Life is full of surprises, and as a result, it is difficult to predict when certain things will happen. One day you may be alive, and the next one you are not. As a result, having a good plan for your life is crucial.
However, often our health keeps us away from buying a life insurance policy, especially when we cross 50 years of age. Here, guaranteed acceptance life insurance for age 50 years old comes in help.
What is Guaranteed Life Insurance?
Guaranteed life insurance is should not be confused with whole life insurance. A guaranteed issue life insurance is designed to work just like a complete life insurance policy, but there is no medical exam required.
It is a type of policy where the company does not care about your health status. As a result, it is given the name.
Many policies have medical exams that end up blocking many people from accessing them. They may also end up affecting the premiums. And many people are scared of taking them. But not for this one.
How Does it Work?
Understanding how guaranteed life insurance for 50-54 year-olds works is a crucial step before you go ahead. Here is how a guaranteed policy works.
The first thing that you have to take note of is that there is no medical exam. You are not even required to provide your medical history. As a result, anyone with a severe medical condition or a history that may make it difficult to get life insurance from other options can take it.
Although the premiums may be a bit higher than other options, you are guaranteed the insurance as long as you can afford it.
Compulsory Waiting Period
Are you thinking of a guaranteed policy, and you are worried about the compulsory waiting period?
A waiting period in insurance is a period of time that the insurance company takes to examine your health status. During this period, you will be paying the premiums, but you will be considered for just partial benefits.
In case you die within this period, your nominee will get the premiums back and a small part of the interest. However, if you survive the period, you will start receiving full benefits.
Coverage Option is Narrow
Due to the fact that there is no medical exam required, everything else changes. The insurance company considers you a “high-risk client.”
The result of this is high premiums. Other than that, the coverage for the policy is very low. This is because insurance companies do not want to commit so much to a client who may die at any time due to health status they know little about.
What it means by coverage is how much a company is willing to offer you as benefits. As a result, many companies have coverage of up to $25,000 for guaranteed issue life insurance for 50-54 years, which is narrow when compared to other types of policies.
Don’t Try Guaranteed Policy First – There are Alternatives
It is not always the only first option you have. This also leads to high premiums due to the fact that the company does not know your health conditions, which can be high risk.
Consider taking a term life insurance before you can settle on the guaranteed issue. Whenever you know that you are healthy and you do not have any health history that may disqualify you for a term life insurance cover as it is much more affordable.
However, if your focus is on getting lifetime coverage, and you do not want to go with the high premiums that come with a guaranteed option, then you can opt for whole life insurance. This means that you will not have to pay high premiums.
However, you have to make sure that you do not have any health concerns that may lead to rejection.
Basically, this means that there are many other alternatives. The determinant is if you have any issues with your health or not.
Is It Good for You?
The question of whether it is right for you can only be answered based on your conditions and your needs.
Are you a person falling within the age limit of the company? Do you have some health problems that will lead to a rejection in case you undergo a medical exam?
With all that said, it is a good option if you do not want to experience difficulties getting approved for other types of life insurance covers. As long as you are able to afford the premiums, then it is good for you.
However, you have to make sure that you have explored the possibilities of getting other policies
Advantages of Guaranteed Policy for Age 50
The policy comes with several benefits that can be really important when it comes to financial security.
These are pros that are definitely worth knowing about if you are going to take this option.
Whole Life Protection
The main feature is that it is available for the rest of your life. This is because it is designed to work just like a whole life insurance policy. You will be covered for the rest of your life as long as you are paying your premiums. There is no worrying about expiration dates.
No Medical Exam Required
It does not mean that simply because you have a bad health condition, you do not deserve a life insurance cover. When you get rejected, or you are worried about rejection for other types of policies, then this is the best option for you.
It does not matter what previous history you have had in terms of health. When you go for the guaranteed policy no one cares. You can even take this policy when in a bed hospital. Whatever you have to do is make sure that you provide some little information about your life.
You also have to make sure that you can afford to pay for the premiums. And of course, it is a must to meet the age requirements since many insurance companies have 75 as the age limit for guaranteed acceptance life insurance.
This policy is not so much different from whole life insurance only that there is no medical exam required. As a result, most of the things that you get in a whole life policy are available. And one of them is cash value.
With this type of insurance policy, you will still gain cash value as an investment in your policy. All you have to do is make sure that you are paying the premiums as per the policy and the cash value will start accumulating as time goes.
Due to the fact that you have a cash value for this type of insurance cover, it means it is possible to withdraw your cash at any time. It leaves you with an option to use the cash value any time you need the money, or there is an emergency.
Simpler Application Procedures
Applying for life insurance can be a serious process that is also irritating. However, when you are taking a guaranteed policy everything else is different. For this option, the process is much simpler. The main reason being there is no medical exam required.
In many cases, a medical exam causes a lot of problems and a lengthy process. Hence, without it, it is easy to get everything done within a short time.
Helps Your Family Deal with Final Expenses
When you die, you want to make sure that your family is not left in problems of debts. With the policy, you will give your dependents enough to take care of your funeral and all other related costs.
