What is Guranteed Issue/Acceptance?

Let’s talk about Guaranteed acceptance and what does it really mean.  You are sitting there watching your morning or afternoon show and you are interrupted by a voice on the TV or radio that may say something along the lines of…”Have you’ve been turned down for Life Insurance Recently”? or “Did you hear about the neighbors down the street who are struggling after the loss of a loved one”?  “Do you know the average cost of a funeral is over…?” These are just a few of the questions that arise when consumers see these commercials just to get your attention.

You see marketing companies do a fantastic job of gaining eyeballs and piercing the emotional side of consumers. Though they are not all bad because they have to find a way to get you to respond and react;  whether that be through direct mail, telephone solicitations or some form of social media. Companies now have to go where the people are. Now, let’s take a little dive in the inner workings of the Guaranteed Issue or Acceptance type policies. Insurance companies know that there is a segment of the population that maybe without coverage or have been declined coverage and in order for them to see if you are a fit they then send out all types of advertisements and product brochures.

Guaranteed issue in the simplest form is a formal promise or assurance as long as specific requirements are met. In other words in the insurance world, the contracts states that you are guaranteed something in exchange for something as long as you meet the obligation. Should you default on that agreement and or obligation then you are subject to lose the benefit. Once these companies advertise their product consumers have to be savvy enough to read the provisions of that policy or agreement. Guaranteed Acceptance or Guaranteed Issue is a type of Whole Life Insurance policy that requires no medical exam, requires a simplified application and only medical underwriting questions are to be answered.

These types of policies on average have a lower face amounts ranging between (1k-25k) in death benefit. Policies like these are designed for people who are between the ages of 50-85 who probably used to have coverage or never had coverage at all. They have significant health issues which may not qualify them for a traditional term or whole life policy.  These may include but not limited to: Aids/HIV, Alzheimer’s, Dementia, Breathing problems & Psychiatric problems. Carriers who offer such policies are Gerber, AIG, United Home Life and Royal Neighbors and United of Omaha just to name a few. These types of policies maybe a good fit for them.

At Ron L. Reed and Associates, our mission is simple, “To be Clear, Concise and Conversational Our values are People, Respect, Opportunity, Passion, Excellence and Loyalty.” Give us a call or get an instant life insurance quote by filling out the form to the right.