When we reach the age of “only” 50 we may start to find it difficult to get approved for life insurance. For many of us there is considerably less of an insurance need but we might be concerned about not leaving a financial burden for things like funeral costs, or helping your beneficiaries cover any capital gains tax during an estate transfer. In response to those specific needs insurance companies started marketing “Over 50 Life Insurance” that guarantees insurance protection for life.
What is Guaranteed Issue Life Insurance?
We hear on T.V “if you are between 50 and 75 you are guaranteed to be accepted – without health questions or a medical exam!” This “guarantee” is reflected in the premiums which will be considerably higher compared to a similar amount of coverage with a more traditional form of life insurance. Since these polices are built for the purpose of meeting final expenses and such, the maximum death benefit is usually capped. The premiums are typically guaranteed to remain level for the duration of the policy. It’s important to be familiar with the terms of your policy because some companies will not pay a benefit you the insured person dies during the first 2 years of coverage. In this case the life insurance company usually guarantees a full refund of all the premiums, or 100% premiums plus a percentage.
What are Your Options?
Speak with one of our experienced professionals who can put together a set of options for you. He/she can take you through each option and allow you to make an informed decision. Many people default to guaranteed issue life insurance coverage because they fear that a medical condition may exclude them from a traditional policy. If you have reasonably good health, and follow the doctor’s orders (taking medication as prescribed), then it’s likely that you are eligible to receive a lower premium than that offered by guaranteed issue life insurance.
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