Life insurance is a shield for individual’s families that can keep them protected against any financial difficulties if the person dies. Therefore, a lot of people go shopping for life insurance policies. However, when they do so, they will find that they have to answer medical questions and undergo medical examinations before they can opt for a life insurance policy. This is something that not everyone is comfortable with as it could be regarded as an invasion of privacy. In this case, individuals will find that guaranteed-issue life insurance is a suitable option for them because it can provide them with the required coverage without needing any sort of medical underwriting.
However, before people do opt for this insurance policy, it is best for them to know facts relating to it. First and foremost, they should understand that guaranteed-issue life insurance is a policy that has been designed to provide people with coverage, regardless of their age and medical history. These policies were introduced solely for retired individuals who couldn’t qualify for any other type of insurance policy. Individuals have to fill a form and then pay the required premiums and they will then be able to receive the insurance they need. When the individual dies, the funds from the policy will be issued to beneficiary who has been listed in the procedure.
The problem that individuals may encounter is that they are notorious for having very little face values. It is very attractive for people to get an insurance policy without undergoing a medical exam, but the policy they may be offered is no greater than $30,000 to $40,000. Such policies were typically introduced for paying off the burial expenses and some other related bills when the policy holder dies. However, since then, insurance companies have widened their scope and are now offering policies with greater face values to individuals for helping the beneficiaries in dealing with financial challenges in the future.
There is room for fraud in these guaranteed life insurance policies such as individuals with a terminal illness may choose to purchase one of these policies to give their families a bigger payout at their death. In order to deal with this issue, insurance companies have come up with a proper graded benefits structure, which indicates that beneficiaries will not be able to get the benefits within two to three years of taking out the policy. Typically, premiums are refunded at the time of payout.
There are some considerations that should be made when choosing this policy. A no medical exam life insurance policy is usually for individuals who are healthy but just want to avoid a medical exam for several reasons. Nonetheless, a traditional life insurance policy can be forgone in the case where individuals need the policy urgently. Before you make a final decision, it’s best to get term life insurance quotes online, so you get the best policy.