Is Guaranteed Issue Life Insurance a Good Option?

We often get asked questions along the lines of “My aging parent is very ill and medical bills have drained his/her savings account, but I cannot afford to pay for the funeral if he/she should pass away.  Can I buy life insurance on my parent?”  In this scenario, we do not advise purchasing “regular” fully underwritten life insurance.  More often than not, term life insurance is going to be ideal for most people, but not in this scenario.

Why we wouldn’t recommend term insurance in this case…

Term life insurance would typically not work in this case because the coverage amount would be too small, the client would likely be uninsurable because of health issues, and the client’s age would be outside the range a life insurance company would approve coverage for.

What we would recommend…

When we get this question, we usually tell inquirers that they have two options:

  1. Take the money you would have spent each month on term insurance and instead put it into a savings account so it can start accruing interest. You can then access these funds later when in need of money for your loved one’s final expenses.
  2. Purchase a guaranteed issue life insurance policy.

What is a guaranteed issue life insurance policy?

Guaranteed issue life insurance is a type of life insurance that you cannot be denied coverage on, hence “guaranteed”.  There are a few things you should know about this type of insurance.

  1. Guaranteed issue life insurance is typically known as “last resort” life insurance. It’s meant for those who may have been denied previously and/or are not in good health.
  2. Guaranteed issue life insurance policies are designed so that surviving loved ones can pay for your final expenses, such as a funeral, burial, and medical bills.
  3. Guaranteed issue life insurance premiums will never increase.
  4. A guaranteed issue life insurance policy accumulates cash value.
  5. Guaranteed issue life insurance policies have significantly lower death benefit amounts compared to term or permanent policies.
  6. There is no medical exam or questionnaire required for guaranteed issue life insurance. The only factor that is really taken into consideration is the age of the insured.  Because of this, guaranteed issue life insurance premiums are higher per thousand than most other types of life insurance.
  7. Benefits are limited to the first two years. This is called a Graded Death Benefit period.  What this means is that if you die within two years of buying the policy for any reason other than an accident, your beneficiaries typically only receive the total amount of what you paid in premiums.  (This can vary depending on the carrier.)

So, if you’re in relatively good health, fully underwritten life insurance may be a better option for you.  However, guaranteed issue life insurance is a great option for those with a desperate need.

How much does guaranteed issue life insurance cost?

While you can get millions of dollars’ worth of term life insurance coverage, guaranteed issue life insurance coverage often caps at $50,000.  Again, its design is based around simply helping your surviving loved ones pay for your final expenses.

Quotacy works with Gerber Life to provide guaranteed issue coverage options.  Gerber’s guaranteed issue policy is available in all U.S. states except for Montana.  Take a look at the examples and table below to get an idea on what a guaranteed issue policy can cost.

Example #1

 John Smith is 55 years old and has been denied for traditional life insurance because of his Stage IV prostate cancer.  He does not want to burden his children with his final expenses so he plans on purchasing guaranteed issue life insurance.

He’s automatically approved without having to undergo a medical exam or fill out any health forms.  John obtains $20,000 in coverage and his premiums are $91.30 per month.

If John passes away within two years, Gerber Life will refund to his beneficiaries all premiums that had been paid plus 10% interest.  However, if John happens to die because of an accident unrelated to his health within those two years, his beneficiaries will receive the full $20,000 death benefit.  After two years, his beneficiaries will receive the full death benefit regardless of how he dies.

Example #2

 Jane Doe takes care of her 79-year-old mother Sally.  Sally does not have any life insurance and Jane is worried that she won’t have the funds to give her mother the funeral she deserves.  Jane decides to buy a guaranteed issue life insurance policy on Sally.

A $12,000 policy is enough for Jane to ensure she can pay for a proper funeral and burial.  Sally is approved for coverage and the policy will cost $165.70 per month.

