Key takeaways<\/b><\/p>\n Guaranteed issue insurance is a type of life insurance policy that is typically geared toward people with health conditions that prevent them from obtaining other forms of life insurance.<\/span><\/p>\n Also known as guaranteed acceptance life insurance, guaranteed issue is typically a type of permanent life insurance. With permanent insurance, your coverage lasts for your entire lifetime as long as you keep up with your premiums. If you\u2019re older or have health issues, <\/span>guaranteed issue whole life insurance<\/span> can provide a guaranteed way for your family to pay funeral expenses, medical bills, or other expenses after your death.\u00a0<\/span><\/p>\n When shopping for life insurance, keep in mind that this form of life insurance typically has a graded period of two to three years. If you buy a policy and then die while in that graded period, the policy may not pay out the full death benefit to your beneficiary. Rather, they may see a return on the premiums you’ve paid with some interest. Once the period is over, your loved ones are eligible for the full payout.\u00a0<\/span><\/p>\n For people who are concerned about leaving behind medical expenses and other bills, guaranteed issue can help. While coverage amounts are lower and premiums are higher than other types of insurance, the no-questions-asked coverage that guaranteed issue provides can be a financial lifeline for your family. Here\u2019s a closer look at how guaranteed issue policies work and how to determine if it\u2019s right for you.\u00a0<\/span><\/p>\n Many types of life insurance require a medical exam. Medical exams help your insurance company to assess your life expectancy to determine your eligibility and rates for certain types of coverage.\u00a0<\/span><\/p>\n That\u2019s where guaranteed issue life insurance is different. Since it\u2019s intended for older people with potential health concerns, you can\u2019t be turned down because of your medical history. There\u2019s no medical exam to worry about or health requirements to answer. Depending on your insurance company, you may need to meet other requirements to qualify for a guaranteed issue plan, such as age limits.\u00a0<\/span><\/p>\n Since insurance companies don\u2019t consider your health when issuing your guaranteed issue policy, they price that into the plan. Rates are higher than other types of insurance for comparable coverage amounts, and the amount of coverage you can buy generally tops out around $25,000. With Fidelity Life\u2019s <\/span>RAPID<\/i><\/b>ecision\u00ae Guaranteed Issue Life<\/b> plan, you can buy up to $25,000 in coverage if you\u2019re between 50 and 85 years old.\u00a0<\/span><\/p>\n While coverage amounts are smaller than traditional term and permanent policies, that money can make a big difference for families to help pay funeral costs, nursing home bills, and more. <\/span>Guaranteed issue whole life insurance<\/span> is the ideal choice for many people who don\u2019t qualify for a larger policy but want to leave behind money to a loved one.<\/span><\/p>\n There are a range of affordable Fidelity Life products to choose from based on your situation and financial responsibilities.<\/span><\/p>\n GET STARTED<\/span><\/p>\n \u00a0<\/span>How does guaranteed issue insurance work?<\/b><\/p>\n When you apply for guaranteed issue life insurance, your insurance company will ask a few basic questions to approve you for the policy and set your rates. Most people who apply for a guaranteed issue policy typically cannot be turned down unless they fall below or above an age range requirement. Since there\u2019s no medical exam, health questions, or review of your medical records, the application process is generally quick and simple.\u00a0<\/span><\/p>\n You\u2019ll also choose a coverage amount when you buy your policy. This death benefit is a \u201cgraded benefit,\u201d which means it won\u2019t kick in until after the grading period for your policy. During that graded period, your insurance company will simply refund your premiums with interest to your family if you die.\u00a0<\/span><\/p>\n Once the graded period is over, your beneficiaries will qualify for the full payout amount. Your beneficiary is the person who receives your death benefit and can be a spouse, child, or anyone else you choose.\u00a0<\/span><\/p>\n When to buy a guaranteed issue policy<\/b><\/p>\n Some people may be disqualified from purchasing other forms of life insurance because of their age or medical conditions. If you\u2019re in this situation, it can become much tougher to find financial peace of mind for yourself and your family.\u00a0<\/span><\/p>\n While you don\u2019t need to be in perfect health to qualify for other types of policies, like term life or simplified issue life insurance, serious health issues often make you a better candidate for guaranteed issue. These conditions may include:<\/span><\/p>\n If you\u2019re finding it difficult to obtain life insurance after a term life policy has matured, or simply because of health concerns or advanced age, a guaranteed issue policy can help you defray your final expenses, protect your family from increasing funeral and burial costs, or leave a small inheritance to a beneficiary of your choice.