Can I get Life Insurance Guaranteed Issue if I have Medical Issues?

Think you can’t get coverage if you have medical issues? Life insurance guaranteed issue may be your way to go.

You may be surprised to hear, but the answer to that is YES, you can! Many people believe that based on the severity of their medical issues, they have little to no chance of qualifying life insurance. It’s an understandable and generally accurate belief, right? 

I mean- what carrier would want to take a chance on with a promise to pay a death benefit if their client has Cancer, HIV, a serious heart condition, or whatever else the ailment might be? However, that is NOT the case with life insurance Guaranteed Issue, also called guaranteed acceptance life insurance. 

What is Guaranteed Issue life insurance?

It’s a simple and straightforward life insurance that does NOT require you to answer medical questions or take a medical exam in order to qualify. The underwriting requirements are lower, meaning it’s very easy to qualify… it’s a guaranteed shoe-in. 

So why wouldn’t everyone get Guaranteed Issue insurance?   

Because these policies are generally issued with a lower face amount, usually $5,000- $20,000. They’re commonly used as burial insurance (also known as final expense insurance). These policies are most suitable for those living on fixed income or a limited budget.

Guaranteed Issue is for those that have common ailments affiliated with aging, but need coverage to protect their family from financial hardship. In essence, you can be retired, living on fixed income, have cancer, HIV or heart disease and still be qualified to receive a guaranteed issue life insurance policy. 

Although, if you’re on the healthier side, you have access to other products with higher values, like increased face amounts, more aggressive cash value growth, and lower premiums. However, qualifying for those products may have more stringent underwriting requirements. For everyone else- there’s Guaranteed Issue.

Are there Cons to Guaranteed Issue?

The downside to Guaranteed Issue policies is that they pay a graded benefit. That means that the benefit paid out is lower than it will be in later policy years of your policy. If the insured dies in an accident immediately, the full face amount of the policy is generally paid. Full benefit pay out from natural passing may incur a waiting period of various lengths. If the policy was issued for someone in critical health, or even worse, having a terminal illness, the insurance carrier is not required to pay the full death benefit.

If the insured passes during the earliest policy years, the carriers will repay the premiums plus interest. This ensures the insured’s beneficiary to receive an amount higher than the premiums paid in. If the insured lives past the initial period (generally 2 years), the policy’s full face amount will be paid out. Therefore, the carrier’s risk is minimized, AND, the insured is eligible for an insurance policy without the risk of monetary loss.

Guaranteed issue life insurance is great for some, but not all. If you don’t fall into this age and health ailment category, there are other policies that better suit for you. Life Insurance companies like Pivotal Life Insurance work with a range of carriers with a suite of products, including Guarantee Issue.

Call 561-412-5500 to speak to an agent now to help you assess which policy is best for you. 

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About Pivotal Life Insurance

Pivotal Life Insurance is a family owned, independent insurance agency that focuses on income protection and family security through Life Insurance products (Term Life, Whole Life, Final Expense), Mortgage Protection and Annuities. With a range of product offerings, we accommodate the varying needs of our clients through resources provided by the nation’s top rated carriers. Although we are headquartered in South Florida with a branch in Maryland, we service most of the United States as our agents are licensed throughout the country. Pivotal Life Insurance is one of the fastest-growing agencies and we pride ourselves in putting you, our customers, first.

Insurance Is Pivotal. Cherish what’s important.

For more information or if you’d like to join the Pivotal family, visit www.insuranceispivotal.com or call at 561-412-5500.