How to Find the Guaranteed Issue Life Insurance in 2024

Guaranteed Issue Life Insurance | Complete New 2024 Guide to Life Insurance for Final Expenses

Guaranteed Issue Life Insurance and Final Expense Life Insurance covers the final expenses of your life, just like the name of the policy implies. These expenses include funeral costs, credit card debt, medical bills, etc. The face amounts of these policies are commonly $10,000 to $25,000. These plan designs are Whole Life policies that never terminate as long as you pay your premiums. We only use the most trusted and competitive A+ rated life insurance companies. You also have the option to purchase permanent life insurance such as Universal Life. Because you are a senior citizen, you don’t have to buy Final Expense life insurance.

Conventional life insurance, such as term insurance, may also be another option depending on your needs. If you are looking for the lowest Final Expense life insurance rates, feel free to use our quote engine below. If you would like to compare Term and Universal life, you can also use our instant life insurance quote quoting system also. 

Four Main Types of Guaranteed Issue / Final Expense Life Insurance:

Level Benefits:

These are policies for applicants in good health. Level benefits mean that once the policy has been issued, the insured’s beneficiaries are eligible for the total face value immediately after the insured’s death.

 

Graded:

The insured usually has a two-year waiting period before the entire face amount can be paid to their beneficiary. If a non-accidental death occurs two years ago, the policy will only pay a percentage of the face amount. Example: If a non-accidental death happens in year one, the policy will pay 10% of the death benefit. If a non-accidental death occurs in year two, 20% of the face amount will be paid. Deaths in year three or later will trigger the policy to pay the full face value of the policy.

 

Modified:

Benefits paid to the beneficiary usually have a two-year waiting period before the entire death benefit can be paid. If a non-accidental death occurs two years ago, the policy will only pay a return of premiums plus a percentage. For example, if a non-accidental death happens in year one, the premiums will be returned, plus 10% will be paid. If non-accidental deaths occur in year two, premiums paid are returned plus 20%. Deaths in year three or later will pay the face amount of the policy.

 

Guaranteed Issue:

Policy benefits are very similar to a modified policy but more expensive because there is no health underwriting whatsoever. These policies are the way to go for people with severe health problems such as Cancer or major heart disease etc. Guaranteed issue policies typically have a two-year waiting period before the entire face amount is paid to the beneficiary. If a non-accidental death occurs two years ago, the policy will only pay a return of premiums plus a percentage.

Example: If a non-accidental death occurs in year one, all of the premiums paid will be returned plus 20%. If a non-accidental death happens in year two, all premiums paid are returned plus 20%. Deaths in year three or later will result in the policy paying out the full face value.

Keep in mind that you always have other options for life insurance than Final Expense life insurance. Final Expense plans are expensive and have very low face amounts. Therefore, purchasing Term Life or Universal Life Insurance may be a better option. 

 

In Conclusion

Guaranteed Issue and Final Expense Life Insurance can get a little confusing in their exact meaning. You can consider these as types of Sister policies that are very similar in benefits and cost. The most important concept to remember is that they are used for a person’s final expenses, and they typically have much lower face amounts than conventional Term and Universal Life policies. If you are in good health, these will not be your best choice due to their higher cost. Feel free to contact us seven days a week for all the answers to your questions with no obligation or headaches.

All the Best,
Jack Venturi