Guaranteed acceptance life insurance is a type of insurance policy that is designed to help people who have a difficult time finding coverage due to serious health problems. These policies have a waiting period before the benefits go into effect, which is usually 2 to 3 years. If the policyholder were to pass before the waiting period was over, the beneficiary would not receive the death benefit, but the paid premiums with interest may be refunded.
Qualifications for Guaranteed Acceptance Life Insurance
To access guaranteed acceptance life insurance, you typically need to fall within the age requirements of the insurance company, which is usually between 50 and 80 years old. The specific qualifications also vary based on your age and location. Some insurance companies may allow you to skip the medical exam depending on your unique circumstances.
Pros and Cons of Guaranteed Acceptance Life Insurance
| Pros | Cons |
|---|---|
| Helps people with serious health problems find coverage | Higher premiums than traditional life insurance policies |
| No medical questions | Waiting period before benefits go into effect |
| Refund of paid premiums with interest if policyholder passes before waiting period is over | Lower death benefit compared to traditional life insurance policies |
When Is Guaranteed Acceptance Life Insurance Worth It?
Guaranteed acceptance life insurance may be worth it for those who suffer serious medical conditions: terminall illness, on dialysis, need an organ transplant, are on hospice, have a chronic illness, have AIDS or HIV, or have Alzheimer’s or dementia. These plans may help prevent consumers from being turned down based on their medical history. Guaranteed life insurance for seniors may also be helpful as new health conditions can arise with age.
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Article Sources
- Investopedia. Guaranteed Issue Life Insurance - Aflac
- Investopedia. Best Guaranteed Acceptance Life Insurance Companies
- Forbes. Pros And Cons Of Guaranteed Issue Life Insurance
- Experian. Guaranteed Issue Life Insurance Policies
- Bankrate. Guaranteed Acceptance Life Insurance