Guaranteed acceptance life insurance policies are for those who can’t qualify for traditional life insurance or graded death benefit life insurance.
We’ve surveyed the market and will provide your 2 best options at the end of this article. We’ll also cover:
- Guaranteed Acceptance Life Insurance Basics
- Should You Buy Guaranteed Acceptance Life Insurance?
- Best Guaranteed Acceptance Life Insurance Companies
First off: Guaranteed acceptance life insurance should be your last resort.
Before you choose to pursue this type of life insurance policy, ask yourself these 2 questions:
1. Are you confident you can’t qualify for traditional coverage?
Just because you were declined by 1 company, doesn’t mean you can’t qualify with another company. Diabetes, COPD, Obese and heart issues can qualify for traditional, much more affordable coverage. Don’t default to guaranteed issue life insurance unless you have to.
2. Are you confident you can’t qualify for a no medical exam graded death benefit plan?
These policies have the same characteristics as guaranteed acceptance life insurance policies, but they ask a few VERY lenient health questions and are much less expensive.
A high-risk life insurance agency will go through these 2 options before even considering a guaranteed acceptance life insurance policy. Both of the options above will be cheaper. Complete the form on this page to speak or email with a specialist.
However, if it’s your only option, here’s how they work.
Guaranteed Acceptance Life Insurance Basics
- No exam and no health questions. Everyone qualifies IF you’re a US citizen and within the life insurance company’s age guidelines.
- 2 year waiting period. You’ll have to wait for 2 years until you receive the full death benefit. During the first 2 years, the benefit is paid out in full in the event of an accident. If non-accidental death occurs within the first 2 years, the life insurance company will return your premiums with interest.
- More Expensive. These policies are much more expensive than traditional coverage because of the risks they are taking on.
Applying for these life insurance policies is easy. The question now becomes, can you afford it and does it make sense.
Should You Buy Guaranteed Acceptance Life Insurance?
The answer is – it depends.
You should buy guaranteed acceptance life insurance if you’ve spoken to an independent agent that specializes in final expense life insurance and they found you can’t qualify for any of their traditional or graded death benefit policies.
The biggest mistake consumers make is thinking they can’t qualify for traditional, more affordable life insurance because of a health issue they have.
Keep in mind that you can still get affordable life insurance without a waiting period even if you have issues like diabetes, COPD, Parkinsons, heart issues or a history of stroke or heart attack that you’ve recovered from within the last 2 years.
You’d be surprised what some final expense life insurance companies will take.
Summary of the Pros and Cons
Again, many people should refrain from purchasing this kind of insurance policy if possible. Many applicants can often get other insurance at a lower price while avoiding a waiting period by answering some simple health questions.
With a guaranteed whole life insurance policy, you will find that the monthly payments can’t increase, the death benefits can’t decrease, the policy doesn’t expire at any age, and the policy will continue to accrue cash value that you can ultimately borrow from.
However, there is a mandatory waiting period, as well. Many companies will apply a death benefit restriction during the first few years of the policy. The length of time is typically two years but can be as most as three years.
Therefore, if you were to pass away during this waiting period, no death benefits will be paid out by the insurance company whatsoever. Instead of paying out any death benefits, they will refund the premiums that were paid on the policy. They will also add on some interest as well.
An accident is also one exception that is typically made for this kind of policy. Each guaranteed acceptance life insurance policy will still pay out the full value of the policy if the death was the result of an accident. This applies even during the initial waiting period.
You also need to educate yourself on misleading information. Some verbiage used can be confusing for some. It is important to remember that no guaranteed life insurance policy with any company will pay out even a portion of the value of the policy within the first two years. You will find that there is absolutely no gray area here and there is no possibility that this will change.
So, if you are corresponding with a company that states they will pay out death benefits for a nonaccidental death before the first two years, they are more than likely lying to you.
The Requirements of Guaranteed Acceptance Life Insurance
There aren’t many requirements when it comes to this type of insurance policy.
- State Availability. You will find that not every insurance company you come across is going to be insured in every state. So, when finding your policy, you need to make sure that it is definitely available in your current state.
- Age Limitations. Every company will also have their own age requirements and restrictions for their policies. Most guaranteed acceptance life insurance policies are not offered to those under the age of 50. They may also stop taking applicants that are over the age of 80.
- Entering into Legal Contracts. Finally, you need to have the mental capacity to enter into a legal contract. If you can’t legally consent to the policy, then they will not offer it to you. This is common with Alzheimer’s patients.
Each insurance company is going to have its own underwriting process. You will also find that the insurance industry is a competitive environment. Like it has already been said, if you don’t have to get this kind of life insurance for seniors, then you shouldn’t.
You should exhaust all your possible options for another type of life insurance that will cover long-term expenses, offer level premiums, and cover funeral costs and other final expenses.
Never assume that you won’t qualify for an underwritten plan because there is still going to be a chance that you do. It is best to exhaust all your options before considering a guaranteed acceptance life insurance policy.
When to Choose this Kind of Policy
If you find that this kind of policy is your only option due to your health or chronic illness, is the cheapest option due to your health or chronic illness, or you have a personal preference for this kind of permanent policy even though it has its own set of drawbacks, then a no health question life plan very well may be what your unique circumstances call for.
If this is the case, make sure to find a company that is reputable. To help with this, we have two options below.
Best Guaranteed Acceptance Life Insurance Companies
We work with higher risk life insurance clients every day. For those who can’t qualify for traditional coverage or a graded policy, a guaranteed acceptance life insurance policy should be considered.
We’ve done hours of research, and after helping over 100 families personally secure guaranteed acceptance life insurance, I’ve determined the 2 best-guaranteed acceptance life insurance companies when comes down to price, and I provide their contact information below. We can’t help you secure these policies, but we can give you the information to contact them directly.
HOWEVER, we found most people who have guaranteed acceptance life insurance, can qualify for better rates and coverage with a graded death benefit policy that asks typically 10-15 questions.
The #1 piece of advice we can give you is to complete the form on this page and speak (or email) with an independent life insurance agent who can let you know if you can qualify for a graded death benefit policy.
The best priced guaranteed acceptance life insurance companies on the market are:
1. AAA guaranteed issue whole life insurance
AAA has a plan for anyone between 45-85; you can qualify with no questions asked. They will give you up to $20,000 of whole life insurance coverage. Their phone number is 1-888-422-7020. Here’s a link to them with more information: AAA Guaranteed Issue Whole Life Insurance
2. Mutual of Omaha
If you’re between the aged of 45-85, you can qualify with no questions asked. They provide up to $25,000 of whole life insurance coverage. Their phone number is 1-800-556-9228. Here’s a link to them with more information: Mutual of Omaha Whole Life Guaranteed.
I would contact both of them for life insurance quotes and purchase the best one IF the independent final expense agent that reaches out to you recommends guaranteed issue life insurance.
To get in touch with a final expense agent that will try to get you a more affordable policy that pays out immediately, please complete the form on this page.
If an independent agent can’t get you traditional or graded death benefit insurance coverage (better than a guaranteed issue), they’ll likely try and offer you AIG or Gerber Life which are the most competitive guaranteed issue life insurance companies that an independent agent can offer.
Don’t get us wrong, they’re great guaranteed acceptance life insurance carriers, but you should go for the best-priced policy and AAA and Mutual of Omaha are almost always the best priced.
Take it from a high-risk life insurance agency who searched the market over and over for options – these 2 are your best bets. If we find something else, we’ll update this article.