<\/span><\/p>\n It can also be beneficial to invest in a guaranteed issue life insurance policy when you take on sizable debt or want to leave behind funds for a specific charity. While the death benefit is not as high with this type of life insurance as with others, it can still help you accomplish financial goals after your death.<\/span><\/p>\n How can you use the guaranteed issue insurance benefit?\u00a0<\/b><\/p>\n Guaranteed issue insurance is designed to help cover funeral and burial expenses without cutting into any other assets in your estate. The payout comes with no strings attached, so your beneficiary gets to decide how to use the funds. While they can use the money for anything, people often elect to use these funds for the following:\u00a0<\/span><\/p>\n Funeral expenses<\/b>: The death benefit can help your survivors cover the cost of funeral arrangements. According to the <\/span>National Funeral Directors Association<\/span><\/a>, a funeral runs more than $9,000 today on average.\u00a0 This can include expenses like purchasing a plot, cremation, final preparations, caskets, and other needs \u2013 all of which add up for your family.\u00a0\u00a0<\/span><\/p>\n Medical bills<\/b>: Many people see a spike in medical bills just before death. This could include costs associated with hospital stays, medical procedures, prescription medications, and specialist care. This may also include costs associated with nursing home or skilled nursing facility care toward the end of life.<\/span><\/p>\n Debts<\/b>: From credit card debts to personal loans, many people die with debt. By using a whole life insurance policy like this to pay off that debt, your family doesn\u2019t have to worry about paying those costs. That may help to protect the value of the estate you leave behind as well.<\/span><\/p>\n Daily expenses for family<\/b>: The challenging days and weeks after a death can make working difficult. Some people may also be reliant on income from a loved one that\u2019s passed on, including Social Security benefits, pensions, or disability payments. The death benefit can help meet financial needs for a short time.\u00a0<\/span><\/p>\n Other needs: <\/b>While many guaranteed issue policies are intended to cover the costs of final expenses, the cash payout can be used for any purpose. If burial and funeral expenses are already taken care of through funding from another source, the beneficiary may choose to use the death benefit for any purpose, including:\u00a0<\/span><\/p>\n There are no real limits on how a beneficiary may use these funds in most cases. That means they can be helpful to cover specific needs unique to your family. Sometimes, the beneficiary may put those funds into a savings account as an emergency fund, too.\u00a0<\/span><\/p>\n One other benefit? The death benefit typically is available quickly, helping to support short-term expenses for your family while they wait to settle your estate.\u00a0<\/span><\/p>\n Conventional vs. guaranteed issue life insurance<\/b>\u00a0<\/span><\/p>\n Be sure a <\/span>guaranteed life insurance<\/a> policy<\/span> is the right option in your situation. With a wide range of policy options available, it may be a good idea to compare a few to determine which one is going to meet your needs.<\/span><\/p>\n Here\u2019s how guaranteed issue life insurance compares with some of the more conventional policies available.\u00a0<\/span><\/p>\n Guaranteed issue whole life vs. term life insurance<\/b><\/p>\n Term life insurance<\/span><\/a> is one of the most popular forms of life insurance available. Flexible and affordable, this policy remains in place for a specific number of years (usually between 10 and 30). Once your term ends, you may be able to renew your policy or just let it expire if you don\u2019t need coverage anymore.\u00a0<\/span><\/p>\n Term policies are often a good choice for adults looking to meet big financial needs during critical years, like when they\u2019re working or raising a family. Coverage amounts can range up to <\/span>$1 million or higher<\/span><\/a>, depending on the insurance company.\u00a0<\/span><\/p>\n Age is another big factor in choosing the right fit. Term life policies are typically available through your 70s. That means older adults may need to explore other options, including a guaranteed issue life insurance policy.<\/span><\/p>\n Term policies also typically require a medical exam and health history. At Fidelity Life, you have the option to delay a medical exam for up to six months after buying a policy. The insurance company sets the rate, or premium, on the policy based on your health. If you have a history of medical concerns, that could increase costs or, in some cases, lead to your term life application being turned down.<\/span><\/p>\n <\/p>\n Guaranteed issue life insurance vs. permanent life insurance<\/b><\/p>\n Guaranteed issue whole life insurance is a type of <\/span>permanent life insurance<\/span><\/a>, which includes any policy that lasts your entire lifetime. When you\u2019re shopping for coverage, though, keep in mind that guaranteed issue has a few key differences from other permanent plans.