Guaranteed Issue Life Insurance Explained

Meet Frederick. He is interested in guaranteed issue life insurance since it does not require any medical exams for approval. Too good to be true right? Well, there is a catch. Let's find out how guaranteed issue life insurance works.
You'll get a policy from the company as long as you're in the age bracket when you apply. This is why this type of life insurance is called a guaranteed issue.
That means they guarantee acceptance. People typically have to be between the ages of 50 and 80 in order to qualify. Some companies may still offer guaranteed-issue policies to people outside of this age range, but you will have fewer options. While I have your attention, please hit that subscribe button and bell button to join our notification squad. The guaranteed issue life insurance policy doesn't require a medical exam or health questions. Your medical records and prescriptions are also not accessible to insurance companies. If you have no other option because of your health or can't afford any other option, this type of insurance might be the right choice.
Here’s the catch. You have to wait a certain amount of time before guaranteed issue life insurance is issued. Beneficiaries will not be eligible to receive the death benefit if you die during the waiting period. On average, waiting periods are two years. Others can be longer. You won't be scammed. Your insurance company will reimburse your beneficiaries should you die during the waiting period. All your insurance premiums plus interest, usually at 10% is paid to the beneficiaries. Even if it's less than you'd like, your beneficiaries will still get something.
If there was no waiting period, everyone would be able to apply for insurance on their deathbed. Therefore, applicants would be paying a few hundred dollars for bigger benefits. There is no insurer who could do this. It's a dysfunctional business model. The business model works because of the insurance companies investing the life insurance premiums they receive.
Let’s look at some limitations. Guaranteed issue policies might not be a good or cost-effective choice in the following situations. First is living for a sufficiently long time that the premiums paid exceed the death benefit. It could also be that the insured buys a guaranteed issue policy when they are eligible to buy an underwritten policy. A medically underwritten policy provides lower premiums.
There would be no waiting period for the death benefit. So, in a nutshell, people who cannot get insurance otherwise can benefit from guaranteed issue, despite these factors. If you liked this video, make sure you demolish that Subscribe button and join our notification squad by hitting that bell button.

---- VIDEO CONTENT ----
00:00 - INTRODUCTION
00:20 - AGE RANGE.
00:50 - NO MEDICAL EXAM
01:05 - WAITING PERIODS
01:40 - MAKING PROFITS
02:00 - NOT WORTH IT

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