Although this type of policy is easy to acquire, it offers less coverage and higher premiums than traditional life insurance, so explore all your options.  If you aren’t sure if guaranteed issue life insurance is the best choice for you or want more information, contact us here at Quotacy and we can help you.

Recap of Guaranteed Issue Life Insurance:

  • If you’re between 50 and 80 years old, you can be accepted for guaranteed issue coverage regardless of your health.
  • There are no medical exams to complete or health questionnaires to fill out.
  • Cash value accumulates within the policy.

Remember, term life insurance quotes are free to run on E-Exchanger.com and there is no penalty for applying.  It doesn’t hurt to apply for term life insurance, then opt for the guaranteed issue if you end up being denied.  The more options you have, the better decision you can make.

Share or Bookmark this post…

Home Insurance for Protection of Your Most Valuable Asset

Is Home, your most valuable asset? In fact, for most of us, it is. We spend a substantial part of our lifetime’s earnings on a Home. We spend some of the best moments of our lives in our homes. We take all care to ensure that our homes and possessions are protected from any damage or loss. However, mishaps still happen. We can do little about the natural disasters that can potentially cause major damage. Housebreakings are not rare despite us installing best protection equipment with burglars finding ways to outsmart the technology.

Any damage to the exterior or the interiors of our homes or its content can cause emotional and financial distress. There could be many things to fix and replace. As our homes protect us from the heat, dust, rains and many other troubles, it is only fair that we protect our homes from any damage / untoward incidence. In order to protect your home and protecting yourself against any potential losses due to any damage to your home, you need a Home Insurance.

Traditionally, Indian homeowners’ attitude towards Home Insurance has been somewhat indifferent. A Home Insurance has been considered as an avoidable expense in India till recently. However, Home Insurance in India is getting recognized as a crucial protection product after instances of natural disasters in Nepal and India, when many houses were seriously damaged. Thefts have been common for years; however stakes have gone up of late with homeowners’ preferences for high-value gadgets like LED Television Sets, Home Theatre Systems, Air Conditioners and even rare Antiques. Home Insurance plans are designed to protect the insured against a wide range of perils that put them at risk.

A standard Home Insurance not only safeguards the structure of your home but also covers all the belongings and prized possessions collected over the years. A standard Home Insurance cover gives you a chance to choose either the house structure or the household contents in a single policy.

Let’s understand in detail what a standard Home Insurance plan offers:

Fire: A house can catch fire due to many possible reasons. One may forget to switch off the stove or a spark emanating from an electrical appliance may result in something big and devastating. Short-circuits are common in rainy seasons. A Home Insurance plan offers protection against losses due to fire. It can leave a devastating effect. The property structure can become severely damaged, such that you have to rebuild it. In such a situation, a Home Insurance policy pays for the expenses incurred on repair and reconstruction work. With financial support from the Home Insurance policy, you can focus on getting the house back to its original condition.

Theft: Another problem that worries most homeowners is a possibility of theft. A burglary can result in loss of precious contents such as jewelry, documents, and electronic appliances. One can protect against such possibilities by taking optional burglary coverage. This coverage pays out in the event that the home's contents are stolen.

Storm, Flood, Inundation: With rising instances of Flood, inundation in the last few years, Home Insurance is gaining the attention of the homeowners as an important protection product. There have been a number of instances of people have become the victims of natural disasters in which their houses have been damaged to great extent.

Earthquake: One can also opt for an Earthquake coverage which offers compensation if the structure or the contents of the home are damaged due to Earthquake.

Others: One can also opt for a terrorism coverage which offers compensation if the structure or the contents of the home are damaged by acts of terrorism. Home Insurance in India is becoming important with changing dynamics of Home ownership. A house can get damaged due to so a number of external factors beyond the control of the owner. In the case of a serious damage, it may not be possible to restore everything to its original state because of the enormous expenses that it may involve. With Home Insurance, you can make a claim on the policy and recover the expenses arising from the loss.