\u00a0<\/span><\/p>\n Unlike guaranteed issue, permanent life generally requires applicants to be in good health. Many plans require a medical exam (although you can <\/span>skip this step in most cases<\/span><\/a> with Fidelity Life). If you\u2019re older or have health complications, you may have limited choices for permanent coverage.\u00a0<\/span><\/p>\n Similar to term life insurance, permanent life also offers larger death benefits. At Fidelity Life, you can buy up to $150,000 in coverage through our <\/span>RAPID<\/i><\/b>ecision\u00ae Senior Whole Life plans<\/span><\/a>. That larger death benefit can help you leave behind more money to meet your financial goals, such as paying for a grandchild\u2019s college education or making sure your spouse has enough to live on after you\u2019re gone. If you\u2019re in less-than-perfect health and just need enough coverage to pay for a funeral or other final costs, guaranteed life is often a good alternative to permanent coverage.<\/span><\/p>\n Finally, some permanent life plans have age limits or offer fewer choices for older adults. With Fidelity Life, though, you can buy <\/span>RAPID<\/i><\/b>ecision\u00ae Senior Whole Life<\/span><\/a> coverage until you\u2019re 85. This type of life insurance can help you fund bigger financial needs well into your older years.\u00a0\u00a0\u00a0<\/span><\/p>\n Permanent life insurance is often best for those who:<\/span><\/p>\n Guaranteed issue may be best if you:<\/span><\/p>\n Guaranteed issue life insurance vs. simplified issue life insurance<\/b><\/p>\n Simplified issue and guaranteed issue life insurance share one big similarity: They don\u2019t require a medical exam. You\u2019ll still need to complete a full health questionnaire to qualify for simplified issue, including major illnesses or surgeries, family medical history, and any prescribed medications. However, there\u2019s no actual medical exam involved. That typically means you can get approved faster than other types of policies, so it\u2019s a good fit for people looking to get covered right away.\u00a0<\/span><\/p>\n Overall, simplified issue has fewer health requirements than permanent or term life insurance, but more than guaranteed issue. If you don\u2019t want to take a medical exam and don\u2019t have major concerns in your medical history, this policy could be a good choice.<\/span><\/p>\n Simplified issue is also available in higher coverage amounts than guaranteed issue, although death benefits tend to be smaller than other types of term or permanent coverage. At Fidelity Life, our <\/span>RAPID<\/i><\/b>ecision\u00ae Final Expense<\/b><\/a> simplified issue plans offer up to $40,000 in coverage to pay for funeral expenses, medical bills, or other final needs for your family.\u00a0<\/span><\/p>\n Since it has fewer health requirements, simplified issue insurance is a little more expensive than medically underwritten plans, but more competitive price-wise than guaranteed issue. <\/span>Some simplified issue policies<\/span><\/a> are written as term policies, which means they remain in place for a set number of years. Others are written as permanent life coverage, remaining in place for the rest of your life as long as premiums are paid. This also affects how much you\u2019ll pay for coverage.\u00a0<\/span><\/p>\n A simplified life insurance policy may be best for those who:<\/span><\/p>\n A guaranteed issue policy is typically a better fit for people who:<\/span><\/p>\n Whole vs. term guaranteed issue life insurance policies<\/b>\u00a0<\/span><\/p>\n What is guaranteed issue life insurance<\/span> able to do for your beneficiaries over the long term? One key factor to consider is how long this type of policy can remain in place.\u00a0<\/span><\/p>\n Generally, life insurance falls into two categories:<\/span><\/p>\n The majority of guaranteed issue life insurance plans are permanent policies, which means they\u2019ll last for the rest of your life as long as you keep up with your payments. When you die, your family has a guaranteed payout to count on for whatever they need: paying funeral expenses, medical bills or nursing home expenses, covering mortgage or rent payments, or setting aside for the future.\u00a0<\/span><\/p>\n If you know you want to leave behind a source of cash to ease financial burdens after you\u2019re gone, guaranteed issue whole life insurance offers exactly that \u2013 a guaranteed way to do it. While the costs are higher and coverage amounts lower than other types of coverage, guaranteed issue can offer a path to financial protection when you don\u2019t have a lot of other options. Being able to buy life insurance<\/a> can bring you and your family much-needed peace of mind, especially if you\u2019re aging or dealing with health issues.\u00a0<\/span><\/p>\n\n
What is guaranteed issue life insurance?\u00a0<\/b><\/h2>\n
Does guaranteed issue require a medical exam?\u00a0<\/b><\/h2>\n
Guaranteed Issue Whole Life Insurance<\/b><\/h2>\n
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