Guaranteed Acceptance Life Insurance: What is it, and do you need it?

 From time to time uncertainty rests in people's minds. Whether health-related or financial concerns, planning for the future always rewards those who do it as soon as possible. Understanding the various forms of life insurance available can give you a chance to prepare for the future.

 For those who older people, or those with serious health risks, no medical exam life insurance can provide quick security during hard times. 

Here are some of the benefits and drawbacks of guaranteed acceptance life insurance and those who it best suits.

The Benefits

The first benefit relates to ease. Unlike most other policies, guaranteed acceptance life insurance requires no medical exam and asks no health-related questions. This means instant approval for any applications, no matter the condition of the health of the person applying.

Instant approval from being simpler also opens the policy to anyone. Having a condition that would typically rule you out from other types of health insurance would not rule you out with guaranteed acceptance life insurance. No matter your age or health status, you can access this form of health insurance.

With instant approval, no time is wasted in waiting for the application to be assessed. One option within guaranteed acceptance life insurance allows for a person to have access to the policy benefits upon first payment. Unlike other health insurance policies that put a two to four-year waiting period, this policy doesn't require a waiting period.

Within this type of insurance policy exists a variety of options and benefits that can be tailored to suit your needs. For instance, one can have the option of 'no waiting period' or 'no medical exam' switched on or off for the desired policy. This flexibility gives a greater choice to the person looking for a policy to suit their case.

The Drawbacks

The main drawback comes from the costs associated with guaranteed life insurance. Since the insurer takes on more risk by not asking health questions or requiring a medical exam, they open themselves up to more certain costs in the future.

To account for this risk, the price of these guaranteed policy rates are significantly higher than others. The benefits of getting the life insurance immediately and with no health assessment mean the cost to the policyholder will be adjusted to pay for those perks.

Second, the benefits included in the package—being the amount paid in the case of death—do not reach the same levels as long-term health insurance plans. Again the reason stems from the short-term nature which places risks on the insurer. These risks get offset by reducing the eventual payout.

Who is it For?

One group of people who benefit from guaranteed life insurance include the elderly. Around the age of retirement, or around 50, health insurance policies begin to become more expensive or outright inaccessible. For those wishing to plan for their loved ones' future, these policies can provide some relief in the face of future risks.

Those people who are denied health insurance for any number of reasons also benefit from guaranteed life insurance. Pre-existing conditions and health problems can be a barrier to securing health insurance, with many insurance providers not willing to take on the risks. Guaranteed insurance that stipulates no health checks provides a solution to those barred from using other insurance plans.

Lastly, those who suffer from a terminal illness can apply for guaranteed health insurance. The short turnaround time on policies and instant activation of policies means that funeral costs can be covered with a policy agreed upon in the short time someone may have left.

Final Thoughts

Most people will only need regular insurance plans to provide them with the security and peace of mind health insurance intends to give. However, if you fit one of the few cases in which guaranteed life insurance seems the best option it is essential to know that there are always options no matter what you may be facing.
 
 
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