In reality, there is always an appropriate life insurance policy for just about everyone. Even senior citizens who have poor health or who have a terminal illness can possibly get the insurance that will fit their needs and preferences. The best product for them is senior life insurance with no waiting period.
This type of life insurance is unique because anyone can never be rejected to own policy for whatever reason, which would be impossible with any other types of life or even term insurance. Such a policy can instantly be granted to anyone who applies for it, just as long as they agree to the terms and they fully understand what they are getting into.
“The Policy is Known as Guaranteed Acceptance”
No medical examination nor any questionnaire pertaining to health is required to qualify for a guaranteed acceptance policy. Thus, even a person with a debilitating medical condition could possibly buy and own a policy.
However, the major downside of this product is that it is the most expensive type of life insurance policy available in the market. This is why it is not recommended for the people who can qualify to buy regular types of whole or term insurance policies (although they can still opt to get this).
Understanding the Waiting Period
In comparison, most other life insurance products underline a pre-set period of about two years (some even extend this to up to four years). The idea is to discourage people with terminal illnesses or those who expect to pass away within the short term from buying such policies.
That is because in case death comes before that prescribed period, the beneficiaries could only claim the sum of all premiums so far paid or just a percentage of the agreed benefits as stipulated in the insurance contract.
The benefits of the policy would be available in full immediately after the first payment is transacted. This is an obvious risk for insurers that justify the hefty amounts set as premiums.
There is no more need for a policy owner to wait a prescribed period of about two years (as in the case of typical life insurance products) for them to be entitled to the full benefits of his/her policy.
Who Needs This Type of Policy?
There are other specific cases when such an insurance product is recommended to a person
First, a person with a critical illness (or one who could possibly pass away anytime soon) should consider this policy. If the patient is very concerned about the consequent financial instability of his/her family, it is still never too late to get the protection of insurance against life’s uncertainties. Such policyholders could also opt to pay premiums in one or two installments only.
For Elderly People
Second, the insurance policy is best for elderly people who are getting insurance to meet their possible and anticipated burial expenses. Their age and failing health conditions could render them unsure about their own life expectancy.
This policy could help make sure that their beloved ones would not be burdened with their own final expenses when the inevitable comes. The full amount of benefits could also cover their final medical bills, any pending debts or payables, or even their hefty estate taxes.
Any person who is currently suffering from a chronic illness is also a good candidate for this type of insurance. Take note that chronic illnesses may not always be life-threatening.
In fact, some of those could even be treatable. If such a medical condition gives them a hard time to buy a usual life insurance that requires a medical exam, then this policy that waives such a requirement is the best alternative option.
Don’t Like Medical Tests
Lastly, this type of life insurance is for all people who dislike the idea of undergoing a medical exam to buy a policy. If you want to opt-out of the medical tests and don’t want to wait for the benefits, then this policy is for you.
Setbacks of This Policy – Must Consider
As already mentioned, there are significant drawbacks when getting a guaranteed acceptance life insurance with no waiting period. Those could be summed up in two: costly premiums and limited coverage.
Policyholders must pay extra and the cost difference, when compared to other types of life insurance products, could be quite huge. To begin with, any insurance without a medical exam requirement is already costly.
Add to that factor the absence of a prescribed waiting period and you would have to shoulder your life insurance very dearly. But this is very logical and justifiable given the risks on the part of the insurer and the benefits on the side of the insured.
Nevertheless, the coverage with the amount of the benefit that could be possibly availed from the policy could be considered limited and less. The total benefits could still be less compared to typical life insurance products but in most cases, those could still be considered significant given all outstanding factors that make the policy unique.
Eligibility and Procedure
Anyone is eligible to apply for and buy the plan. However, it is recommended for seniors over 75 with a bad health condition. Whatever the age or health condition, this policy would be applicable to everyone who thinks it is already too late to buy other types of life insurance products.
Moreover, the process of availing this type of insurance is also very simple. Just like in other types of insurance, you need to first fill up an application form from your chosen insurer. For your utmost convenience, you could also opt to complete an online application or do the transaction over the phone.
Be sure to provide accurate data like your full name, residential address, the names of your nominees or beneficiaries, bank accounts, and the likes.
Must Read: Life Insurance for Dummies
Discuss with Insurer
During the application process, you can discuss the policy terms and rates of premiums with your agent. Take note of all the terms and conditions coming with the policy and make sure you agree to each provision before finally closing a deal to purchase the policy.
In case there is a stipulation in the contract that you do not fully agree with or you want to customize, immediately ask the agent for some adjustments.
Upon getting the policy instructions, which you can receive through mail or email, you would be asked to make the first premium payment. The policy takes full effect once you complete that transaction.
Tips When Getting Senior Life Insurance with No Waiting Period
Furthermore, there are still some tips you could observe that will make your purchase for this type of life insurance a breeze.
First, deal with the best and most reliable agent—the professional who would give guidance to you every step of the way.
It is important to work with one whom you can fully trust since this type of insurance could be considered as a very significant investment.
Also, go with an agent who could provide you with more viable and logical options and whom you think would not just go after commissioning the transaction.
Second, choose a policy with premiums that you could comfortably pay. The affordability of the life insurance policy will always matter even if you are buying the most expensive type of life insurance available.
If the cost would affect your personal finance significantly, you could negotiate for possible adjustments in terms or you could simply consider counterpart policies from other insurers, which could possibly be offering fewer premiums with similar benefits. Take advantage of the competition in the industry.
Third, haggle for additional benefits. If the policy you are buying comes with a minimal waiting period (just a few weeks or months), why not try to have it totally waived?
Study the policy very carefully and discuss with your agent some areas where you could make adjustments or maximize benefits without increasing your premiums. You would be surprised how much add-ons you could possibly negotiate if you are just strategic and persistent.
Fourth, stick with only your most trusted insurance brands. Trusted companies are those that are not expected to go berserk and those that have been noted for their very strong financial roots.
Also, check the insurer’s latest financial standing as well as its customer service reputation as you surely would not want to experience any hassle with their representatives in the future. You may seek recommendations or reviews from trusted friends or relatives.
Lastly, not all life insurance companies are offering this type of insurance. This is why it would be best to deal with the most reliable agents, who could be of help as you search for and buy the best deals for senior life insurance with no waiting period.