This article is going to focus on when your Arizona burial insurance policy should be guaranteed issue.
Table of Contents:
What is Burial Insurance
Burial insurance is structured as whole life insurance, also known as a “final expense policy” or “funeral policy” or even a “cremation policy.” Simply put, they are really all the same policy but have different names.
What ISN’T Burial Insurance?
You do not want your burial insurance policy to be structured as TERM. You want it to be whole life insurance, because you don’t want it to expire. The grand majority of people outlive term policies. That’s how they’re designed by the insurance companies. Therefore, you really should have a whole life policy as your burial insurance policy.
What is Guaranteed Issue Life Insurance?
Guaranteed Life insurance policies are issued ages 55-80, and do NOT ask health questions.
They are guaranteed approval, tend to cost a bit more and have a reduced payout if death occurs within the first 2 years of the policy.
The cost of these type policies, if you can afford it, are well worth it, especially when you are dealing with major health issues
When Should We Choose Guaranteed?
The time when you want to go with a guaranteed issue burial insurance policy, is going to be when you don’t qualify for life insurance policies based on your health. If you have health problems, and the life insurance company asks you about them, you need to say you have the medical condition, which is going to increase your price and likely going to negatively impact your starting date.
Concerned About the Price of your Life Insurance?
Many agencies do not have the kind of life insurance company access that we do. Typically agencies access one, or perhaps a few companies, which drastically reduces your options, and likely increases your cost, as the “shopping” process is far less extensive.
What helps you most is access to a lot of life insurance companies that all have their own products. What this gives you is access to 50 or even 100 different life insurance products, from many companies, all competing for your business.
Other times Guaranteed Life Insurance is the right fit
Another situation where you want to go with a guaranteed issue Life insurance policy is when, based on your health, you only qualify for what’s commonly called a modified whole life policy. Or they may call it return of premium whole life.
Ironically, these function exactly the same way as guaranteed issue policies. The only difference is price. Modified or R.O.P. whole life insurance policies are much more expensive than guaranteed issue whole life.
Obviously, if this is your scenario, go with guaranteed. Unfortunately, many agents who do NOT have access to affordable guaranteed life insurance, are writing modified or ROP whole life policies for their clients.
Clearly, this is not working in your best interest.
Who Can Get Guaranteed Life Insurance?
Guaranteed Life Insurance can be issued ages 55 to 80. It is approved and issued as long as you are within that age requirement. They have to approve everyone that meets their age requirement. Therefore, guaranteed issue is what you want to go with if you’re going to be hammered by any of the other companies, based on health.
Any Problems with Guaranteed Life Insurance?
Guaranteed Life Insurance underwriting requires a two year waiting period. This means, there is a reduced payout within the first two years after the policy is approved.
The way that those policies work, is if death occurs within the first two years of the policy from when it starts, the total payout will only be every premium payment that you’ve made plus 10%. This is what your beneficiaries will receive.
However, once you outlive that two year mark, it’s a full fledge, normal whole life policy that will payout 100%, thenceforth, as long as you make your premium payments, of course.
For any other needs, give us a call, or schedule a phone appointment and we’ll be happy to help you. Also feel free to pull a FREE and instant life insurance quote. There’s a guaranteed issue quote form, as well, which you can access HERE.