Recent statistics show that around 60 percent of people who don’t buy life insurance cite its expense, as well as the requirement of a medical team as their reasons. But considering the high-stress lifestyle as well as the plethora of factors one is vulnerable to, not having life insurance is ill-advised. For the people who find it hard to buy a whole life insurance policy, guaranteed life insurance can be one of the best options.

The first thing you need to know about a guaranteed life is that it does not require any medical examination. The policy issuers do not ask for the applicant’s medical history, no tests are performed, and the applicants can simply apply and get approved. This means one can get guaranteed life insurance within minutes as there is no underwriting needed.

The following article sheds light on guaranteed life insurance, its pros, cons, and much more:

Who can get guaranteed life insurance?
This type of life insurance is best suited for people who are not in the pink of their health. In such cases, insurers place these people in a high-risk pool which includes the elderly and those with severe health conditions. People are often confused between guaranteed issue life insurance and simplified issue life insurance. While simplified issue life insurance involves some health-related questions and can incur lesser insurance costs, general life insurance is costlier and provides health insurance without any questions.

Graded death benefit payout
A feature of guaranteed life insurance, graded death benefit lets the insurer pay only a portion of the policy if the insuree dies within two to three years of buying the insurance. This is done to avoid insurance fraud by people who buy the insurance, especially when they are aware of their terminal illness, to get a quick payout. A graded death penalty reduces the insurers’ financial risk.

Pros and cons of guaranteed life insurance
As mentioned above, the biggest advantage of buying this type of insurance is that you can get it immediately. This means you can get guaranteed life insurance within minutes as there is no underwriting or medical examination involved.

However, financial experts suggest guaranteed life insurance plans can be 100 to 200 percent costlier than simplified life insurance. It is also seen that guaranteed life insurance offers a lower payout with a death benefit as low as $20,000 in comparison to other life insurances that offer a six-figure death benefit.

Despite the difference, people still buy guaranteed life insurance as it can be helpful to pay for the funeral and other end-of-life costs.

Shopping for a guaranteed life insurance
To select the best guaranteed life insurance, make sure you compare coverage quotes from different insurance companies. The best insurance offers a good policy amount against a reasonable monthly premium. It is essential that you read about the graded death benefit and select an insurances company that offers at least 3 years of graded death benefit.

Guaranteed life insurance alternatives
If guaranteed life insurance is beyond your means, you can check other types of life insurances such as final expense which can cover for end-of-life costs including funeral and burial costs. Employer-provided group life insurance provides policies at lower rates as the company has lower risks by grouping coverage across multiple employees.