Guarantee issue life insurance is a type of life insurance plan that requires no medical exam for you to qualify. Getting this type of life insurance coverage only depends on your age, gender and state of residence. Guarantee issue life insurance is particularly ideal for the elderly and people who cannot get other types of life insurance due to their health issues.
Pros of guarantee issue life insurance
- It is easy for anyone to qualify
Unlike other types of life insurance, guarantee issue life insurance does not require you to fill out an application. And irrespective of your health problems or your age, you are not asked to undergo any medical exam. So, virtually anybody can get guarantee issue life insurance.
Cons of guarantee issue life insurance
- It does not pay death benefit during contestability period
Life insurance policies typically have a contestability period that lasts for two years after you buy your life insurance plan. In the event that you die within these two years, your guarantee issue life insurance will not pay out death benefits to your family. Instead, the premiums you paid during that period will be refunded to your beneficiaries.
- It is costly
Since there are no medical exams to assess your risk level, you will have to pay more on your guarantee issue life insurance policy. The reason for this is that the life insurance companies view you as a high risk individual. Also, if you desire a payment plan for your premiums, you might even be charged more.
- It has a low face value amount
Guarantee issue life insurance is basically made to pay for funeral expenditures. This is one reason why it has a low face value amount that does not exceed $20,000.