Looking for guaranteed life insurance but can’t decide if you need a whole vs term life insurance policy? If that’s the case, you probably need to ask yourself, “what does life insurance cover?” “how much guaranteed life coverage do I need?” and “how much can I afford?”
Guaranteed life insurance can be advantageous if you have a chronic illness and want to avoid submitting a medical report to receive coverage. However, guaranteed coverage can come at a high price, especially if you aren’t familiar with companies that offer budget-friendly rates.
Fortunately, I came prepared with all the price-hacking tips you’ll need. Read on to learn the most important facts about guaranteed life insurance: what it is; if whole vs term life insurance is a better option for you; and the top 5 secrets to getting the best-guaranteed life insurance quotes available now.
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What is Guaranteed Life Insurance?
Guaranteed life insurance or guaranteed issue insurance is the only type of policy that doesn’t require a medical exam to prove your health status. Regardless of whether you apply for guaranteed whole vs term life insurance, companies won’t turn down your application—you’re technically guaranteed coverage once you register.
In fact, many companies now offer online application forms so you can get approved within a matter of days. Therefore, it’s no surprise that this policy type also has one of the highest acceptance rates among insurance providers. Since there’s no medical exam required for approval, guaranteed life insurance is usually the best policy for people within this demographic group.
On average, guaranteed life insurance policies are available for applicants aged 50 to 85. Why? Seniors are more likely to suffer from multiple underlying conditions that could disqualify them from receiving life insurance. Since there’s no medical exam, the life insurance company can’t estimate the applicant’s death risk.
As a result, guaranteed life insurance rates tend to be much higher than other policies. It’s not wise to purchase the first insurance quote you’re offered because better rates are usually available elsewhere (if you know what to search for).
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How Much Does Guaranteed Life Insurance Cost?
The cost of your guaranteed life insurance policy depends on your age, sex, the amount of coverage you want, and whether you apply for guaranteed whole vs term life insurance. Rates tend to vary across states in the United States. However, there are specific steps you can take to find the most appropriate coverage rates for your financial situation. Find out what they are below.
How to Find the Best Guaranteed Life Insurance Quotes
Most people miss out on excellent guaranteed life insurance products because they don’t shop around. Still, it’s not just about comparing prices—you need to know what to look for in each life insurance policy. I’m about to let you in on the secrets!
Here are the top five strategies you can use to find the best-guaranteed life insurance quotes on the market right now:
1. Find Out “What Does Life Insurance Cover?” with each Provider
Your life insurance policy – whether that’s guaranteed life insurance, Index Universal Life, or whole vs term life insurance – should be able to cover your family’s expenses after your death.
These may include:
- Funeral expenses (burial costs, hearse service fees, flower arrangements, etc.)
- End-of-life expenses (medical bills charged for your hospital care)
- Outstanding debt (auto loans, credit card debt, tuition, etc.)
- Everyday expenses (childcare, utilities, and groceries for a brief period)
How does guaranteed life insurance cover these costs?
When you die, your beneficiaries will receive a payout from your life insurance provider. The size of the lump sum they receive depends on the guaranteed life insurance death benefit you requested. In any case, your loved ones can use the money to pay off some or all of the expenses listed above.
Now that we’ve gotten a clear breakdown of “what does life insurance cover?” you’re probably wondering if there are incidents that your guaranteed life insurance policy won’t cover for you and your family. That’s a great question because all life insurance policies have limits, but most policyholders won’t bother to read them in the fine print (kudos to you for being thorough!)
So, what exactly doesn’t life insurance cover? You’d be surprised to know that the rules aren’t different for whole vs term life insurance.
Life insurance policies (guaranteed life insurance included) will provide coverage for most natural and accidental causes of death. However, they will not release death benefits to your loved ones if you die while committing a crime. Therefore, your beneficiaries won’t receive your life insurance payout if you succumb to injuries while robbing a bank, driving drunk, or breaking into someone’s home (you get the point, right?).
In addition, your guaranteed life insurance provider may cancel your coverage if you were dishonest on your term or permanent life insurance application. Lying on your application is insurance fraud. So, you shouldn’t lie or conceal important information in your application form.
Fraud is common in guaranteed life insurance cases because some policyholders try to hide their medical conditions to receive cheaper quotes. I do not support this practice by any means.
Although insurance fraud is criminal, some guaranteed life insurance companies have more lenient repercussions. If your life insurance provider finds out about it before you die, they may increase your premiums instead of canceling your coverage. Either way, the consequences of committing insurance fraud defeat the purpose of searching for an affordable guaranteed life insurance quote—it’s clearly not worth the risk.
Of course, we both know that illness and accidents aren’t the only causes of death. If you’d like to add more protection to your guaranteed life insurance policy, you can speak to the insurance provider about available riders. A life insurance rider is an additional feature or advantage that you can purchase for your policy. “Death by Suicide” and “Death by Risky Hobby” riders prevent your loved ones from losing the death benefit if you die by any one of those events.
Moreover, some riders like “Accelerated Death Benefit” and “Long-term Care” allow you to use death benefits while you’re still alive to cover medical expenses. Since riders come at an additional fee. So, expect your guaranteed life insurance quote to increase if you decide to purchase any of these.
