A guaranteed acceptance plan or guaranteed issue life insurance is a scheme that comes under the ambit of whole life insurance. Such policies are specifically designed for people suffering from a serious health condition or having a minimal life expectancy. Such people do not qualify for conventional life insurance plans because of their poor medical records. Thus, guaranteed issue plans provide some respite to you while supporting your family after you pass away.
As per industrial experts like Gary P. Cubeta, policies such as Colonial Penn, 9.95 life insurance are easy to avail of and convenient if you are suffering from a financial crunch. Although it may not benefit you as much as full-fledged life insurance does, something is always better than nothing. Here are the questions that you need to ask before availing of the plan.
What is a Guaranteed Acceptance Plan?
A guaranteed life insurance plan, in simple terms, is a type of life insurance policy that does not require your medical records. You are under no pressure to answer any medical questions or provide past health records. This makes the insurance policy convenient, simple, and easy to purchase. Companies like Insurance for final expenses are ready to avail you of the life insurance policy without any questions asked.
The insurance policy usually pays $2000 to $2,500 as a death benefit to your heirs or beneficiaries. They also have a fixed waiting period during which the insurance company does not pay any death benefits. However, if you pass away during the waiting period, your family shall only receive the premiums paid along with 10% interest.
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A guaranteed acceptance plan like Colonial Penn, 9.95 life insurance, has higher premiums than death benefits. This is because the clients purchasing these policies are in poor health.
What are the Eligibility Criteria of Acceptance Plan Work?
The plan gets its name from the fact that the insurance company guarantees you about issuing a policy if you belong to the age-range that they have specified. The age range is usually 50 to 80 years, and if you belong outside of this range, your options become limited.
The age conditions combined with lack of medical records makes this a perfect policy for people having a life expectancy of fewer than two years, in need of organ/tissue transplant, suffering from cancer, AIDS, dementia, Alzheimer’s, etc., requiring dialysis, suffering from a chronic illness and using a wheelchair, etc.
You must know the eligibility criteria to see whether you fit the bill or not. Companies also have certain other specifications, which you must ask before availing of the policy.
Is There Any Catch in the Policy?
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The guaranteed insurance policy has a waiting period after you avail it. However, if you pass away during the waiting period, your beneficiaries shall only receive the premiums along with some interest. They shall not receive any death benefits, and the received amount shall be less than what you previously planned. Therefore, you must enquire about the duration of the waiting period and decide if it’s feasible for you before making the final decision.
The guaranteed life insurance such as Colonial Penn 9.95 life insurance is an essential type of whole life insurance for people with deteriorating health. Irrespective of the small amount, it gives you a chance to financially support your family and help them bear the funeral expenses after you pass away.