Unfortunately, we will all die at some point. For most of us, though, when we die, we want to ensure our loved ones are not burdened by the costs of burial and related expenses. To protect loved ones from this financial burden, you may want to take out some insurance for the eventuality.
Guaranteed acceptance life insurance, also referred to as no question's life insurance, or no questions final expense insurance, is a kind of whole life insurance policy that does not demand you to answer any health questions, go through a medical exam, or permit an insurance company to review your medical and prescription records.
According to Gary Cubeta, creator of InsuranceforFinalExpense, which provides final expense coverage, Colonial Penn 9.95 is a great example and option for your life insurance. However, while the insurance policy sounds good, the catch here is that guaranteed acceptance life insurance can be costly and it always includes a waiting period. If one dies during the waiting period, your beneficiaries will not receive the policy's death benefit.
Many policies have a waiting period of two years, and with some policies, it may be even three years. If one dies within this waiting period, the insurance providers will repay (to your beneficiaries) all the insurance premiums along with interest, generally at a rate of 10%.
So, how much do you spend on Guaranteed Acceptance Insurance?
As guaranteed acceptance life-insurance is highly accommodating and covers high-risk people, it is more expensive than other types of final expense life insurance. It generally costs a maximum of $200 each month for some consumers, and death advantages are quite low (generally topping off at nearly $25,000).
Moreover, the policy will continue for as long as you pay for it. It means there is no term restriction or expiration date. Generally, you must be a policyholder for two years before you can gather the benefit.
How are Guaranteed Acceptance Premiums calculated?
Guaranteed acceptance life insurance, like any other life insurance, acts by offering coverage in units. With other kinds of life insurance, like the term, the unit price is going to alter depending on variables such as location, age, and medical conditions. The sum of coverage, however, is always going to stay the same.
With guaranteed acceptance life insurance, the unit cost may be fixed, like Colonial Penn, 9.95 is fixed, which is contrary to most other life insurance products. Here, the coverage amount you receive is what alters with the guaranteed issue.
Moreover, the insurers decide the coverage according to three variables: sex, age, and location. But you can purchase multiple units of coverage to get a better death benefit.
How to buy a Guaranteed Acceptance Life Insurance policy?
Unlike other life insurance products, you mostly purchase a guaranteed issue or acceptance life insurance policy directly from the company offering it.
Since quotes are decided on three variables, namely sex, age, and state of residency, many companies even offer you their online quoting engines. But you may even get quotes for guaranteed acceptance life insurance products from independent online quoting engines.
But remember that an agent or broker can contact you to confirm that you have no disqualifying conditions, such as a terminal diagnosis. They also ensure that you purchase the right amount and length of coverage.
When you submit your application, you will swiftly decide as there is no medical exam or any reports that the insurer wants to consider.