Life insurance policies can be confusing. There are different types of policies and seemingly a dozen names for each type. Because of all this confusion, many people think they’re not eligible for life insurance due to age or health.
Guaranteed issue life insurance, also known as guaranteed acceptance policies, have no medical questions, exams or underwriting. You essentially cannot be turned down for this type of policy.
This makes them seem like a great choice for life insurance, however, these guaranteed acceptance policies are actually a last resort. Below, you’ll learn who they are for, and common misconceptions about life insurance.
I Can’t Qualify for Life Insurance Because of Disabilities or Health Issues
Many people think that serious health issues make you ineligible for life insurance, however that’s not the case.
Yes, some health issues will make you ineligible for an underwritten policy. But, guaranteed issue policies are specifically for people with serious health complications. Make sure you research your specific case before giving up. Some life insurance carriers treat health complications different, so be sure to look at more than one company before deciding.
For example, if you’ve had a heart attack, you may still qualify for a less expensive underwritten policy. This depends on a variety of factors, most notably, how recent and sever your last heart attack was.
Life Insurance Won’t Accept Seniors Over 70 or 80
As you get older, it’s no secret that life insurance gets more expensive, but if you’re under 86, you can qualify. It is, however, important for you to discuss this with your loved ones as soon as possible.
If you are over 70 or 80, then finding the right final expense policy can be confusing. If they have relatively good health for their age, then they might qualify for a simplified issue or other type of policy with medical questions.
However, you will not find life insurance over 85 years old. It may be the case that a guaranteed policy or a burial insurance plan makes more sense financially to help with burial costs and other expenses. This is depends on how the insurance company views the risk of the individual, so you should get quotes from different companies.
I Can’t Afford a Life Insurance Policy
Depending on your situation, life insurance policies can be expensive, but they can also help you pay for expenses. In general, if you have good health, then a guaranteed issue policy will be the most expensive option.
But if you have serious health complications like cancer, then the guaranteed issue policy may be cheaper even if you do qualify for other types of life insurance. This is because someone with serious health complications will be considered very high risk for a policy with medical questions or exams, so their monthly premiums will be higher.
In fact, those with declining health issues are the people guaranteed policies are for. Again, research your specific scenario or talk to a life insurance expert to find the best policy for your needs.
So How Do I Decide Which Life Insurance To Get?
Because there are so many different companies and so many different policies to choose from, it is best to get quotes or rates from a variety of places. This way you’ll be able to compare all your options and make an informed decision.
You’ll want to do lots of research and reading about your specific situation. You can do this through google searches like:
- Life insurance for people over 70
- Life insurance with ALS
- Best life insurance companies for [fill in the blank]
Another option is to use a life insurance expert. This will save you time, and typically save you money by finding the best rate and life insurance possible.