Guaranteed Issue Term Life InsuranceJohn Sanders
Have your clients ever been turned down for term life insurance coverage? Guaranteed issue term life insurance was created for those who have trouble obtaining basic term life insurance coverage. Guaranteed issue term life insurance is also known as a “simplified issue policy.” You are automatically accepted for coverage without being required to submit to a medical exam. In exchange for guaranteed coverage, you will be charged a higher term life insurance premium. The higher premiums are a fair trade for insurance carriers taking a larger risk covering people without knowing their full medical histories. Purchasing a guaranteed issue term life insurance policy is ideal for people who were born with or have developed chronic medical problems.
The Inner Workings of Guaranteed Coverage
Guaranteed term life insurance coverage works a little differently than buying a straight term life insurance policy. While basic policies allow you to choose the period for which you would like to be covered, guaranteed policies are issued at five- and 20-year periods.
If you initially buy the five-year term, you may renew every five years after that until the age of 80. At age 80 your policy automatically becomes exchangeable for a permanent life insurance policy. You are still automatically covered upon transfer to your new policy and still are not be required to undergo a medical exam. Your premiums are also guaranteed to remain level throughout the duration of your policy unless term life insurance rates increase across the board for everyone in your age range and state. Renewable term life insurance premiums are based on your current age. Get instant term life insurance rates by visiting http://www.equote.com/li/termlifeinsurance-quote.html.
If you choose to purchase the 20-year term, your monthly rates will stay the same for the full term of your policy regardless of any rate increases. Upon completion of the first 20 years you have the option of purchasing an additional 20-year guaranteed issue term life policy. Again, no medical exam is required, nor will you be subjected to any health questionnaires. Some insurance carriers offer the option to convert a 20-year term policy into permanent life insurance coverage after the first 20-year period is over.
Note: the face values you may purchase for a guaranteed term life insurance policy are limited. The coverage amounts start at $5,000.00 and are sold in increments of additional $5,000.00 up to a maximum of $25,000.00. The face values do not decrease with age or with a decline in health status.
Other Benefits to Owning a Guaranteed Issue Term Life Insurance:
- It cannot be canceled in case you develop a terminal illness.
- You can activate an accelerated death benefit in case of terminal illness; giving you needed cash to offset medical bills or special needs assistance.
- Your coverage is guaranteed to stay active for the whole term of your coverage. If you purchased the 20-year term, coverage would end if your benefits were accelerated.
- You have the standard 30-day money back guarantee on the policy. If you decide that the guaranteed issue term life insurance policy is not for you, you may request a refund of premiums paid to date — no questions asked.
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