Should You Buy Guaranteed Issue Life Insurance?
Life insurance companies know that older people are still out shopping for new policies. They have responded to this booming market by making products to suit older applicants.
Older people have many different reasons for buying life policies today. Some simply want to be sure their family has enough cash to pay for a funeral. Because of the small face value, these are usually simple to qualify for. Sometimes they are called burial or final expense policies. When many people think about buying life insurance for the elderly, this is what they think of. Because the death benefit is fairly modest when compared to other types of life policies, the premiums are also kept fairly modest.
But many older people have larger needs. Some people may find that life policies are a good way to protect a family business, enjoy tax advantages, or give wealth to the next generation. These may be larger and more expensive policies, but the potential applicants are convinced they will benefit. Whatever the reason, lots of older people are shopping for life insurance!
You may remember going through a complex underwriting process when you purchased a policy. In order to get the very best rates, younger and healthier people may find that they can save a lot of money by submitting to a long health application. A medical exam may be called for. Lots of people do get to middle age and their senior years with some medical issues. Even if the person keeps these problems under control, they will probably not get the lowest premiums.
Insurers know this. So they have come up with simplified and guaranteed life insurance for seniors. These products allow an older person to qualify for coverage without having to submit to a comprehensive underwriting process. These two types of policies are similar, but have some very important differences you should understand.
A guaranteed issue policy does not have to ask any health questions at all. You have probaby seen ads for senior life policies on TV. Products like this are marketed to people who are over age fifty. The maximum age varies, but may go up to age 80 or age 85. Instead of using health questions or a medical exam, the insurance company will impose a waiting period before the full benefits will be paid. For some older people who cannot qualify for a normal policy because of health problems, this can be a good deal.
However, a lot of older people are fairly healthy. They can choose to apply for a simplified issue policy instead. They will only have to answer a few heath questions, and will not usually havve to have a medical exam. The policy will not have a waiting period. The price will usually be lower too.
Middle aged people, and even senior citizens, can still qualify for many types of life insurance policies. It is important to understand how these policies work so you can find the one that will benefit you for an affordable price.
Stop by to understand your options. Explore guaranteed vs. simplified issue life insurance policies. Get more consumer tips and free quotes for seniors no medical life insurance.