Guaranteed Life Insurance
The phrase “guaranteed life insurance” is used to describe many different types of life insurance policies. Whole life insurance is guaranteed to provide permanent life insurance protection with a cash value that has a guaranteed rate of return. Guaranteed whole life insurance provides fixed premium rates and a fixed death benefit which remain the same for the life of the insured person, and guaranteed issue life insurance cannot be canceled by the insurance company unless the policyholder fails to make premium payments.
Guaranteed Acceptance Life Insurance
Guaranteed acceptance life insurance usually refers to a term life insurance policy with low death benefit limits, which is primarily designed to provide for final expenses. Guaranteed acceptance life insurance may also be referred to as final expense life insurance. Some guaranteed acceptance life policies have an open (unspecified) term and remain in effect as long as the premiums are paid. Unlike whole life insurance, these term life insurance policies do not have a cash value and cannot be used for investment purposes. Regular premium payments must be paid or the policy will lapse.
Single Premium Life Insurance
Single premium life insurance is a whole life policy where all the premiums are paid in a single lump sum which makes up the cash value of the policy. Once in force, these policies cannot be canceled by the insurer unless all the cash value of the policy is withdrawn. Single premium life insurance provides guaranteed permanent life insurance protection for the insured person even if he or she lives to be over 100 years old. This type of guaranteed life insurance is most often used in estate planning.
All Life Insurance Policies Have Guarantees
Life insurance policies are legal contracts that guarantee the insurance company will honor certain obligations for a consideration (premium) paid by the policyholder. Payment of the death benefit is guaranteed under whole life insurance policies and guaranteed under term life policies as long as the insured dies within the policy term. Acceptance of the application is not guaranteed by most insurers and applicants can be denied coverage if they do not meet eligibility requirements set by the insurance company.
Restrictions of Guaranteed Acceptance Life Insurance
Guaranteed acceptance life insurance is primarily intended for individuals who cannot meet eligibility requirements for other life insurance policies due to age, chronic health problems or pre-existing conditions. The death benefit may be limited to as little as $15,000. Some life insurance policies limit the payment of the death benefit for the first 2 years after the policy is issued, and survivors may only receive a refund of premium payments if the insured person dies within that 2 year period. While everyone who applies may be guaranteed life insurance, some policyholders may be unable to collect benefits.
Life Insurance Quotes
Guaranteed life insurance is a meaningless phrase unless it is used in a particular context. Under state and federal laws and regulations, all insurance policies must offer certain guarantees to policyholders. Guaranteed life insurance most often refers to guaranteed acceptance life insurance or even guaranteed issue life insurance, but it may also be used to describe certain conditions contained in whole or term life insurance policies.
If you are interested in a particular life insurance policy, consider getting and comparing life insurance quotes online to find the best coverage and rates for your needs. Because guaranteed life insurance may have limitations on the amount of death benefit that can be purchased, consumers will find it helpful to compare life insurance rates and companies before buying a whole life policy. Enter your zip code now to begin an online quote and find the best, cheap whole life insurance.
