Typically, whenever we see the word ‘guaranteed‘ attached to something we think that it must be good. In most cases it’s true, but sometimes, such as when it’s guaranteed life insurance, there may be little need for it. How can guaranteed life insurance not be good, you’re probably wondering? There is a very good reason such a policy exists, but it just may not be the policy that every individual needs. Below is a summary of what guaranteed life insurance is and when it may and may not be necessary:
Just as the name says, a guaranteed life insurance policy is guaranteed to accept everyone and anyone who applies. No matter what your age or health history, if you apply for this type of policy, you’re going to be accepted and you won’t even have to take a medical examination. Sounds great, right? It is, but only for those that really need this type of guarantee.
You see, this policy costs much more than regular term life insurance and whole life insurance policies. You’re paying for the chance to side-step the examination and for the insurance provider to take you on no matter how healthy or old you are. While you won’t be asked any health or lifestyle questions, you also won’t receive the same number of benefits as you would with another policy and you will pay more.
This means that for the young and/or healthy, there’s really no need to pay the extra money for guaranteed coverage. If you have no pre-existing health conditions and you’re under the age of 50, you will have little trouble finding a well-priced life insurance policy that will provide you with more than adequate coverage. The instances where you may want to consider paying more for a guaranteed policy is if you have a health condition or are older and it’s more likely that some sort of health condition could be found during a medical exam.
If you’re still unsure as to whether or not you need a guaranteed life policy, or you have any other questions, contact the team of insurance experts at TermLife-Insurance.com.