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What is guaranteed issue life insurance policy? There are many ways to describe it, because such policy has many peculiarities. However, one of these peculiarities forms the basis of the policy. The absence of medical tests and questions is the essence of what we call guaranteed issue life insurance policy. The policy has certain limitations regarding people who buy it. The limitations are connected with the age of prospects, allowing only those between 50 and 85 to buy policy. Hardly can a different offer be found, but some companies may accept people under fifties. Premiums depend on the gender and age of a policyholder. There is actually nothing else determining premiums, as insurance company doesn't know any details about the health of policyholder. That is why it is rather obvious that the older policyholder is the higher premiums are paid. In case you prefer to pay quarterly or semi-annually, the price will be higher. In respect of payout you should know the following: guaranteed issue life insurance policy is a way to save money for funeral expenses. The way you can spent the payout is not restricted, but the main idea of the policy is to provide a certain amount to carry out funerals. Some $20,000 usually offered for such policy, sometimes less. As a rule guaranteed issue insurance policy doesn't pay out within a certain period of time i.e. if a policyholder dies within this period, insurance company will not pay the face value to the beneficiaries, but only premiums + interest. The duration of the period, known as "graded benefits" period, is up to 3 years. Overall, guaranteed issue life insurance policy is a good option for people above 70. It is a normal age nowadays; people live much longer, so there is sense in buying such policy. However, it is still important that you should calculate possible expenses and compare them with your payout. Thus you can get a clear picture whether you need this policy. Related Articles |
Types of Life Insurance
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