What Is Guaranteed Acceptance Life Insurance?

As the name implies, guaranteed life insurance is life insurance that is guaranteed no matter how old you are, what bad habits (smoking) you have or what medical history you have… everyone is accepted in to the plan.

Guaranteed life coverage is intriguing for someone who is older or for those who are in a high risk group such as those with a pre-existing health condition like cancer or diabetes, those who smoke or have some other health condition that would prevent them from getting affordable life insurance coverage.

Cons of Guaranteed Acceptance Life Insurance

As you might expect, there are a few downsides to guaranteed life insurance coverage. This is to be expected because accepting everyone in to the plans significantly increases the risk that the company is taking on and therefore they need to make up for this risk somewhere else.

Because of this risk, many companies will only let you buy so much insurance at a time… usually around $20,000 but it varies depending on the company. Many people are looking for more coverage than this so buying policies from a few different companies is an option here.

Another potential issue with guaranteed insurance coverage is that there are usually limitations that may not be worth the premium you are paying. Since many of the potential customers who buy this type of policy are in poor health or are close to death, there are usually restrictions to prevent someone who doesn’t have long to live to cash in quickly. Many companies will not guarantee full payouts until a set number of years have passed, paying out only part of the policy should the insured pass away quickly.

Possibly the biggest downside is that the terms and conditions of the insurance plans can be very confusing. I recently read a Marketwatch article that reviewed Colonial Penn life insurance policy and in it they revealed that instead of dollars the insurance was sold in “units” without much clarification of what a “unit” is. Since many of the potential customers are older and could be confused by “units” this struck me as intentionally shady… at least in my opinion.

Is It Worth The Money?

Is guaranteed life insurance worth the money? Yes and no. I would highly recommend shopping for regular life insurance coverage, with standard terms before resorting to guaranteed coverage. Much like guaranteed credit cards take advantage of people with bad credit, guaranteed life insurance doesn’t give normal insurance value to its customers because they are in a tough spot in terms of age and/or health. If you have applied to other companies and have been rejected then yes, guaranteed acceptance life insurance coverage is better than no coverage at all.

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Can we agree that health care is a costly proposition. It does not matter what generation you were raised when generation you’re living in the cost of healthcare is cost prohibitive for many people. While the government tries to figure out how they’re going to resolve that, or if they can resolve that, let’s take a look at some of the best options you can look at to get the best insurance for your money and get the help with insurance you need.

If you have a job that provides health care coverage, you are one of the fortunate ones. However, employer health care coverage often carries with it sizable deductibles and co-pays.

The best thing you can do to save costs is to know your health insurance policy coverage inside and out. This way you’re never guessing if a producer procedure for services covered, or whether there’s an extra deductible applied for it, or whether or not it should to the immersion is covered at all. Study your plan carefully, so that you know every detail. It’s only a matter of time before you have to did they whether or not they claim is paid with your insurance company. Armed with the knowledge of which are policy actually covers will help you.

You should review your coverage at least once a year. Most companies and corporations offer a choice of different companies yearly. Most people just assume that it would be best to stay with the company that they have, without looking into what other plans may offer. It is also important to check whether or not your doctors are still with the policy you intend to stay with. Doctors and healthcare professionals change their allegiance with health insurance companies frequently. These open enrollment season’s idea to check out his company thoroughly and make an informed decision.

You should think very carefully about a high deductible. Many employers now offer an option for high deductible plan. Use caution however as a big out-of-pocket expense might tempt you to skip a medical treatment when you really need it.

Everyone should take advantage of a flexible spending account if it’s available. He generally can put up to $5000 of your paying account every year, tax-free and you can spend it on a long list of health related expenses including deductibles, coinsurance, and co-pays. You may also spend from your flex account for dental care, contact lenses and eyeglasses.

If you know that you may be losing your job soon, be sure to fill out as many prescriptions as you can and consider getting a 90 day supply if that is possible. If you are planning any elective procedure schedule them as soon as possible.

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