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As we know, life is unpredictable, and no one knows when rainy days can happen. This sort of uncertainty can make you worry about your loved one. Child education and home loans are some of the most important financial responsibilities that do not allow you to enjoy your life. Moreover, life insurance plans play an essential role in providing emergency funds if any unforeseen demise of the person is insured.
Guaranteed life insurance with no waiting period plans is the best way to shield your family against unanticipated rainy days. While it’s always a good idea to choose from a variety of plans available in the market, certain things might confuse and hinder you from buying a suitable insurance policy. So, take them wisely, and here are a couple of things you should know about guaranteed life insurance plans.
Best Age for Buying Guaranteed Life Insurance Plans
Many insurance companies set a minimum age between 40 and 50 for application and do not sell new coverage to people after 80.
Know How Much Coverage You Need
Usually, people ignore how much life insurance they need and tend to think only about how much they would need to pay off their significant debt, such as a mortgage. However, in the case of guaranteed life insurance, you have to consider the coverage point.
There are usually low coverage amounts included and often range between $10,000 and $25,000. Due to such a low amount, guaranteed life insurance with no waiting period plans are often purchased to cover some final expenses such as medical bills, funerals, and small debts.
Graded Death Benefits
Several guaranteed life insurance companies utilize graded death benefits to shield their company from purchases by several ill people.
In case you pass away within the first 2 or 3 years of the policy for any reason except accident, your beneficiary will receive a refund of the premiums you paid along with interest. Insurance companies usually pay the interest amount between 10% to 30%. However, if the death reason is an accident, then your beneficiaries can get the full coverage amount even though you’ve purchased it recently.
Case Value
A few guaranteed life insurance policies can help you build cash value, which you can easily access through a policy loan. If you’re not able to complete the loan amount and pass away, your beneficiaries’ payout will be decreased by what you owe to them. Here, the payout is referenced to the policy’s coverage amount, not the coverage amount plus cash value.
No Medical Exam Is Required
A guaranteed life insurance policy works best for seniors or people who can’t qualify for traditional life insurance or simplified whole life. You won’t be required to answer any medical question. Almost no one is turned down from getting this policy.
While buying guaranteed life insurance with no waiting period policy, you should keep certain things in mind. It is worth buying a policy if you are healthy enough to survive past the graded benefits period. This policy has its pros and cons to appeal to a specific market. You can get help from experienced agents as they can shop the market for you, and they know which life insurance companies are probably going to accept you based on your health condition.
