If you are worried that you can’t qualify for a policy, guaranteed acceptance life insurance with no waiting period is the one you should look for. It doesn’t require any medical exam, and anyone at least 40 years old or, above can qualify for it.
The truth is that your life insurance depends on a few factors. The older you get, the harder it gets to find affordable life insurance.
However, there are still many options that you can take advantage of if you are a senior.
In this article, we will discuss the guaranteed issue life insurance, the waiting period, and how to get it.
Looking for Guaranteed Policy without Waiting Period?
How Guaranteed Acceptance Life Insurance Works?
The main characteristic of this policy is no medical exam. It could be term life insurance or whole life insurance.
The insurance company doesn’t need to know much about your medical condition. Therefore, it may be more expensive than a normal one.
To get the policy, all you have to do is apply and pay the premiums on time.
What is the Waiting Period of Life Insurance?
A waiting or qualifying period is something that most insurers include in their life insurance policies. Within this period, the insurer will analyze and investigate your profile and keep your death benefit on hold.
You can’t claim the death benefits when you are in the waiting period. As soon as time passes, the policy kicks in, and you become eligible for the full advantage.
An insurer implies this rule to avoid loss. For life insurance, the time is two years or more. Generally, serious health issues are seen within a short time. So, if you can pass these first 2 years, you are less risky to the company.
But, what if someone dies within this period?
The death benefit is not given, but there is an interest added to the premium already paid. The interest rate depends on the insurer. Most of the time, it is the same as the bank.
The good news is, you can skip this waiting period.
Does There Exist Any No Waiting Period Life Insurance?
Yes, such policies exist!
Some companies are ready to give their customers the full benefits of life insurance after the first installment is made.
When you pay the first premium, you become eligible for the full death benefit of the policy.
Undoubtedly, this is an excellent benefit for the people who do not want to go for a medical examination and the waiting period. But, guaranteed issue policies come with expensive tags.
Who Needs Life Insurance Without Medical & Waiting Period?
Many segments of people buy life insurance policies for different reasons. Some of them are:
People with Critical Illness
These policies are often bought by people who suffer from critical illness. It makes them concerned about the financial instability of their family. Better late than never, they are ready to buy this policy for the betterment of their loved ones.
They look for policy options with full coverage benefits on paying 1 or 2 installments only. The high amount of uncertainty of life due to illness is the leading cause of buying these policies by the people.
Seniors with Bad Health
Some older people seek guaranteed issue life insurance to meet their burial expenses. Due to their age and health conditions, they get unsure about their life expectancy.
They buy such policies to ensure that their dear ones do not feel the burden of their final expenses.
In some cases, the beneficiaries can pay the deceased’s pending last medical bills and debts through such policies.
Anyone Suffering from Chronic Illness
Then there is a segment of people who suffer from chronic illness. Chronic illness is not always life-threatening, but it’s non-curable. It goes on with the patient as it comes through their genes.
Generally, a medical examination is done to estimate the danger associated with such illness in such cases.
When the medical reports illustrate this illness as a health problem, the companies ask them to pay an extra amount for buying regular insurance policies.
If the customer feels that they are paying the additional cost, then why not buy a policy without a medical examination? Such policies help them to save on the waiting period too.
So, without a doubt, no exam life insurance and no waiting period become their priority.
Who Thinks Medical Test is a Hassle
Other than this, some people do not want to go through the hassle of medical examinations. They look for more accessible policy options in a quick time.
Life insurance without medical examination becomes their ultimate choice. Sometimes people do not want to disclose their medical condition to their family, friends, or business allies.
Their concern for their family’s financial future makes them purchase life insurance with no medical and no waiting period. It ensures that their survivors get a comfortable life even when they depart from the world.
There are several reasons that people have started showing significant interest in buying such policies.
Their rising demands and queries have been the reason that the insurance companies have introduced such plans for their customers.
What are the Limitations?
There are two significant drawbacks of the policies that do not include a medical examination and waiting time.
Customers need to pay extra to buy guaranteed life insurance plans, and the cost difference is quite huge in some cases.
For example, suppose you are paying X amount for purchasing a standard insurance policy. In that case, you may have to pay X+ 0.5X, i.e., 1.5X, for buying the policy without a medical examination and having no waiting period.
The cost varies as per the buyers’ age group, and it often ranges somewhere between 40-50% of the original price, which is a massive sum for an individual.
The amount that can be availed or insured is more diminutive and limited.
For example, if you want to ensure your family with a sum of $50,000 via life insurance, a policy without a medical check-up, health questions and the waiting period will not allow you to provide the coverage for this whole amount.
You have a limit on the amount to be paid at the maturity of the policy.
Eligibility and Procedure to Apply
Everyone above 40 years is eligible for these policies as there is no condition for medical exams and age.
The process of availing of these policies is straightforward. You need to start by filling up the application form (if you have already finalized the company from where you want to buy the policy.
If not, then you need to do the market research and decide. There is more information on this topic later in this post).
In some cases, the customers can book their policy by online application or phone booking method too. You need to give accurate details of your residence, nominee, bank accounts, etc.
It is possible to discuss the premium payments and other details at any stage. It is advised that the customer be completely aware of the terms and conditions of the policy well before they buy it.
Generally, there is no exam, and waiting period policies are approved instantly as there are no further investigations needed to be done.
The companies also want to close their targets and further simplify the process of buying such policies for their customers.
As the first step, fill up the online quote forms of the various insurance companies which offer such policies and submit them. You will get complete policy instructions in your email.
How to Find the Best Company?
The internet is the best source for all sorts of information pertaining to insurance.
Especially when the client wants to buy a particular type of policy, it is suggested that they should look for the information related to such policies, read their terms and conditions in detail, and find out the reviews of the existing customers.
These days various companies and websites offer a comparative analysis of the policies from different companies.
Such critique can be constructive for the customer to know the pros and cons of all possible options from different insurance companies.
Only Choose the Amount You Can Pay
First of all, look at the affordability of the policy.
If it is too expensive and affects your budget significantly, you can discuss the terms with the insurance-providing companies or consider the competitor’s policy with similar benefits.
Try to Get Additional Benefits
At times the no medical exam policies have a minimal waiting period too. Although this waiting period may not varies up to months or years; still, the amount of time should be ascertained by the customer before buying.
Trust only the well-recognized brands when you play with life’s most significant savings for your loved ones.
Trusted companies are never at the risk of going berserk, and their solid financial roots help them stay firmly in the field.
You can check the company’s financial and customer service background at their help desk or online forums.
Yes, there is an alternative to this policy, and you already know about it. Guess what?
Traditional life insurance needs a medical exam. You may wonder why we are suggesting this. The only reason is the cost. You are going to pay a lot more if you choose a guaranteed policy.
Most of people make this mistake, and without doing proper searching they buy this expensive policy. You may have poor health but still may have the opportunity to get a cheap policy.
Always search for other options before you choose guaranteed acceptance life insurance with no waiting period.