Guaranteed Acceptance Life Insurance
Guaranteed acceptance life insurance does not require a medical exam or any health questions as part of the application process. Guaranteed acceptance life insurance policies typically have age restrictions. 50 to 85 is a common age range, for example, but age requirements will typically vary from one policy to the next.
Guaranteed acceptance life insurance policies may have a graded death benefit for an initial period of time, which is often two years. If you were to die during this period, no death benefit would be paid out but the premiums you paid would be returned.
Who Should Purchase Guaranteed Acceptance Life Insurance?
One reason some individuals might avoid purchasing certain term life or permanent life insurance policies is the medical underwriting process that may be involved with the policy application. Because guaranteed acceptance life insurance policies don’t require medical underwriting, they may appeal to certain people who have a history of health problems.
Answering health questions and undergoing a physical examination may be intimidating and discouraging if you have health issues (or a family history of them). Health problems that are noted during the underwriting process might make some types of life insurance policies unaffordable or unobtainable.
The application process for a guaranteed acceptance policy is usually much faster than a traditional, fully underwritten life insurance policy. If you need to secure coverage quickly, a guaranteed acceptance policy may be a viable solution.
Guaranteed acceptance life insurance policies are also sometimes referred to as "final expense life insurance" policies. They are typically used as a last resort when someone is not able to qualify for traditional life insurance and is seeking to purchase a policy to address their final expenses.
Is Guaranteed Acceptance Life Insurance Right For You?
If you want to leave something behind for a loved one but have a health issue that’s getting in the way of obtaining other forms of life insurance, a guaranteed acceptance policy might be worth considering.
You may also consider purchasing a guaranteed acceptance life insurance policy if you want to leave a limited amount of money (many policies offer a maximum of $25,000 in coverage) to help pay for your burial and funeral costs after you pass away. Keep in mind, however, that your beneficiaries may use the death benefit from the policy any way they see fit.
Contact a licensed insurance agent to learn more about this kind of coverage and whether or not it’s a good fit for your needs.