Other than funeral related costs, there is an issue of medical bills in case there are any. With the death benefits, you can leave your family members with a lot of money to help them deal with any medical bills.
Death Benefits for Your Family
It is not all about the final expenses. One of the main reasons for taking life insurance is to offer your family some financial security once you are no more. This policy provides significant death benefits that will leave your family with enough financial security.
Who Benefits the Most?
The first thing you have to understand is that it is life insurance like any other that will mature upon your death as long as you have been paying your premiums as stated.
As a result, the main beneficiaries of this type of life insurance are your dependents. They will get the death benefits upon your death. Since it is a type of insurance policy you can take whenever you have serious health conditions, it means it will leave your dependents with some money to help them take care of any hospital bills.
The money from the benefits can also be used to take care of the funeral expenses. If you have left any children, grandchildren, or wife, they can also use the money for their own costs, such as school fees.
As a result, it makes it one of the best policies for someone with serious health conditions that may lead to rejection for other options. This is because it also leaves you with a chance to leave your family or relatives with some financial security once you die.
However, you can also benefit from this type of insurance since it comes with cash value. This means it is a good option for people who are above 50 years old, and they are not able to take other types of policies due to their health status but want some cash value.
However, note that there is little to gain from this plan since it is costly, and the overall death benefits are lower when compared to other types of policies.
Disadvantages are Also Important to Know
Do not forget about the disadvantages. There are a few of them that are worth knowing so that you will have a clear picture of what you are about to buy.
It is Expensive
This is the first disadvantage that comes with this policy. An insurance company will consider you a “high-risk client” when covering you without knowing your health condition. As a result, the premiums are very high compared to any other policy.
Low Death Benefits
When compared to other types of life insurance covers, this one has the lowest death benefits. It is evident that it is because of the risks associated with the client. Whenever a company insures you without knowing about your health status, it means they are taking a huge risk.
You may die at any time due to health problems unknown to them. As a result, they are not willing to risk their money by giving you big death benefits. Basically, it is the way to go since you want life insurance, and you do not want to undergo a medical exam.
You end up paying the price of high premiums and lower death benefits as compared to other policies.
The process of applying for a guaranteed plan is not difficult or complicated as long as you follow the steps keenly.
The first thing you do is to find the right company to work with. To do this, you have to start by getting an insurance agent who can guide you through that. All you have to do is consult an insurance agent who will help you look at different companies and how they work.
When you have a look at different companies, you will be able to compare their terms. Ensure you compare different companies to look at their various premium charges, terms of operation, age limits, and other factors.
Once you are sure of which company to go for then the next step is to make an application for the coverage. Some companies have online systems as well, others don’t. Consulting an insurance agent or expert can work very well when making your application.
Always remember that you will be required to provide some information about your life when applying for insurance. You will also be asked some questions that will help the insurance company to know more about you. There will be no medical exam, though.
Once you have been pre-approved, the next thing is to finalize the policy agreement with the company. Then you will receive the guidelines on how you will be paying the premiums. In case you are not sure about anything, make sure that you talk to an advisor or agent.
What to Look for When Applying?
Like any other type of life insurance plan, there are several things to look at when applying in order to make sure that everything runs smoothly.
Selecting the Company
The first thing is to select the right company. Not every company that is offering a guaranteed acceptance life insurance is worthy of working with.
Look through their terms and conditions and make sure that you are satisfied with what they are offering. You do not want to select a company and start regretting it in the future.
Ensure that you meet the requirements. What requirements are set by the company?
Some companies have an age cap; you have to make sure that you fit within the age blanket. Guaranteed plan is mostly offered to people from the age of 50, and different companies will have a maximum age limit.
Can You Raise the Premiums?
Premiums are one of the most crucial parts. If you cannot pay the premiums, then everything else will go to waste. You have to make sure that you are comfortable with the premiums before applying for the insurance policy.
Are you comfortable with what the company is going to offer? Putting all other terms aside, death benefits have to be looked at separately. They are why you are taking the policy.
Make sure you consider various companies to arrive at one that offers the best benefits.
Are there any special features from the insurance company? Some companies have incorporated special benefits.
Special Factors for People at 50-54
At the age of 50, you need to have a great after doing the financial plan for your family. It can take care of them or even help them deal with funeral expenses. However, if you have a bad health history, you may not be lucky with other types of policies.
The majority of insurance companies offer this plan for people from the age of 50. That means that you will be falling within the age limit.
There are also companies that provide unique benefits to people taking it. Some companies will offer a special benefit for chronic illness.
This is where the company refunds you all the premiums in case you are diagnosed with such a condition, and you are not able to use at least 2 of your six daily living activities. That may be either eating, bathing, continence, transferring, dressing, or toileting.
A medical exam does not have to be the limit to life insurance anymore. It was like that before, but it is not now. With guaranteed acceptance life insurance for 50 years old, you have more freedom, and there is something for everyone, even the old and sick.