Don’t fall for mail order offers for guaranteed issue life insurance or guaranteed issue life insurance. Better options are out there. You can potentially save thousands on premium or get twice as much coverage with another carrier.
I received the other day a mail solicitation from United of Omaha Life Insurance Company for guaranteed acceptance life insurance. This is also called guaranteed issue life insurance or graded benefit life insurance. They say “You Cannot Be Turned Down.” They offered coverage choices from $10,000 to $3,000.
Wait. This is last resort life insurance. Don’t even consider this until you’re sure you can’t get something better. Just to give you an idea, a 65 year old woman, preferred non smoker rate, can get $25,000 of guaranteed universal life, fixed rate to age 110, with Genworth for less than $10,000 whole life with a 2 year waiting period with United of Omaha for graded benefit whole life insurance.
Take these steps when shopping for a small final expense life insurance policy.
#1 Choice For excellent, good, average, or even poor health
Fully underwritten life insurance. Full and immediate benefit. Applications require a blood test and short paramedical exam. Carriers generally request your medical records, all at no charge to you. This way life underwriters can gage your risk classification and make you an offer for coverage. This will save you lots money over a no physical exam policy. Genworth and North American offer lifetime guaranteed permanent coverage, called no lapse universal life, starting at a $25,000 benefit, and multiple carriers, including Lincoln National and Aviva, offer coverage of $100,000 and more for seniors. Unless you’re in really, really poor health, try this first. There is no cost to you to apply, and the worst they can do is offer you a higher rate or turn you down.
Plan B: 2 years after any major health problem, or with multiple serious health problems
If your health is marginal, or you want a smaller less expensive policy than $25,000 with Genworth or North American, the next step is simplified issue whole life. It has a full and immediate benefit. There is no physical exam. There are many, many carriers that want your business. Comparison quote with an independent broker. AARP offers this type of product but ask yourself, since both AARP and New York Life draw a profit from the policy, won’t going to directly to one carrier be less expensive? Here are some final expense simplified issue whole life carriers:
- Liberty Bankers Life
- Settlers Life
- Transamerica
- Foresters
- Royal Neighbors
- Columbian Life
- Philadelphia American
- American Continental
Plan C: Major health problems but not terminal
Graded Benefit Life Insurance If your health is very poor, coverage is offered with a 2 or 3 year waiting period for full benefit. More expensive
Plan D: Terminal health, or nearly terminal health
Guaranteed Issue Life Insurance No medical questions. Guaranteed approval. 2 or 3 year waiting period. Most Expensive.
Please contact me for a free and confidential quote.
Licensed Agent: Sean Drummey
phone: (910) 328-0447
email: spdrummey@gmail.com
