Have you ever been told no when you tried to get term life insurance? People who have trouble getting basic term life insurance can get guaranteed issue term life insurance. A "simplified issue policy" is another name for guaranteed-issue term life insurance. You are automatically covered, and you don't have to go through a medical exam. You will pay a higher premium for term life insurance if you want to be sure of coverage. Insurance companies take a bigger risk when they cover people without knowing their full medical histories, so they should pay more for the coverage. People who were born with or who have developed long-term health problems should buy a guaranteed issue term life insurance policy.
How Guaranteed Coverage works on the inside
The way guaranteed term life insurance works is a little different from how a regular term life insurance policy works. Basic policies let you choose how long you want to be covered for. Guaranteed policies, on the other hand, cover you for either five or twenty years.
If you buy the five-year term at first, you can renew it every five years until you turn 80. At age 80, you can automatically change your policy into a permanent policy. When you switch to your new policy, you will still be automatically covered, and you will still not have to get a medical exam. Your premiums are also guaranteed to stay the same for the life of your policy, unless rates for term life insurance go up for everyone in your age group and state. Premiums for renewable term life insurance are based on how old you are now. Visit http://www.equote.com/li/termlifeinsurance-quote.html to get term life insurance rates right away.
If you choose the 20-year term, your monthly rates will stay the same even if rates go up during the time you have the policy. After the first 20 years, you can buy an additional 20 year guaranteed issue term life policy if you want to. Again, you won't have to take any health tests or fill out any health questionnaires. Some insurance companies will let you change a 20-year term policy into a permanent policy after the first 20 years are up.
Note that you can only buy a certain amount of face value for a guaranteed term life insurance policy. The coverage amounts start at $5,000.00 and go up in $5,000.00 increments all the way up to $25,000.00. The face values don't go down as you get older or as your health gets worse. Go to http://www.equote.com/li/termlifeinsurance.html to learn more about term life insurance.
Other benefits of having Guaranteed Issue Term Life Insurance:
You can't cancel it even if you get a disease that will kill you.
If you have a terminal illness, you can use an accelerated death benefit to get the money you need to pay for medical bills or help for people with special needs.
You can be sure that your coverage will be in effect for the whole time you have it. If your benefits were paid out early and you bought the 20-year term, your coverage would end.
The policy gives you the standard 30 days to get your money back. If you decide that the guaranteed issue term life insurance policy is not for you, you can ask for a full refund of all the premiums you've paid so far.