Guaranteed Life Insurance 2012

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 types of 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 coverage agent and company. They will be able to explain to you what options are available to you keeping the case-specific details in mind.

Q. How does it work?

A. It is a type of life coverage that is available for consumers who cannot secure conventional life coverage due to their age or their health status.

The respective plan 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.

It 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 their lives.

Q. What are the downfalls to Guaranteed life insurance policies?

A. The biggest downfall is the high monthly premiums when compared to standard life insurance plans.

These expensive monthly bills are usually what stops people from buying it as most of them are already dealing with high medical bills. It is not a realistic option for many. Additionally, the coverage a policy offers is very limited.

They are designed to pretty much cover the funeral costs. It is also known as the ‘insurance of last resort’.

Q. What is covered in the plan?

A. The policy usually has a 2 year waiting period before the policy is put into effect. This is really an unusual practice considering the fact that it is meant to cover people with terminal illnesses and other health conditions that could pass during that two year wait time.

There are some 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 coverage 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 coverage policy does provide people with peace of mind, which is why, despite the many downsides of the policy, they still invest in one.

Q. Do I need anything from my doctor?

A. The medical documentation is not needed in order to purchase it. 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 it is put into place as a last resort to protect the surviving family members.

Q. Do I have 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 policy as long as the premium is paid every month. Some companies offer guaranteed life insurance as universal life insurance that accrues interest over the years. These 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. The idea is still relatively new to the market.

Q. What is the maximum payout?

A. Most coverage 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 policy pays out so that you and your survivors are not left wondering why you didn’t receive more. If this is your only option, then at least it is better than having no coverage whatsoever.