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Guaranteed Life Insurance 2009
Guaranteed Life Insurance
Q. What is Guaranteed Life Insurance?
A. Guaranteed life insurance is one of the many different types available to you as you search for the right type of coverage for you.
Because there are so many different life insurance policies on the market today, you need to be sure to find the one that meets your individual needs and is affordable.
The best way to do this is by working with a good, reputable life insurance agent and company. They will be able to explain to you what options are available to you and whether or not guaranteed life insurance is a type of coverage that will work for you situation.
Q. What is guaranteed life insurance coverage?
A. It is a type of life insurance coverage that is available for consumers who cannot secure conventional life insurance due to their age or their health status.
Guaranteed life insurance is perfect for people who are in poor health, have a preexisting condition, such as diabetes, or who have been diagnosed with a terminal disease or illness.
This type of insurance helps with the financial burden that burying their loved ones and estate settling puts on the survivors. Guaranteed life insurance is there to help people in these situations and who simply have no other options left open to them when it comes to securing life insurance.
Q. What are the Downfalls to Guaranteed Life Iinsurance Policies?
A. The biggest downfall are the high monthly premiums when compared to standard life insurance plans.
These expensive monthly bills are usually what stops people from taking out a guaranteed life insurance policy as many people are already dealing with high medical bills. It is not a realistic option for many. Additionally, the coverage a guaranteed life insurance policy offers is very limited.
They are designed to pretty much cover the cost of a funeral and that is it. Because of this, guaranteed life insurance is known as the ‘insurance of last resort’.
Q. What Is Covered by a Guaranteed Life Insrance Policy?
A. Coverage on a guaranteed life insurance policy usually has a 2 year waiting period before the policy is put into effect. This is really an unusual practice considering that guaranteed life insurance is meant to cover people with terminal illnesses and other health conditions that could pass during that two year wait time.
There are some guaranteed life insurance policies that do come with coverage during the waiting period, but the premiums only climb higher when this option is added. More often than not, a guaranteed life insurance policy payout is enough to cover burial expenses and any proceeds above and beyond the minimum amount allowed that is not used is considered forfeit.
But, a guaranteed life insurance policy does provide people with peace of mind, which is why, despite the many downsides of the policy, they still invest in one.
Q. Will I Need Anything From My Doctor?
A. With a guaranteed life insurance policy, doctor’s medical documentation is not needed in order to purchase. There are no physical required, no extensive medical history background checks, and no interviews.
The insurance company that offers these usually just expects to be paid by the consumer the policy is issued to and they understand that many times a guaranteed life insurance policy is put into place as a last resort to protect the surviving family members.
Q. Do I Have Any Other Options?
A. One thing many people do not know about guaranteed life insurance is that policies are whole life policies.
There is no expiration date on the guaranteed life insurance policy as long as the premium is paid every month. Some insurance companies offer guaranteed life insurance as universal life insurance that accrues interest over the years. These universal guaranteed life insurance policies work by ensuring that the minimum payout will be made if the policy itself has not accrued enough interest to payout.
This provides consumers with a little bit of flexibility in their guaranteed life insurance coverage and it is still relatively new to the insurance markets.
Q. What is the Maximum Payout?
A. Most guaranteed life insurance policies have a maximum payout that is usually no more than $50,000. Some policies only come with a maximum payout of only $5,000. Make sure that you understand how much your guaranteed life insurance policy pays out so that you and your survivors are not left wondering why you didn’t receive more. It may not be the most attractive type of insurance policy available and you should try every avenue possible before resorting to taking out a guaranteed life insurance policy. If this is your only option, then at least it is better than having no coverage whatsoever.
