Guaranteed Issue Final Expense and Burial Life Insurance - Final Expense 101

Guaranteed Issue Final Expense, Burial and Life Insurance

FINAL EXPENSE - WHAT IS IT?

  • WHOLE (PERMANENT) LIFE insurance for people over the age of 50.
  • A few companies have policies for ages 45+ (i.e. Mutual of Omaha)
  • Lower face value (lower benefits) policies designed to cover end-of-life expenses
  • Because they are for people over 50 and have lower benefits, final expense policies are designed to be affordable for any and all budgets.

There are two basic types of final expense policies;

NOTE: Some websites and people in the industry will refer to Graded Policies and/or Modified Policies as as GUARANTEED ISSUE, the majority of websites (including ours) do NOT consider Graded or Modified to be Guaranteed.

Are you considering purchasing a Guaranteed Issue Insurance policy?

Perhaps you received a postcard in the mail, saw an advertisement on TV or it was recommended by a friend. Maybe you liked the convenience of No Medical Exams

Before you make any decision at all, there is more to consider. We are glad you are visiting us and hopefully we can provide you with the knowledge and ammunition to make the best decision possible for you and your family.

NOTE: Most people who purchase guaranteed issue or acceptance or policies should not be, there are much better (LOWER COST AND BETTER COVERAGE) options available. 

Here is what you will learn about Guaranteed Issue on this page;

  • Explain EXACTLY what Guaranteed Issue is
  • The Advantages
  • The Disadvantages
  • Example of Rates from Companies that Specialize in Guaranteed Issue
  • Expose hidden information and facts that the insurance companies will NOT tell you

Guaranteed Issue Companies and Policies

Guaranteed Issue Table of Contents

  1. What Is Guaranteed Issue Life Insurance?
  2. The Nasty Truth About Guaranteed Issue
  3. Who Should Buy Guaranteed Issue?
  4. When Should NOT Buy Guaranteed Issue?
  5. Guaranteed Issue Summary & Takeaway

Guaranteed Issue Life Insurance - What Is It?

NO UNDERWRITING AT ALL -> No Medical Exams and No Medical Questions. The insurance company blindly issues the policy without knowing a single detail about your health.

GUARANTEED ISSUE LIFE INSURANCE = BLINDFOLDED BLACKJACK

Let's pretend for a minute go to a casino to play blackjack BUT you you are not allowed to look at the hole card (face down card). You have to "hit" or "stay" only based upon the face up card(s). 

Would you EVER do that? EVER?

You probably said NO, right? Well, the correct answer is ... YES ... you would do that but only if the odds were in your favor!

If you are playing straight up even money, the answer is HECK NO YOU WOULD NEVER DO THAT.

If, however, you were given a 10x payout, the answer is HECK YES YOU WOULD DO THAT!

This analogy is nearly identical to what the insurance companies are doing when they claim NO MEDICAL QUESTIONS! They are taking a blind bet on you, but guess what ... THEY ARE MAKING YOU PAY A PREMIUM FOR THAT BLIND BET. The insurance company is "the house" and we all know the house never ever loses! They might lose a deal here or there but in the long run the house will always win.

You could have any number of dire illnesses or chronic diseases, and it simply will not matter. Acceptance is always guaranteed which is why they include the word “guaranteed” in the name.

INSURANCE COMPANIES WILL CONFUSE YOU WITH DIFFERENT TERMS THAT MEAN THE SAME THING!

Some say "Potato", some say "PotAto" but in the end it's JUST A POTATO! Please, read the fine print. If you did not answer any medical questions, you have a Guaranteed Issue policy - PERIOD.

Here are all the possible synonyms for kind of policy:

  • Guaranteed life insurance
  • Guaranteed whole life insurance
  • Guaranteed issue burial insurance
  • Guaranteed issue funeral insurance
  • Guaranteed acceptance life insurance
  • Guaranteed issue final expense insurance
  • Guaranteed issue final expense life insurance
  • No questions life insurance
  • No questions burial insurance
  • No questions funeral insurance
  • No questions final expense insurance

GUARANTEED IS WHOLE LIFE INSURANCE 

Guaranteed issue is ALWAYS Whole Life, never otherwise. You will not find a guaranteed issue term life insurance plan. They simply do not exist.

