What Health Conditions May Be Allowed by a Guaranteed Acceptance Insurance Policy

It may be grim to reflect on, but the number of burial insurance policies taken out in 2020 was among the highest of the decade. This is mainly due to the ongoing pandemic, which puts the elderly at considerable risk and even young people with pre-existing health conditions. The problem lies with many people not qualifying for most insurance policies due to their poor health making them a high-risk candidate.

Not counting low-premium exceptions like Gerber burial insurance, most people had to deal with thorough background checks and an extensive perusal of their medical histories to get even the simplest type of life insurance. With Covid-19 bumping up the risk for many people with pre-existing conditions, people who weren’t considered high-risk before had suddenly found themselves part of this group. This is where guaranteed acceptance insurance comes into play.

Insurance Difficulties

Most life insurance policy providers tend to reject applications if the candidate’s health conditions and lifestyle indicate that they have a higher likelihood of dying early. Most of the applicants are denied the policy during the initial screening itself. Let’s take a look at a few health conditions that could land you in this group:

  • You consume alcohol
  • You consume tobacco products.
  • You consume any controlled substances.
  • You have any health conditions such as heart disease, cancer, obesity, diabetes, asthma, hypertension, or other chronic conditions.
  • You have a high-risk profession with occupational statistics that often lead to grievous injury or death.
  • You take part in high-risk activities like sky-diving and scuba-diving

Any of the above conditions means that your likelihood of death is higher than the average person, making you a risky investment for any insurance provider.

Guaranteed Acceptance Life Insurance

Guaranteed Acceptance Life Insurance policies are made for people who cannot qualify for regular life insurance for various reasons. These policies do not require you to be in proper shape to be eligible as an applicant. Most life insurance policies are not afforded to people with health conditions or people above a certain age, making them likely to die. 

But guaranteed acceptance policies are targeted at people who are between the ages of 40-85. Of course, a higher age will result in higher premiums, but this is the only drawback. According to expert insurance agents like Gary Cubeta from Insurance for final expenses, you could have any health condition, and it will not affect your eligibility to get this policy.

Why Guaranteed Issue

Let’s take an example of a relatively cheaper and cost-friendly Guaranteed issue life insurance policy to understand the benefits. The key features of the policy are:

  • The benefits do not decrease in value and stay the same.
  • The premium does not increase in value and stays the same.
  • No medical check-ups are required.
  • There will be a two-year waiting period before you can avail of benefits.

That last part is relatively common for most policy providers. Still, some providers like Gerber Burial Insurance will refund all premiums paid with an added 10% if the individual were to die before the two years are up. Furthermore, if the cause of death during the waiting period is an accident, the policyholder can receive the full benefit.

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