of two, sometimes three years, your beneficiary will only get the premiums you have paid in, plus a little interest.  Why purchase an inferior policy if you could have done better?

Some companies that are offered by independent agents may have issued you a policy with a 100% full death benefit from the first day your policy started.  If you couldn’t qualify for the immediate (also called “Level”) death benefit, then its very possible you could have qualified for one that would at least give your beneficiary 25% to 75% of the death benefit during those first couple of years.  What a pity if your family only got back a few bucks instead of thousands to pay for a funeral, and all it would have taken is a little time on the phone talking to an agent who gave you some options.

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