Guaranteed Acceptance Life Insurance
Guaranteed Acceptance Life Insurance policies don’t require a medical exam as part of the application process, and they don’t require you to answer health questions. Because acceptance is guaranteed, these types of policies are generally more expensive than traditional, fully-underwritten life insurance policies and offer lower coverage amounts.
There may be an age restriction for policy approval when you apply for guaranteed acceptance life insurance. These policies are typically restricted to older adults between the ages of 50 and 85, but these age restrictions will vary depending on your life insurance policy provider.
These plans may have a graded death benefit for an initial period of time, which means if you pass away during this time there will be no death benefit paid, but premiums will be returned. Two years is a typical time frame for graded death benefits.
Guaranteed Acceptance Life Insurance policies are often 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.
What Is Guaranteed Acceptance Life Insurance?
Guaranteed acceptance life insurance can be useful to help pay for your burial and funeral costs after you pass away. Your beneficiaries can use the death benefit however they wish.
Because these policies are not fully underwritten, you won’t be able to get as high a coverage amount as you might be able to get with an underwritten Term Life or Permanent Life insurance policy. For example, many policies offer a maximum of $25,000 in coverage.
If you simply want coverage to help pay for your final expenses and don’t want to undergo a medical exam or answer health questions — or if you have health conditions that may prevent you from obtaining another type of life insurance policy — a Guaranteed Acceptance Life Insurance policy might be a good fit for you.