Finance
Guaranteed Issue Life Insurance
Helping the "uninsurable" secure coverage is challenging. Clients who have health problems or have been denied coverage in the past still need life insurance. One option is guaranteed issue life insurance. Given the high risk nature of coverage, few insurers offer it. However with a little preparation and extra effort, you can find the right policy.
Life Insurance Medical Questions
High risk clients need to answer questions about their medical history so that you get the information you need to find the right coverage. Candidates for guaranteed life policies often:
- have permanent health problems
- need coverage to leave a legacy or to provide for final expenses so that their loved ones are left with no debt.
Guaranteed Issue Life
Guaranteed issue policies do not require a physical and preexisting medical conditions usually are not a factor in the application process. Often such applications require only general information, such as name, address, ID number, gender and beneficiary.
The death benefit generally pays the beneficiary full face value if death occurs after the waiting period. Policies typically specify a period of one to 3 years during which time the policyholder will not be covered for the full amount. If death occurs during this time frame, the beneficiary would likely only receive a return of all premiums paid with interest. However, if the insured has a fatal accident, most companies will pay the beneficiary the full amount.
There are pluses and minuses that come with guaranteed issue policies. Some advantages include:
1. no medical evaluations
2. a level death benefit that is guaranteed as long as premiums are paid
3. premiums will not increase
4. the policy proceeds are usually free of estate tax
5. policies usually avoid probate if a beneficiary is named
On the other hand, you and your clients may have concerns about the following:
- guaranteed issue policies can be costly
- waiting periods can be lengthy - up to 3 years
- if the client is willing to provide some medical information, he/she may be able to purchase a different type of coverage that might be cheaper.
If the disadvantages outweigh the advantages for a particular client, an easy issue policy is a better choice. Such policies offer the full face value starting from the date of issue. These policies may work best for those who are under the age 40, need full benefits immediately have been without disease for the last five to ten years, or have a minor illness.
The "uninsurable" face many difficult planning decisions, but everyone needs the protection coverage that life insurance offers. With guaranteed issue policies, approval may just be simple steps away.
Ivon T. Hughes president of The Hughes Trustco Group has been in business for 30 years. Canadians and Americans - Get a FREE Quote TODAY! Tel: (514) 842-9001 Email: info@trustco.ca Web: http://www.hughestrustco.com |
Ivon T. Hughes
Tags: guaranteed issue life insuranceSimilar articles
Get Financial Help Through Bad Credit Unsecured Loans
Bad credit unsecured loans could help you in fulfilling your financial requirement even if you are facing bad credit problems. Have you any of the problems like County Court Judgments (CCJ? Read more →Global Banking
Everyone needs a bank account. Company or person you can't avoid it. The days of dealing in cash from out of your mattress are long gone. The banks have us by the . Read more →Haggling: Give Yourself A Raise
Haggling was a way of life for Mr. B. I knew Mr. B because his son was one of my friends. His haggling greatly embarrassed my friend, but it didn't bother Mr. Read more →Hiring a Financial Advisor
When hiring a financial advisor you don?t want to simply hire someone who looks like they know what they are doing, but rather a financial advisor that knows what they are doing and has proof. Read more →Aphorism
Things should be as simple as possible, but no simpler.
Albert Einstein