Seniors Guaranteed Issue Insurance is guaranteed issue life insurance marketed directly to seniors for the purpose of covering final expenses.
The advantage of seniors guaranteed issue insurance is that there are no restrictions or limits on who can qualify for a policy – anyone can qualify. This type of policy is often a good fit for those with medical issues and conditions that would otherwise disqualify them from traditional life insurance, or would at least allow them to qualify under a rating. A rating can see them pay up to five times more the regular premium, which everyone wants to avoid.
Plus, if you are disqualified form a traditional life insurance policy, it can be harder to qualify for another traditional policy or a simplified issue policy. A simplified issue policy has no medical test, but they all have health questions and one many of those plan include a health question asking if you’ve been disqualified from a life insurance in the last two years.
With guaranteed issue, there are no medical tests and no health questions and everyone who applies is guaranteed to qualify. However, it should be the life insurance of last resort since the coverage amounts available are relatively small compared to what is available among traditional life insurance policies, or even simplified issue policies. Also, because of the risk the insurance company is taking on by insuring anyone who purchases their guaranteed issue policy, the premiums are more expensive than those for traditional life insurance policies.
So there is a price to pay for buying a guaranteed issue policy, but regardless, it’s better to have some coverage than no coverage at all. In fact, most quality insurance brokers would suggest going for a simplified issue or guaranteed issue policy and then trying for a traditional life insurance policy. This way, if you are denied from a traditional life insurance policy, at least you have a back-up simplified issue or guaranteed issue policy and you still will have coverage from that no matter what happens.
On the other hand, if you do get accepted for traditional life insurance, you can use the simplified issue or guaranteed issue policy as a supplementary policy that tops up the coverage of the traditional life insurance policy. Guaranteed issue policies don’t offer the flexibility that traditional life insurance can, you get them as they come with no alterations or modifications.
Traditional policies can come with riders, such as critical illness riders, which give you a lump sum if your diagnosed with a critical illness or some riders include a life insurance policy for children. With guaranteed issue policies, you are more limited and restricted. However, those with health issues don’t have as many options as those who are in good health, so it’s better to have some coverage than no coverage at all.
However, if you think you can qualify a traditional life insurance policy, do so because the ease with which you can qualify for a guaranteed issue policy hides not a lot of coverage for a high price and such a thing doesn’t always fit into every financial situation or budget.