Because these policies are guaranteed whole life insurance, the following will always be true. Please note that this rule applies regardless of which company you buy your policy from.

  • Payments never go up
  • Benefits never go down
  • Guaranteed for LIFE

 

If anyone tells you a guaranteed issue policy will pay out any death benefits (for non accidental death) during the first 2 years, run because you are being lied to.

YOU CAN’T BUY VERY MUCH COVERAGE

Due to the fact that these kinds of policies attract people in poor health, they become a very risky proposition for the insurance companies even though they have the two year waiting period. Ultimately, this high level of risk must be mitigated in various ways.

One of the main ways the insurers mitigate their risk with these policies is they limit the amount of coverage they offer to relatively small amounts. In general, most guaranteed issue companies won’t allow you to buy more than $25,000 in coverage.

THE NASTY TRUTH ABOUT GUARANTEE ISSUE

When you see ads online, through the mail, and on TV, they all make it seem like it's EASY, FAST, CONVENIENT and AFFORDABLE. Well it's affordable because you might get 1/2 of the total death benefit for the same rate, MAYBE.

THE DREADED AND SOMETIMES HIDDEN OR MISLEADING 2 YEAR WAITING PERIOD

No guaranteed life policy with any company will ever pay out any portion of a death benefit if you die (non-accidental) during the first two years. There is no grey area, no chance, no possibility, or any scenario where your beneficiary will receive a death benefit if you die from natural causes during the first two years.

WHAT THE ADS ON TV, DIRECT MAIL AND THE INTERNET WILL NOT SAY

The overwhelming majority of people should not be purchasing a guaranteed acceptance policy.

Sorry to say, but Guaranteed Issue features (SAFE, EASY, FAST, AFFORDABLE) come with a price attached.

These advertisements prey on middle America with an assumption that middle America is too naive or too lazy to understand or care about the details. If you are about to the plunged and purchase a Guaranteed Issue, stop and take a minute to explore the alternative(s) - SIMPLIFIED ISSUE. Qualifying for a Simplified Issue policy with underwriting will result in two HUGE benefits.

  1. You obtain a policy that fully protects you starting on day one of your policy - No 2 year waiting period!
  2. Your monthly payments will be MUCH lower - you will be eligible for the most affordable final expense policies in the market!

DON’T MAKE ANY ASSUMPTIONS ABOUT YOUR HEALTH

Life insurance companies want your business. Every carrier and company has underwriting strengths and weaknesses. Don't make any assumptions about ANY health conditions, there may (is likely) a company that will cover you with Simplified Issue. Check out our Final Expense Health Cheat Sheet to see what companies cover what conditions.

DON'T ASK -> Will they accept your health conditions?

DO ASK -> How many insurance company(s) will accept the conditions you deal with?

Our statistics show that over 90% of folks looking for a final expense policy easily qualify for a plan that asks health questions.¹

Bottom line?

Don’t assume that you don’t qualify for an underwritten plan because you probably do!

 

 

WHO SHOULD BUY GUARANTEED ISSUE?

Simple, people that do NOT qualify for Simplified Issue! These people can be terminally ill, chronically ill, critically ill or otherwise uninsurable.

In our final expense case studies, we wrote a gentleman with AIG Guaranteed Issue who has Cirrhosis of the liver, which is deemed by most/all carriers as terminal and must be written as Guaranteed. Despite having been diagnosed with 3 months to live, he quit drinking and has outlived the prediction. This is a classic example of someone who should buy Guaranteed Issue.

WHO SHOULD NOT BUY GUARANTEED ISSUE?

Simple, anyone that is not described above! This is probably 90-95% of the population, so once again, it's probably best to assume you will qualify for SIMPLIFIED ISSUE until you have absolute reason to believe you will NOT qualify.

GUARANTEED ISSUE - SUMMARY & TAKEAWAY

Before you take the plunge and purchase a Guaranteed Issue life insurance policy - STOP and take a minute to consider and evaluate your options before making any decisions. If after further consideration and evaluation you fall into one of these categories;

  • Terminally ill
  • Chronically or Critically ill

Than Guaranteed Issue might be the best choice, perhaps the only choice, for you. 

Even IF you are chronically or critically ill, there is still a good chance that you may qualify for SIMPLIFIED ISSUE.

Qualify now for Final Expense Burial Life Insurance - It's EASY, complete the form below!