Agent Owner, Gilmore Insurance Services, Marysville, Washington State
It usually means you are guaranteed issue of a policy with that particular company. Guaranteed Issue tend to be very expensive insurance policies and aren't a good choice for a healthy individual as the policy pricing is set up for an unhealthy person.
The simplest rule of thumb for the purchase of insurance is the more questions asked and answered, the cheaper the rates will be. Unasked questions tend to drive up premiums.
That said, if your health is such that the possibility of going through underwriting successfully isn't great, a guaranteed issue policy may be the best thing for you. As they say "It's beats a poke in the eye with a sharp stick."
Guaranteed issue life insurance usually has a minimum age requirement (age 50 is a common one, but varies). It also has a low maximum face amount (often under $25,000). And guaranteed issue policies are generally graded during the first 2-4 years, which means that they would pay out a reduced benefit, or return all your premiums plus a little extra, if death occurred due to illness.
Sometimes, what is commonly called guaranteed issue life insurance does not actually live up to the title. E.g. There may be a clause that the applicant cannot be residing in a nursing home. So be sure to read the fine print to see if a guaranteed issue policy will work for you or your loved one.
But also keep in mind that there are many simplified issue policies available that someone might qualify for by just covering a few health questions with a knowledgeable agent.
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The simplest rule of thumb for the purchase of insurance is the more questions asked and answered, the cheaper the rates will be. Unasked questions tend to drive up premiums.
That said, if your health is such that the possibility of going through underwriting successfully isn't great, a guaranteed issue policy may be the best thing for you. As they say "It's beats a poke in the eye with a sharp stick."
Sometimes, what is commonly called guaranteed issue life insurance does not actually live up to the title. E.g. There may be a clause that the applicant cannot be residing in a nursing home. So be sure to read the fine print to see if a guaranteed issue policy will work for you or your loved one.
But also keep in mind that there are many simplified issue policies available that someone might qualify for by just covering a few health questions with a knowledgeable agent.