What Is Guaranteed Life Insurance?

Posted in Life Insurance

March 3rd, 2009

Getting life insurance is something everyone should think about doing, but it will be harder for some people than others. Why? Because they may be sick, or have some sort of hereditary disease that almost all insurance companies will refuse to cover, some people may be denied coverage altogether. People with preexisting conditions such as multiple sclerosis, for example, will most likely be turned down for life insurance everywhere they go. In these circumstances, they will most likely have to seek out what’s called guaranteed life insurance. Just as its name indicates, guaranteed life insurance is guaranteed, meaning practically anyone can get it.

Guaranteed life insurance charges a very high monthly premium. In addition, guaranteed life insurance usually is defined by graded benefits. Graded benefits are benefits which are given out only after a certain period of time. For example, if a woman gets guaranteed life insurance and then dies of cancer in her first year of coverage, her beneficiaries will only get part of her death benefits, or none at all. If she dies after two years of coverage, they will get more, or all of the benefits as described in the guaranteed life insurance policy. Finally, guaranteed life insurance policies usually don’t pay out a lot of money – even if the woman in the example dies after two years of coverage, the full benefits to her beneficiaries will probably not be more than $50,000.

To learn more about guaranteed life insurance and whether it’s the right kind of coverage for you, speak to a life insurance expert. He or she will walk you through the details of guaranteed life insurance, and explain to you just exactly how it works.