What is a Guaranteed Issue Life Insurance in San Antonio?

August 27 2009 by visitor in Guaranteed Life Insurance |Comments Off

Reader’s Question:

An agent here in San Antonio, TX has been trying to sell me a guaranteed issue life insurance plan. What exactly is it and should I go with this kind of coverage?

Rico

San Antonio, TX

A guaranteed issue life insurance policy is a type of coverage that makes it possible for almost anyone to qualify for life insurance coverage. Unlike most forms of life insurance, this type of policy does not require applicants to undergo a medical screening to qualify for coverage. Some policies would only ask you to go as far as answering a few, health-related questions to facilitate coverage.

So What’s the Catch?

One of the drawbacks with this type of life insurance is the fact that it may be a bit more expensive that a regular type of life insurance. This is because the company is taking in a higher financial risk for not assessing your health and longevity. Also, it’s very typical for this type of life insurance to have graded coverage. Your beneficiaries can only get the full death benefits if you pass away after a certain specified length of time from the date your coverage began (contestability date). If you die, prior to this date your beneficiaries might only receive the premiums paid on the policy so far, plus applicable interest.

Should You Go With It?

If you are approaching (or is well within) the retirement age or if you have a certain medical or health condition that’s making you uninsurable, then a guaranteed issue life insurance is a god-send. Don’t forget to shop around and compare for the best rates. Life insurance comparison websites (like this one) can help you find the best-priced policies in San Antonio, TX (or anywhere else) quickly and easily.

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