Insurance Declined

Is Guaranteed Issue Life Insurance A Good Solution?

If you have been declined for life insurance, it may be very tempting to respond to an offer for a No Questions Life Insurance Policy. These are called, in the business, guaranteed issue policies. They are marketed a lot, especially to the senior (over 50) market. I see ads all the time on night time TV or the internet for no medical exam senior life insurance policies.

Features of Guaranteed Issue (no questions) Life Insurance

• No physical or medical exam is required.
• There are no health questions, or you can refuse to answer the health questions. You may still have to qualify by age, location, etc.
• There is probably an ah-ha you were not expecting. The maximum benefits of term or whole life policies with a guaranteed issue feature are usually pretty modest. Term policies may max out at about $100k and whole like may max out at a quarter of that. The other important thing to notice is a waiting period before benefits will be paid out.
• Premiums will probaby be a bit higher than they would be for a regular no medical exam life insurance policy, or especially for a policy which was issued with full health underwriting. If you can qualify for one of these other options the lower premius and immediate death benefits probably make them better deals!
• People with managed health issues probably can qualify for a simplified issue policy, and probably just buy guaranteed issue policies because the do not know they have other options.

Are Guaranteed Issue Policies Bad or Good?

There is not one right answer for everybody. I would urge people to consider other options if they can. For some people, they are a good alternative. Even though the full death benefit will not be paid unless the insured individual survives the waiting period, they may refund premiums or pay part of the benefit otherwise. So the risk is probably low that the family will be out anything. They just may not have that much to gain.

Here are some related articles with more information.

Burial Insurance For Seniors

Guaranteed Issue Life Insurance  

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No Medical Exam Insurance

For those of you who would rather just go through a quick insurance application process, without answering a lot of personal questions and health questions, No Medical Exam Term Life Insurance is the website for you to look at some great offers. They are always posting new, simple issue insurance products, and here are a few of the offers we’ve seen so far:

Mortgage Unemployment Insurance — Again, No Mortgage Required.

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