Don’t get ripped off by buying a guaranteed issue final expense insurance policy. These life insurance policies have their place, but too many people who could qualify life insurance policies that are both cheaper and better overpay for guaranteed issue or simplified issue final expense insurance policies.
Guaranteed issue or simplified issue life insurance policies are the best option for only a small percentage of the population. If you have a significant health condition, you might not qualify for any other type of plan. Your health history might keep you from qualifying for a standard life insurance policy.
However, this is not the case for most people. This is not even true for most of us who are over 50. Even if you have some health issues, you are likely to be approved for a standard contract.
If you take medication for hypertension or high cholesterol, you may think that you won’t be approved for a standard life insurance policy. For most people this is not the case.
You might have a higher premium than a person who is not in need of medical treatment or medications, but you will probably not pay nearly as much as you would if you applied for a guaranteed issue or simplified issue whole life insurance policy.
Guaranteed issue or simplified issue life insurance policies can cost you 2 times as much when compared to other plans. This isn’t the only issue. You will probably get a slower cash value build up. Your loved one will not receive the money you expect if you pass away in the first two or three years after buying the policy.
The future loan value of a life insurance contract is not the first thing most people look at when comparing contracts. Typically, people will compare the premiums and the death benefit. Many contracts also build future loan value and this is an important part of many final expense insurance plans.
Even if you don’t plan to use the equity in your policy it can be used to keep your policy in force during hard times. Many plans will allow you to spend a portion of your future loan value to keep the contract going when you are can’t pay from your checking account.
Your loved one may not get what you expect them to get if you purchase a guaranteed issue whole life insurance policy. Many of these policies are modified benefit plans. This typically means that if you die within two or three years after your plan’s effective date only a fraction of the death benefit is payable. Your family could only receive a small fraction of the death benefit.
The only reason to apply for a guaranteed issue or simplified issue contract is if you are convinced that you will not be approved for an underwritten life insurance policy. Before buying a plan of this type, be sure to apply to other contracts to see what you are able to be approved for.
Don’t be one of the many people who will pay way too much for their life insurance contract. Enduring an exam or answering a few medical history questions can help you to pay much less. Even if you are rejected, you can apply for a guaranteed issue plan later so you have nothing to lose by trying to get a less expensive contract first.
You can find information on both no exam life insurance https://lovetherates.com/life/index.htm and standard life insurance on the author’s website. Alston J. Balkcom also offers private health insurance https://lovetherates.com/Health/index.htm quotes on his site.
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