Should You Choose a Guaranteed Acceptance Policy?

Life is very unpredictable and comes with no guarantees. This is why there are mechanisms to prepare and compensate for such unwanted eventualities. Insurance is by far the most popular of these measures. It helps put away some money when you can so you can have it when you can’t.

Death is an event that is guaranteed in life, but everything surrounding it lies in a pool of unpredictability. These include expenses for healthcare, hospice, funeral, debts, etc. Final expense/ burial insurance seeks to help with that unpredictability, especially with its guaranteed acceptance feature as offered by providers.

Is A Guaranteed Acceptance Policy Right For You?

In a market with many insurance options, such a type of insurance policy might seem unwarranted. But, Gary P. Cubeta of Insurance for Final Expenses points out that guaranteed acceptance policies such as https://insuranceforfinalexpense.com/gerber-life-burial-insurance-review/ have their benefits in many circumstances. Read on to know if they will fit your needs so that you too can benefit from them.

What Exactly Is Guaranteed Acceptance?

Typically, an insurance policy is offered to a customer after a vetting process in which the person’s health condition is duly noted. Should that person’s health status fall short of the policy’s required conditions, it will either be denied outright or have specific provisions being cut-off or reduced before approval.

Guaranteed Acceptance means as a principle, any person who applies for a policy will get it. This happens without subjecting the person to any medical test. While some providers will have other criteria like strict adherence to medical questionnaires, you can still get a policy without hassles.

How Does It Compare To Other Options?

One of the main advantages of Guaranteed Acceptance plans is that they come with lifetime coverage. This is in stark contrast to term life insurance plans, which stop coverage after the deadline. Other whole life plans also come with other riders on term limits, which might render them useless when needed.

The other differences are as follows:

  • Fixed Premiums and Payouts: Once fixed, the plan’s premium amount will not change under any circumstance. The same applies to the final payout amount.
  • Lower Costs and Payouts: The final payout amounts are much lower than those of other insurance plans, usually in the range of $25,000. The premium costs are lower too, which again depends on certain conditions.
  • Waiting Period: There’s generally a 24-month standard waiting period before the policy applies in full. If death occurs in this period, only a partial sum or no sum will be paid out depending on the provider.
  • Flexibility: Final expense insurances are generally guaranteed acceptance ones. The money gained from them can be used not just for funeral expenses but for clearing any dues or general expenses.

Who Is It For Exactly?

This policy is for those who can do with low coverage, need low premiums, and have medical conditions that render them unfit for getting other types of policies. It is generally targeted at seniors on the lower to mid-side of the economic spectrum, though policies for the rich are also available.

If you’re worried about your kin being unable to bear the financial burdens that you might leave behind, including funeral costs, guaranteed acceptance policies are a lifeline for you.