With a guaranteed life insurance or acceptance policy, the company issuing the coverage does not seek inputs about your health. Even if you have a chronic disease or illness, you stand eligible for such a policy without undergoing a medical examination.
Since you do not have to provide the service provider with your medical history, the guaranteed acceptance life insurance no waiting period policy does not apply. Opting for a whole life plan saves you the hassle of it expiring on completion of a term.
Mandatory Waiting Period
Should you pass away during the initial two years of taking the policy from natural causes, your beneficiary is not eligible for a full death benefit. If you die because of an accident, your policy’s face value is paid out even when the waiting period applies.
There are restrictions imposed by the insurance provider for the stipulated waiting period when it comes to the claim amount. Your next of kin is only entitled to a refund of the premium payments made by you to sustain your policy along with a nominal interest.
Upon completing the waiting period, your corresponding beneficiary can claim the full death benefit. Owing to the risk associated with this plan, insurance providers limit the coverage amounts on offer to smaller sums.
Standard Rules
Irrespective of the insurance coverage you take under this scheme, the listed rules apply:
- No fluctuation in monthly payments
- Death benefits do not decrease
- The policy does not expire at any age
- You can borrow from the accrued policy cash value
The requirements you need to check when purchasing what you hope will be a guaranteed acceptance life insurance no waiting period coverage include:
- The company you approach is offering this policy in your state
- You meet the 50 to 80 years age criteria
- Having a sound mind to enter into an agreement with legal implications
Consequence of Buying a Guaranteed Life Insurance Plan
Insurance companies need to survive in a competitive industry; hence, they may charge less to gain a competitive edge. However, when the risk involved is high, like in the case of guaranteed life insurance coverage, providers charge steeper premiums to absorb the risk element.
Premiums levied on such policies are higher than standard term life plans, considering the majority of those covered fall in the high-risk category. Though the premium rates vary across insurance providers, be prepared to shell out more for guaranteed life insurance policies.
Guaranteed Acceptance Life Insurance Benefits
The apparent advantages of such a plan that stand out are:
- It is open to all irrespective of existing medical conditions
- You are eligible for coverage within hours of applying
- Free quotations are available that allow you to compare rates and find a suitable insurance provider quickly
Do You Need Such a Policy?
When the following circumstances apply to you, purchasing a guaranteed life insurance plan makes sense:
- If you do not stand a chance at qualifying for a standard life insurance plan
- You need some form of insurance coverage to cover your high-risk ailments
- Not having to answer health-related questions and a guarantee of standing eligible are the decisive factors for you
Death Benefit
Since the insurance provider is taking a risk by covering you, the death benefit your next of kin can claim is substantially lower than standard policies. A higher benefit translates into paying premiums that work out more expensive.
Only if you die of an accident during the stipulated waiting period, can your beneficiary claim the entire death benefit amount. The graded benefits apply when you die of natural causes, so your beneficiary loses out on the whole sum assured.
Important Considerations
You need to consider a couple of aspects when deciding on the coverage amount as you do not want to pay higher premiums unnecessarily. Guaranteed life insurance provides adequate protection in the following scenarios:
- You have no significant debts
- Your family is not dependent on your monthly salary
- No major family expenses in the pipeline that can prove to be a financial strain on your next of kin
A thorough assessment of your individual situation’s relevant factors is what independent insurance agents help you accomplish. They draw your attention to integral aspects you may have overlooked and advise you accordingly on a plan that will benefit you in the long run.
A guaranteed plan is often viewed as a last resort, so avoid jumping in without seeking professional intervention. Lean on an experienced, customer-centric, and independent insurance agency that believes in transparency, wider choices, and affordable pricing.
