Guaranteed Issue Life Insurance - No One is Uninsurable

For some people, shopping for life insurance is a chore that must be endured. But, for others, life insurance may seem like an unattainable goal to be desired. The people who long to be able to buy life insurance, but think they cannot are usually people who might be considered too old to be a good candidate for life insurance, or people who have preexisting medical conditions that have been rejected by other life insurance companies. But thanks to the invention of guaranteed issue life insurance, anyone can be insured and no one will have to go without the insurance that they want.

It may seem suspicious to some that companies are suddenly willing to offer insurance to people who formerly were considered at high risk for death. There are a few ways in which companies are justifying the taking of such risks. These guaranteed issue life insurance policies are typically for shorter terms, thus mitigating the insurance company's risk, and at a higher premium, thus raising the insurance company's potential for profit. Even if a policyholder does die within the term and the insurance company has to pay a death benefit, the amount of the premium is high enough to make sure that they don't lose too much money.

Guaranteed issue life insurance policies also provide lower death benefits for these high-risk policyholders. Since they don't have to pay out as much on a death benefit, it's not as big a risk for the company to take. And most of these types of policies also include graded benefits clauses, which state that, should a policyholder die within two or three years of taking out the policy, then no death benefit shall be issued. Instead, a refund of the premiums paid on the policy so far will be given to the beneficiary with interest.

However, most guaranteed issue life insurance policies also come with full accidental death coverage, so that if something unexpected happens to you, you'll still be covered for the full death benefit, even if the accident occurs within the first two to three years of your policy. These types of policies are giving hope to thousands of people who want to be able to provide some financial help to their families in the event that they should pass away. Even though these types of life insurance policies are more expensive, many people who were previously “uninsurable” are viewing them as a positive change to the insurance industry.