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To get life insurance coverage, insurers require an application process. This process typically evaluates your personal history, including your lifestyle choices and medical history. 

But, if your health or lifestyle choices makes you ineligible for traditional life insurance, you’re not out of options. Guaranteed life insurance is, well, pretty much guaranteed. For applicants who aren’t eligible for coverage because of their personal profile, guaranteed issue life insurance provides almost-certain acceptance. 

Premiums are costlier and coverage amounts are lower for guaranteed life insurance than traditional life insurance, typically ranging from $5,000 to $25,000. However, if you can’t get a traditional policy, a guaranteed issue policy can at least provide some financial support to your family when you die.

How guaranteed issue life insurance works

Guaranteed issue life insurance is a type of final expense insurance. Because it’s for people who have serious health risks or cannot otherwise get a life insurance policy, it’s very expensive. 

Getting a guaranteed issue life insurance policy is fairly easy — all you have to do is answer sign up. You will not be denied due to a serious health condition or risky lifestyle choice. This is why premiums are much higher than traditional life insurance and even other types of final expense insurance.

Here’s what you can expect if you’re buying a guaranteed issue life insurance policy: 

No medical exam: You won’t need to take a medical exam to get a policy, unlike many other traditional life insurance policies.

Guaranteed acceptance: Regardless of health conditions or lifestyle choices, as long as the applicant falls within the specified age range, they cannot be denied coverage.

Limited coverage: Guaranteed issue policies often have low coverage limits, typically maxing out $25,000. While this may be lower compared to other life insurance options, it can still cover final medical expenses and end-of-life expenses. 

Graded death benefit: Some guaranteed issue policies have a graded death benefit, which means that the policy needs to be active for two years before it pays out. 

Who should get guaranteed issue life insurance?

Because of its high costs and low coverage amounts, guaranteed issue life insurance is generally best suited for people who aren’t eligible for traditional life insurance, which offers more coverage and lower premiums. 

Simplified issue life insurance, another type of burial insurance, is also generally a better option than guaranteed issue life insurance. But, some people may not be eligible. You may need to opt for guaranteed issue life insurance if you fall in one of the following categories: 

You have a serious medical condition: If you have chronic health issues, a history of serious illnesses, or a terminal illness, guaranteed issue life insurance can offer coverage when other options are not available.

Your age prohibits you from getting other types of coverage: Seniors who may find it challenging to qualify for traditional life insurance due to age-related health concerns can get a guaranteed issue policy.

You were rejected for traditional coverage: If you have previously been denied life insurance due to health reasons or other factors, guaranteed issue policies provide an avenue for obtaining essential coverage.

Is guaranteed issue life insurance worth it?

For people who are in good enough to get traditional life insurance, guaranteed issue life insurance isn’t worth it because it doesn’t provide much coverage and is very expensive. But for people who can’t get a traditional policy, guaranteed issue life insurance is a great alternative that can provide some financial security. 

Guaranteed issue life insurance provides pivotal coverage to people who can’t otherwise get life insurance coverage because of their health or age. While the coverage amounts may be limited, policy beneficiaries can still use the funds to pay for the policyholder’s end-of-life medical care and funeral expenses.

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