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Guaranteed acceptance life insurance for age 30 to 34 is a policy of the last resort. It is offered without going through an exam or medical questionnaire.

For this type of policy, the quote is based on three factors; gender, the state of residence and age.

In the guaranteed life covers, the insurer checks if the applicant can afford to pay the premiums. If they can they are issued with the cover. Typically, the premiums are expensive and could cost more than $200 every month. Unfortunately, the death benefits are lower.

The good thing about the guaranteed issue is that the policy has no limit. Also, it does not have an expiration date. So, if you start it while 30 years it will last as long as you pay the premiums.

When it comes to benefits, the policy requires that one should hold it for 2 years before they qualify.

When you buy guaranteed life insurance at age 30, it remains in force as long as you live and pay the premiums as required. If you die while the policy is active, the death benefits are paid.

It is a good policy for people who can afford the premiums. The policy features graded benefits. It implies that if one dies within the first 2 years, the beneficiaries will not be entitled to full death benefits. Instead, you will receive a refund of the premium.

Note: If you are above 34 years, check the post about guaranteed policy for 35 years old.

What Is a Guaranteed Life Assurance for People Aged 30?

Guaranteed life assurance for age 30 is a non-participating policy. It means that the holder will not be entitled to dividends.

Features are here:

  • It is for anyone aged 30 to 34 years.
  • It does not need underwriting, no medical exams, and no medical questionnaire.
  • The face value of the policy ranges from $2,000-$250,000.
  • Providers allow applicants to apply for the policy online.
  • There is a guarantee that the premiums will never increase.
  • If the premiums are paid as required, the policy can never be canceled.

The policy comes with a graded death benefit. It means that you will be entitled to 110% if the insured dies within the first 2 years. This will happen if the death is caused by natural causes.

However, after the lapse of two years, the beneficiaries will be entitled to the full face amount. For the guaranteed issue, if the death is caused by an accident, the benefits are paid immediately.

The guaranteed acceptance life insurance is neither burial nor a funeral contract. So, there is no guarantee that the death benefits paid will be enough to cater for goods and services provided.

Is The Policy a Good One?

This policy is suitable for anyone who has exhausted other life insurance options. It is a good cover if you are between age 30 to 34, because, at least you will be sure to survive the two years graded period.

It is one of the products that guarantee to live your family with some inheritance and also gives them a chance to make decisions concerning your funeral.

Note that a guaranteed life issue is a good option and could be the best bet for many people. The issuing companies are only interested in the age and not a medical exam. So, when you apply for the cover, you should not expect a nurse to visit your home for an exam.

It is an ideal policy for people who cannot get any other type of life insurance. If you don’t want to take a medical exam, it could be a good option. Even though, you may be required to pay more.

Why it is Worthy?

The premiums paid are high alright but still, it is worth. They could be four times higher than what is paid in other life insurance policies. It is a good policy that comes in handy for people who cannot get a cover elsewhere.

It is a good policy for people facing many health risks and who are looking for a life insurance policy. Another vital feature is that the policy will be issued for small amounts.

Besides, death benefits range from $5,000 to $250,000.

Circumstances Under Which You Can Be Denied the Policy

You can be denied coverage for three reasons.

First, the cover is expensive. So, if the underwriter establishes that you cannot afford to pay the premiums, you may be denied the cover.

Secondly, if you have been diagnosed with HIV and aids, you may be discriminated against. Even though, people with some chronic ailments may still get the cover.

Thirdly, this cover is for people who are 30 years. So if you are already in your 50s or 70s, you may not be eligible. For elderly people, we have a different post. You can find it here.

Benefits of the Policy

The policy is normally described as a policy of last resort. It is ideal for people who may not qualify for an ordinary term life insurance. For instance, if you are aged 30 but you face a serious health issue, this cover could be the best option for you.

If you can afford to pay the premiums, it guarantees to give you the policy since there is no medical exam required. Besides the policy takes a shorter period to become effective. This is not the case for other types of life insurance covers.