2. Understand the Difference Between Guaranteed Whole vs Term Life Insurance
One of the most overlooked reasons beneficiaries don’t receive death benefits is when the guaranteed life insurance policy matures (or expires). If the policy reaches its expiration date before you die, you’ll receive the death benefit from your life insurance provider—you’re entitled to this payout as the policyholder.
Unfortunately, it means that your heirs won’t receive any coverage from the life insurance company later when you pass away. To continue your guaranteed life insurance coverage, you’ll have to purchase a maturity extension before your policy expires to prolong its duration.
Otherwise, you’d need to reapply for a guaranteed life insurance policy. The downside to reapplying is that you’re sometimes offered a more expensive life insurance quote, particularly if the policy provider realizes you withheld medical information in your previous contract.
Now, if you’re worried about losing your coverage, you should know that not all guaranteed life insurance policies expire, and this could influence your life insurance quote. One primary way of knowing if your guaranteed life insurance coverage will mature soon is by identifying whether you have whole vs term life insurance.
When comparing guaranteed whole vs term life insurance, it’s important to note that all whole life insurance policies are also permanent life insurance policies (which means they don’t expire).
With a guaranteed term life insurance or Guaranteed Level Term policy, your life insurance provider agrees to release death benefits to your heirs if you die within a specific timeframe. Term life insurance policies may last between 5 to 40 years, whereas whole life lasts from the time you purchase your policy until your death.
That’s why I consider guaranteed whole life a more secure long-term option when you analyze the benefits of whole vs term life insurance. However, it also makes it the more expensive type of guaranteed life insurance.
Another advantage of guaranteed whole vs term life insurance is that whole life policies allow you to earn more money through a separate cash savings account. Term life insurance doesn’t offer this feature. As a result, guaranteed whole life insurance may be more suitable if you want to learn how to accumulate wealth through your coverage.
So, is guaranteed whole life insurance worth it? Given its higher price tag, the answer depends on what you can afford.
Purchasing a Guaranteed Level Term policy is more strategic if you’re looking for the most affordable guaranteed life insurance quotes. Term life insurance policies that last 30 to 40 years are less likely to mature before the policyholder dies, especially if they apply earlier than age 65.
Even if they expire, most life insurance companies offer a guaranteed renewability feature that allows you to increase your years of coverage. Be sure to ask your advisor about this. Your annual premiums might increase on your extended policy, but chances are, they’ll still be cheaper than whole life insurance rates.
3. Review Each Guaranteed Life Insurance Policy’s Wait Period
When looking for the best-guaranteed life insurance quotes, you shouldn’t only ask, “what does life insurance cover?” You also need to consider how long it will take to activate your death benefits. For example, some guaranteed life insurance companies have a two year wait period before your death benefit goes into effect.
Therefore, if you die within the first two years of your contract, your beneficiaries will only receive cash to match the amount you’ve already spent on premiums. They won’t have access to your death benefits.
The longer the waiting period, the cheaper your premiums. This might sound like an advantage if you want to make low payments, but it’s not ideal. If you’re the breadwinner of your household, your family may be out of income for an extended period after you die.
Your guaranteed life insurance policy’s death benefits might be a lifesaver for them. Unfortunately, a waiting period could prevent them from accessing those essential funds.
With this in mind, I want to caution you that the best-guaranteed life insurance quotes aren’t always the cheapest. I’ll be cliche here: quality comes before quantity. It’s more beneficial to partner with a life insurance company that offers a brief waiting period (and slightly higher premiums).
Some insurance companies activate guaranteed whole life insurance benefits within a few days or weeks, but it’s rare to find a whole life policy with no waiting time. This is an important factor to consider when comparing whole vs term life insurance because Guaranteed Level Term policies don’t include waiting periods—your death benefits are available as soon as your application is approved and your first premium is paid.
4. Compare Guaranteed Life Insurance Rates Online
The most convenient way to find an affordable policy is by comparing guaranteed life insurance quotes side-by-side. Thanks to the internet, you can now compare life insurance rates through online life insurance comparison sites.
Yet, as I mentioned before, finding the best-guaranteed life insurance quotes involves much more than the value of a price tag. You might be considering whole vs term life insurance, or you may want to add policy riders to benefit your family. Online comparison sites may not give you a detailed report on these factors to help you decide.
Compare life insurance quotes here.
This brings me to my final tip….
5. Speak to a Licensed Financial Agent
From my experience, the main reason why people delay getting guaranteed life insurance is that they believe all life insurance policies are expensive. However, life insurance doesn’t have to become a major burden if you work with a licensed financial agent who knows the best rates in the industry. Our team of professionals can answer your personal questions about “what does life insurance cover?” and help you find providers who offer guaranteed life insurance policies you can afford.
Of course, everyone’s finances are different, and the price point may not be a pressing factor for you. Maybe you just need guidance on deciding between whole vs term life insurance. Both policies provide benefits, which is why many people get confused about whether they should apply for guaranteed whole vs term life insurance.
The ideal way to find which guaranteed life insurance policy is right for you is to speak with an experienced financial agent. Book a free consultation with me today to get the best-guaranteed life insurance policy for your needs and get the best rates on the market!