In the simplest terms possible, guaranteed issue insurance is insurance that is guaranteed for anyone in any physical condition without a medical exam
. This type of insurance is most attractive to that in poor health or with pre-existing medical conditions precluding them from obtaining other types of life insurance. These policies differ from simple issue or quick issue policies which usually do not require a medical exam, but will require you to answer some medical related questions. A true guaranteed policy will ask absolutely no medical questions.
Guaranteed term life insurance coverage works a little differently than buying a straight term life insurance policy. While basic policies allow you to choose the period for which you would like to be covered, guaranteed policies are issued at five and 20 year periods.
If you initially buy the five year term, you may renew every five years after that until the age of 80. At age 80 your policy automatically becomes exchangeable for a permanent life insurance policy. You are still automatically covered upon transfer to your new policy and still are not be required to undergo a medical exam. Your premiums are also guaranteed to remain level throughout the duration of your policy unless term life insurance rates increase across the board for everyone in your age range and state. Renewable term life insurance premiums are based on your current age.
If you choose to purchase the 20 year term, your monthly rates will stay the same for the full term of your policy regardless of any rate increases. Upon completion of the first 20 years you have the option of purchasing an additional 20 year guaranteed issue term life policy. Again, no medical exam is required nor will you be subjected to any health questionnaires. Some insurance carriers offer the option to convert a 20 year term policy into permanent life insurance coverage after the first 20 year period is over.
And some other benefits of having guaranteed Life Insurance:
. It cannot be canceled in case you develop a terminal illness.
. You can activate an accelerated death benefit in case of terminal illness; giving you needed cash to offset medical bills or special needs assistance.
. Your coverage is guaranteed to stay active for the whole term of your coverage. If you purchased the 20 year term, coverage would end if your benefits were accelerated.
. You have the standard 30-day money back guarantee on the policy. If you decide that the guaranteed issue term life insurance policy is not for you, you may request a refund of premiums paid to date -- no questions asked.