What Is Guaranteed Acceptance Life Insurance?

  1. 1313 POINTS
    Lenny Robbins
    Principal, LifeNet Insurance Solutions, Redmond, WA
    As the name implies, this type of life insurance is always available as coverage.  Although it does not take effect during the first 2 years except for accident.  If death does occur during the first 2 years, then all premiums plus interest are returned to the policy owner.  While not as economical as so-called "regular" coverage, it may be an excellent last alternative.
    Answered on June 7, 2014
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  2. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is an excellent question! This kind of policy is generally one marketed to people who can not get a policy otherwise. There are typically few if any health questions, and about the only thing you need to have to purchase it is a valid ID, and the money. These policies are riskier for the insurer, so they hedge their bet by creating a "graded" or "modified" period at the beginning of the policy where the return if you die from any reason other than strictly defined accident is a return of what you paid in, plus some interest. These policies are for smaller face values, and are more expensive also. They are a great vehicle for someone who has issues that would otherwise make them uninsurable, but not the best fit for someone in good health. Please contact me if you would like to discuss this further, I'm happy to help. Thanks for asking!
    Answered on June 7, 2014
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  3. 4249 POINTS
    Gary Lane
    President, Lane Independent Agency, Southern California
    Guaranteed acceptance in general means you do not have to take  a medical exam to qualify. There are two basic types. Individual guaranteed acceptance, the kind you may get in the mail or from an agent, is going to be for a lower death benefit, usually around $5k to $50k. It will not pay within the first two years, but only return premium plus interest. After two years, it will pay as any other policy. The other basic type is group insurance, where members of a group can qualify without a medical exam, as long as a specific number of them apply. they may be able to get higher death benefits, usually around $150k. If you want a higher benefit, you will have to take a medical exam, and quality, either way. Thank you. GARY LANE.
    Answered on June 7, 2014
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  4. 5877 POINTS
    Stan Cox II
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    Guaranteed acceptance or guaranteed Issue insurance is a policy that is guaranteed you will qualify for regardless of your health condition. You are not required to take any medical exam, but usually you will have to answer just a few basic medical history questions. These policies do NOT guaranteed you will qualify if you are past the age limit however, which is typically either 80 or 85. And there are usually some restrictions on benefit payouts within the first couple years.
    Answered on July 7, 2015
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