Pros and Cons: Why choose Guaranteed Life Insurance?
Guaranteed issue life insurance is ideal for aging adults. It’s valuable for folks who have concerns about their eligibility or have been turned down for other life insurance due to health issues. But insurance is complicated. And nothing is perfect! The team at CoverageCoach is ready to provide you with frank and unbiased answers to all your senior insurance questions.
From the freedom of medical questions to modest death benefit amounts, here we’ll talk about guaranteed acceptance life insurance. As always, feel free to reach out if you have questions beyond the scope of this blog. Let’s take a look at the pros and cons of Guaranteed Issue Life Insurance!
The Pros of Guaranteed Life Insurance
Guaranteed life insurance boasts many positive aspects for seniors. It’s such a relief to purchase a permanent, whole life insurance policy that entails:
- No health exams, physicals, doctor visits, lengthy health interviews, blood work or blood pressure questions
- A guaranteed acceptance, regardless of your age or health history
- Premiums (the bill you pay for insurance) that will never increase
- A guarantee that your policy will never be canceled due to illness
- A build-up of cash value over time, which could be used in emergencies down the road
Guaranteed life insurance policies are a perfect way to provide for final expenses, leave a cash inheritance, or pay off debts. And they’re generally affordable!
But every silver lining has a touch of gray. This type of policy has two limits.
The Cons of Guaranteed Life Insurance
We love to be lighthearted at CoverageCoach. But no life insurance discussion could be honest without addressing reality — the risk of death. Consider these conditions about guaranteed life policies and their death benefits:
- You’ll need to pay your premiums for two years before the full death benefit kicks in.
- If you pass away before the two years, your beneficiary will only receive a refund of the premiums paid.
- Also, the death benefits are modest.
- Guaranteed life insurance policies are available with death benefits ranging from a few grand up to $25,000.
- So, while there’s no limit on the number of life insurance policies you can own, these policies won’t equate to millions of dollars.
But regardless of the two-year payment minimum and moderate death benefits, guaranteed life insurance policies have dozens of uses!
Ways to Use These Policies
The most common way to use guaranteed life insurance is to provide funding for final expenses. Folks use them to pay for funerals, cremations, monuments, etc. You can sit down with your family funeral home and make the arrangements ahead of time, or leave the policy to a spouse or loved one and explain your wishes to them.
But we’ve seen many creative uses of these life insurance policies too!
- Some folks leave a significant donation to a church or charity organization.
- Many people leave the cash benefit to a loved one. Your beneficiary could use the cash in any number of ways, like paying for a grandchild’s education or buying a reliable car.
- Death benefits can also be split among beneficiaries. A loving grandfather could divide $25,000 among five grandchildren, giving them each a $5,000 check upon his passing.
Ultimately, life insurance policies are an ideal way to leave cash to your loved ones, or pay some bills. If you’d like to learn more about senior life insurance, get in touch. We’d love to give you a no-cost, no-pressure consultation today!