When is the best time to buy Guaranteed Life Insurance?

Guaranteed life insurance policies are perfect for older adults. The beauty of these policies is that your acceptance is guaranteed! There are no medical questions involved, no doctor visits, no need to visit a lab for blood work, or blood pressure checks. Let’s discuss the options of the best timing for your life insurance policy.

A guaranteed life insurance policy is an ideal way to:

  • Pay for final wishes and funeral costs
  • Create a cash inheritance for your heirs
  • Pay off debts for your family — like a vehicle or the last years of a mortgage
  • Pay off some or all of a reverse mortgage
  • Send a child or grandchild to college
  • Leave a meaningful donation to an organization you admire

If you’re a senior with questions about life insurance, you’ve come to the right place! CoverageCoach is here to provide honest and unbiased answers to your senior health insurance and senior life insurance questions. So let’s take a closer look at the timing of life insurance.

Life Insurance Basics

There are essentially two kinds of life insurance: term life and whole life. Insurers come up with different names for them, and various bells and whistles, but in the end, any life insurance policy is either term or whole. 

Whole life insurance policies last your entire lifetime — thus the name whole life. They might also be called “permanent life insurance.” All whole life policies:

  • Cannot be canceled by the insurer as long as you pay the premiums on time
  • Stay the same price for the rest of your life
  • Build a cash value — insurance companies invest part of your premium payment, and after some years you can cash this money out or use it for other emergencies.

Note that many people use whole life insurance as a long-term investment for their future. But it takes many years to create meaningful cash value.

Guaranteed acceptance life insurance is whole life insurance. Once you start paying the premiums, your cost will never increase. The insurer will never cancel your policy for health reasons. You’ll be covered for your entire life!

Term life insurance works differently. It’s based on a set time frame. “Term” means time. These policies are guaranteed only for a set number of years: five, ten, even thirty years. After the term is up, you and the insurer need to reach a new agreement for coverage. Your cost will increase with age, and they may decline to insure you if you have health problems. Guaranteed life insurance is NOT term life insurance.

When is the best time to buy Guaranteed Life Insurance?

Any mature adult can qualify for a guaranteed life insurance policy! Whether you’re healthy or unwell or have other life insurance policies, you are eligible. You can purchase these policies as early as age 50 or 60 in many states.

We need to mention that most guaranteed life policies will provide a full death benefit after two years. Before that, they’ll only refund your premium payments to your heirs.

Who is not a good match?

Guaranteed acceptance life insurance policies don’t make sense for young people. These folks are on a different point on their financial journey. They’re better off with other types of insurance. For instance:

  • A young, healthy person will get better coverage by jumping through hoops like medical exams and questionnaires.
  • These bigger benefits would be more appropriate for paying off a huge, new mortgage, providing educations for all their children, and investing for future retirement decades from now.

We hope we’ve covered your questions about guaranteed life insurance. Reach out to the team at CoverageCoach if you need to know more. We’d love to give you a free, no-pressure consultation today!

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