Reasons for Buying the Policy

  • One of the main reasons why people buy the cover is that it guarantees to pay money that can be used to cover funeral costs.
  • It also guarantees a cover even when one has a serious health condition.
  • It adds something to the financial foundation when people are still in their 30s.
  • If you die and leave behind a young spouse and children, they will have something to lean on.
  • You are likely to be charged less compared to going for the cover in your 60’s.
  • It reduces the stress associated with paying for funeral costs. Thus, it helps to saddle your loved ones from these costs.

Demerits of the Cover

The guaranteed life insurance is not the best option.

It has the following demerits:

First, it is expensive and could cost up to 4-5 times the amount you would pay on other types of life insurance covers. The insured may be required to pay up to $200 per month. This is too much compared to what is paid by other funeral covers.

The death benefits are quite small. Whereas other policies can provide as much as $10, 00,000, the guaranteed issue will give between $2500 to 250,000.

The policy offers coverage units. The unit price changes depending on factors such as the medical condition, location, and age. But even when the price is changing, the amount of coverage remains the same. To get a larger benefit, it may necessitate that you buy multiple units which are costly.

Unfortunately, the policy has a graded life feature which is not a very good thing. It means that you cannot get full death benefits if you die before the end of the second year of the policy.

If it happens, you will only get the premiums refunded. So, for people who are ill but looking for a cover, the graded life feature makes the policy unworthy.

The guaranteed acceptance cover features knockout questions. These questions may make you miss the coverage. The questions revolve around whether you are residing in a nursing home or you are infected with HIV or aids. Besides they may want to know if you have been diagnosed with a terminal illness.

Options Available to People

Alternatives to guaranteed acceptance life policies are:

Term Life Insurance

If you are one of the shoppers with a serious illness, you may want to buy a no exam policy. But, you may don’t know that you can still get qualified for general term life insurance.

You should not be hopeless before trying hard. There are lots of insurers, so, the chance of getting approval is quite high.

Simplified Issue

It is another option you may want to consider. It falls between the guaranteed issue and term life insurance. The policy is expensive compared to term life but cheaper than the guaranteed acceptance.

Unfortunately, the policy does not offer much coverage. However, it could be a good policy for a healthy smoker who does not want to go through a medical exam. Also, one may receive coverage of up to a maximum of $350,000.

When you chose to go for the simplified issue, you will need to answer a few questions on your lifestyle. The information you give will be checked and verified with your database. They will also run a check to see if you have ever applied for a life insurance cover from another company.

If it is found that your application was declined, you are considered high risk. Your application will be declined since you will be considered ineligible.

If you don’t succeed in securing a simplified, term life and a guaranteed acceptance issue, you don’t need to worry. The other options you may need to consider are:

Funeral Insurance

It may be sold by funeral homes and names the director of such a home as a beneficiary. Death benefits will thus cover services that you discuss with the funeral director. The policy gives you a chance to buy the services in advance.

You will be able to lock in future prices at the current rate. If the prices increase before you die, the funeral home caters for the difference. It saves your family or estate from footing the additional expenses.

Pre-Need Contract

It is offered by a funeral home and allows you to pick out the services you want to be covered. So in this case, you will not be required to pay premiums. But the monthly payment you make goes to pay for future funerals.

 In such a case, you will be expected to pay the full amount. But if you die before paying the full amount, your estate or family will need to pay the difference.

Where to Buy the Guaranteed Acceptance Policy?

The policy is available from many companies. They include Gerber Life, Colonial Penn and many more. The products are advertised on TV and other media.

We offer FREE quotes comparison service on our website. You will find quotes requesting boxes on the right, middle and top of the page. You can request quotes and you will be directed to the right insurer.

Conclusion

Guaranteed acceptance life insurance is, obviously, one of the options you may need to consider if you are unable to obtain life insurance coverage. You do not need to meet many requirements and there will be no exam.

It is an expensive cover but at least it guarantees that your loved ones will have something to lean on when you are no more.