Guaranteed Life Insurance:
We’ve all seen the ads on TV about guaranteed life insurance, but what does it really 
mean?
- The cost is far higher than standard life insurance premiums
- The amount of benefit available is not very high, often maxing out at $25,000 or $50,000
- Who is it for? People who are not eligible for standard insurance due to health reasons or height/weight.
- Can it be worth it? Perhaps… if you have a risk you really want to cover, it all comes down to how long you end up paying premiums before you die.
- There are solutions available for people at older age but again, the cost is high
Simplified issue Life Insurance:
Simplified issue is different as there are pre-qualifying questions but they aren’t as detailed as fully underwritten plans:
- It is for people who would maybe qualify for standard insurance but don’t have the time or desire to go through the regular underwriting process.
- The premiums are often the same as a standard product or a bit higher
- The amount of benefit available isn’t as high as the standard issue but for many it is enough to cover their needs as some plans are up to $100,000
- This is a great first step if you are a bit concerned about getting qualified, put a simplified policy in place and then you can go ahead and see if you can get qualified on a fully underwritten plan. If you get approved you can then cancel the simplified issue plan.
A few companies offer these plans so your advisor can help you sort out which solution suits your needs best. If you can answer “no” to 6 to 10 questions and there are no red flags that come up when they pull a review of the Medical Information Bureau (MIB) you will be approved without further underwriting. If a red flag does arise you will be asked to take part in regular underwriting, you will either be approved standard, be approved with an extra rating on your premiums from 50% to up to 300%, or you could be declined.
This type of coverage is generally used to cover off your final expenses, funeral, burial, final taxes and other debts. If you have other needs such as leaving an estate, coverage a mortgage or other debt then there are other products better suited for those needs. Talk to an insurance advisor, it’s our job to make sure you know what is available and how different solutions fit different need and risks.
Remember, insurance is like credit, once you need it you can’t get it.
Confucius said “Insurance is like a parachute, if you didn’t have it the first time you won’t be needing it the next:”
Have questions?
Call me at 778-986-9186 and let’s see if I can “Reynolds Wrap” your risks and give you peace of mind.
