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What is Guaranteed Life Insurability?

While most experts agree that the best time to take out a life insurance policy is when you’re young, that doesn’t always happen. When you’re young and in good health, you can take out an affordable life insurance policy and add an insurability rider – and then never worry about not being covered, no matter how your health changes, as long as you paid the premiums.

But those who didn’t follow that path still have the option of taking out a guaranteed life insurance policy. While they will pay higher premiums, they won’t have to sit for a medical exam and are guaranteed approval.

Want to know more about how to guarantee that you leave something behind for your heirs even if you’re advanced in age or in poor health? Want to learn what guaranteed life insurance is? Here’s what you need to know.

What Is Life Insurance?

Life insurance is a contract between a life insurance company, called the insurer, and the policyholder. The contract states that if the policyholder pays their premiums, the insurer will pay a death benefit to their beneficiary when they pass.

What’s the Meaning of Insurability?

Life insurance companies use underwriters to determine whether or not to issue a life insurance policy to an applicant. Typically, an insurer will ask the applicant to sit for a medical exam, undergo a financial review, and answer a lot of health questions so the insurer can gather enough information to decide whether or not to issue the life insurance policy.

Applicants are placed into categories that determine whether or not they are insurable. This is called insurability. For instance, if someone has end-stage cancer, they will be deemed uninsurable by most insurance companies.

Is Life Insurance Guaranteed?

Life insurance is not guaranteed in most instances. If an applicant falls outside of the underwriter’s guidelines, they will be denied an insurance policy. Some insurers, like the ones who provide guaranteed issue life insurance, which is a form of guaranteed whole life insurance, have much less stringent guidelines.

What Is a Guaranteed Insurability Policy?

A guaranteed insurability policy is a policy that someone can get even if they have been diagnosed with a life-threatening disease. The insurer asks no medical questions and does not require an exam. With this type of policy, you can have a large death benefit, but the premiums will be quite high. This type of policy, referred to as a last-chance policy, is best for people who want a life insurance policy but have no other options. A better choice would be a burial or final expense insurance policy.

What Is a Guaranteed Insurability Benefit Rider?

A guaranteed insurability benefit policy rider is an add-on to a life insurance policy that guarantees the policyholder will be insured even if they develop a serious illness while covered by a life insurance policy. If a young person took out an insurance policy and added this type of rider, they would still be insured even if they developed cancer or serious heart disease.

At What Age Does a Guaranteed Insurability Benefit End?

People who have guaranteed insurability riders on their insurance policies typically lose the ability to increase their death benefit at the age of 40. But not all insurance companies use the same guidelines, so some may allow benefit increases beyond this age.

Does Lincoln Heritage Offer Guaranteed Insurability?

Lincoln Heritage is an insurance company that caters to people who did not purchase life insurance when they were younger, and now that they are getting older, they are worried that they will leave their heirs in financial difficulty. They don’t want those they leave behind to have to pay for their final expenses or burial.

Lincoln Heritage offers guaranteed insurability in the form of no medical exam life insurance. This whole life policy has lower death benefits, typically from $5,000 to $20,000, and it covers people from age 50 to 85. With a few exceptions, applicants are guaranteed that they will receive a policy when applying for this type of burial and funeral insurance.

You will pay more for a guaranteed insurance policy because the insurer isn’t asking you any health questions or requiring a medical exam. To get an idea of what the premiums are for no medical exam final expense insurance, please refer to the charts below.

Monthly Premium Rates for Men*

$5,000 Death Benefit
AgeDetermined 'In Good Health' by InsurerNo Health Questions Asked
50$16$20
55$19$24
60$23$29
65$29$35
70$38$44
75$51$63
80$65$82

* Estimated rates do not reflect the rates of any particular life insurance company.

$10,000 Death Benefit
AgeDetermined 'In Good Health' by InsurerNo Health Questions Asked
50$30$40
55$35$46
60$43$57
65$56$68
70$74$88
75$100$125
80$126$162

* Estimated rates do not reflect the rates of any particular life insurance company.

Monthly Premium Rates for Women*

$5,000 Death Benefit
AgeDetermined 'In Good Health' by InsurerNo Health Questions Asked
50$14$15
55$16$18
60$18$24
65$22$28
70$28$35
75$38$46
80$48$64

* Estimated rates do not reflect the rates of any particular life insurance company.

$10,000 Death Benefit
AgeDetermined ‘In Good Health’by InsurerNo Health Questions Asked
50$25$28
55$28$36
60$33$45
65$41$55
70$53$69
75$72$90
80$93$126

* Estimated rates do not reflect the rates of any particular life insurance company.

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