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What determines the insurance prices if you opt for a guaranteed issue policy

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A guaranteed issue policy or a guaranteed acceptance policy is a type of whole insurance policy that does not require prior medical questioning or any medical records. Such policies are mainly needed for people suffering from a severe health condition, terminal illness, or undergoing a financial crunch. You can also opt for such insurance policies if you are inclined towards lower budgeted insurance.

Small and large insurance organisations provide guaranteed issue life insurances such as burial insurance with no waiting period to their clients, based on their budget and financial requirements. Gary Cubeta from Insurance for final expenses says that you have to fulfil specific eligibility criteria to qualify for these policies. It is always better to approach the insurance companies after understanding these criteria. Moreover, you have to keep in mind that every company has its special requirements to fulfil.

Meaning of guaranteed life insurance

Guaranteed life insurance or a guaranteed issue policy is a life insurance policy designed for people suffering from severe health conditions without any prior medical questioning or providing any medical records. They also do not take much time to activate, with the usual timing being 24 to 48 hours.

The entire process of applying for guaranteed life insurance such as burial insurance with no waiting period is short and brief because of the lack of lengthy questionnaires or time-consuming questioning sessions. However, the catch here is that while such insurance policies have no deliberate 'waiting period', you still have the graded benefit period to look out for. The graded benefit period is the duration during which the company does not pay you death benefits or the desired full coverage. Instead, it only repays your beneficiary all the paid premiums with a particular interest.

Factors determining the insurance costs

Various factors determine the insurance costs or premiums that you must pay to avail of the policy. The most important factor, however, is your age. The typical age-range to avail of this policy is between 50 to 80 years.

If you fall within this age bracket, you can avail all the benefits of this insurance. However, if you do not belong to this age range, other insurance policies may suit you better. However, you shall have limited options to opt for. Certain other specifications shall also apply depending upon the insurance company.

For whom are such insurance policies ideal?

The guaranteed issue policy is ideal for you in case you have cancer, AIDS, Alzheimer's disease, dementia, or other severe health conditions. You may also opt for this policy if you have a life expectancy of fewer than two years, in need of dialysis, or are waiting for an organ/tissue transplant. Moreover, if you suffer from financial issues, policies like burial insurance with no waiting period are ideal for you.

A guaranteed insurance policy or guaranteed issue policy is a type of whole insurance policy specifically established for helping people who are in dire financial conditions or have deteriorating health. You may not have a chance at availing of a conventional life insurance policy. Instead, you can avail of affordable burial insurance with no waiting period requiring no prior medical questioning. This way, you can provide some financial assistance to your loved ones after your demise.