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Guaranteed Issue Life Insurance An Expensive scam?

Guest post by: Alston Balkcom

Article Overview: Don't get scammed by buying a guaranteed issue or simplified issue final expense insurance contract. These final expense insurance policies have their place, but too many people who could qualify whole life insurance plans that are both cheaper and better overpay for guaranteed issue or simplified issue life insurance plans.

Guaranteed Issue Life Insurance An Expensive scam?



Don't get scammed by buying a guaranteed issue or simplified issue final expense insurance contract. These final expense insurance policies have their place, but too many people who could qualify whole life insurance plans that are both cheaper and better overpay for guaranteed issue or simplified issue life insurance plans.

Guaranteed issue whole life insurance plans are a good deal for only a few of us If you have a major medical condition, you may not qualify for any other kind of plan. Your health history might keep you from getting a standard life insurance plan.

However, this is not the case for most of us. This is not even true for most older Americans. Even if you have some health issues, you are likely to be approved for a standard plan.

If you take prescribed drugs for high blood pressure or bone density issues, you may feel that you won't qualify for a standard life insurance plan. Chances are this is not true.

You might be charged a higher premium than someone who is healthier, but you will probably not pay nearly as much as you would if you applied for a guaranteed issue whole life insurance contract.

Guaranteed issue or simplified issue final expense insurance contracts can cost you much, much more when compared to other contracts. There are other drawbacks. You will probably get a slower future loan value build up. Your beneficiary will not receive the full death benefit if you die in the first two or three years after your effective date.

The equity or cash value of a final expense insurance contract is not the first thing most people think about when comparing policies. Typically, people will compare the monthly costs and the death benefit. Many plans also build equity or cash value and this is an important part of many final expense insurance policies.

Even if you don't plan to use the cash it can be used to keep your plan in force during hard times. Many contracts will allow you to spend a portion of your cash value to keep the policy going when you are can't pay from your checking account.

Your loved one may not get what you expect them to get if you purchase a guaranteed issue life insurance policy. Many of these contracts are modified benefit plans. This typically means that if you die within two or three years after your plan's effective date only a fraction of the face amount will be paid. Your loved one could only receive the premiums paid plus a little interest.

The only reason to apply for a guaranteed issue or simplified issue contract is if you are convinced that you will not be approved for an underwritten life insurance plan. Before considering a contract of this type, be sure to apply to other policies to see what you are able to be approved for.

Don’t be one of the many people who will spend an arm and a leg for their life insurance policy. Taking an exam or answering a few medical questions can help you to pay much less. Even if you are denied, you can complete an application a guaranteed issue plan later so you have nothing to lose by trying to get a less expensive policy first.

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Article Tags: health insurance, life insurance, medical insurance
Referred by: http://www.searchengineworkshops.com



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