No Medical Life Insurance Read this Before Buying
Article by Alston Balkcom
Don’t get ripped off by buying a guaranteed issue or simplified issue life insurance policy. These life insurance policies have their place, but too many people who could qualify life insurance policies that are both cheaper and better overpay for guaranteed issue final expense insurance plans.
Guaranteed issue final expense insurance policies are a good deal for only a small percentage of the population. If you have a significant medical condition, you may not be approved for any other kind of policy. Your health history might keep you from qualifying for a standard life insurance plan.
However, this is not the case for most of us. This is not even the case for most older Americans. Even if you have some medical history issues, you are likely to qualify for a standard plan.
If you take prescriptions for hypertension or hormone replacement, you may feel that you won’t be approved for a standard life insurance contract. For most this is not the case.
You could have a higher premium than someone who is free of any medical issues, but you will probably not pay nearly as much as you would if you applied for a guaranteed issue final expense insurance plan.
Guaranteed issue final expense insurance contracts can cost you twice as much when compared to other policies. This isn’t the only problem. You will probably get a slower future loan value build up. Your loved one will not receive the face amount in full if you pass away in the first two or three years after buying the policy.
The future loan value of a life insurance contract is not the first thing most people look at when comparing contracts. Typically, people will compare the monthly costs and the face amount. Many contracts also build future loan value and this is an important part of many life insurance policies.
Even if you don’t plan to spend the equity in your policy it can be used to keep your policy in force during hard times. Many contracts will allow you to spend a portion of your cash value to keep the plan going when you are unable to make payments from your checking account.
Your family may not get what you expect them to get if you purchase a guaranteed issue or simplified issue final expense insurance policy. Many of these plans are modified benefit plans. This typically means that if you die within two or three years after your plan’s effective date only a fraction of the face amount is payable. Your loved one might only receive the premiums paid plus a little interest.
The only reason to buy a guaranteed issue contract is if you are certain that you will not qualify for an underwritten life insurance plan. Before considering a plan of this type, be sure to apply to other policies to see what you are able to be approved for.
Don’t be one of the many people who will pay way too much for their final expense insurance plan. Taking a medical exam or answering a few health history questions can help you to get a lower rate. Even if you are turned down, you can complete an application a guaranteed issue plan later so you have nothing to lose by trying to get a less costly contract first.
About the Author
You can find instant Connecticut life insurance rates as well as instant health insurance rates for Connecticut on the author, Alston J. Balkcom’s website.