In the event of a mishap, making a home insurance claim is not complicated. The homeowner needs to fill in the claims form and submit it with relevant documents to the insurance company. All documents supporting your claim must be provided for it to be approved. The insurance company surveyor will scrutinize the loss and the claim and arrive at a compensation based on the replacement cost.

Home insurance quote depends on various factors like if the premise to be insured is rented or owned accommodation, the Type of property (flat or individual house), the age of the property and the coverage type (the structure or the content or both). Coverage amount is the maximum limit that would be paid if some damage occurs to the house. The major factor that determines the coverage amount is reconstruction cost of the house. Reconstruction cost is ascertained by the following formula:

Total constructed area X Construction cost per square feet With a good home insurance in place, you can have complete peace of mind regarding your property investment. In events like damage to your house due to an earthquake and flood/, inundation, you can avail emergency repairs,. Interestingly, the Home Insurance premium is reasonably low in most cases so as not to put extra financial burden on you. Whether you live in a city or a small town, a Home Insurance is becoming essential. If you have invested a substantial amount of your lifetime’s earnings on your home and its contents, then not having a Home Insurance can be risky.

Share or Bookmark this post…

Be Aware Of Fraudulent Auto Warranties

Purchasing an auto warranty for a car can be risky if you do not know the rules and regulations of the warranty. It is a good idea for car owners to hire a professional car consultant who can help guide them through the entire purchasing process of an auto warranty. If the car owner makes the decision to buy the auto warranty without receiving any assistance, they are more at risk for purchasing a fraudulent warranty.

A fraudulent auto warranty refers to a warranty that comes with a lot of different features and is priced extremely well. However, the seller who provides this warranty will not actually provide the services that are mentioned in the auto warranty. In the used car market, fraudulent auto warranties are very common. Therefore, it is important for consumers who are purchasing used car warranties to proceed with caution.

Due to fraudulent auto warranties, the US administration created a law that will protect consumers. This used car warranty law is referred to as the lemon law.

 

Share or Bookmark this post…

What You Need to Know to Choose the Best Monitoring Plan

Installing a home security system is essential in order for you to protect your home, family, and valuable possessions. Having a home security system installed affords you the peace of mind you need in order to live without fear for your home’s safety.

However one of the most important things you need to consider when installing a home security system is the type of monitoring plan you wish to have. Here are a few things you should know when you’re trying to find the best monitoring plan for your home security system.

What is Monitoring?

To put it simply, monitoring refers to the way in which your home security system communicates with a device or center which monitors the information it is receiving. Essentially, a monitoring center processes the information to determine what action or steps need to be taken in the event of a security breach.

Types of Monitoring

When it comes to monitoring for home security systems there are generally two different types of monitoring methods: personal and professional. Personal monitoring is very rare and is usually carried out when you’ve purchased and installed a lower grade home security system. This type of monitoring involves all of the information from the home security system being redirected to you directly. That means you have to keep a vigilant eye on what is happening in your home in order to keep on top of things.

If your attention slips and something happens during that time, nothing can be done because you were the monitoring center so to speak. It was your responsibility to identify a threat and report it to the relevant authorities.

As you can see, this type of monitoring is very cumbersome on the homeowner and can prove to be grossly ineffective in most cases.

The other method of monitoring is professional. This means that the alarm company is the one keeping a tab on all the signals that your house is emitting. If there is a security breach or threat, the alarm company will inform the relevant authorities and help will be sent to your home right away. Alarm companies pride themselves on having fast response times which is what makes them so attractive to customers. The faster the response time, the less likely it is that you and your family will incur serious harm, damage, or losses.

Things to Keep in Mind When Looking for a Monitoring Plan

With respect to monitoring plans, they are typically divided into two broad categories: basic and advanced/interactive. The two different plans differ in how much control you are afforded. The general features of the two plans are outlined below.

Basic Monitoring Plans

If you’ve just gotten a home security system, basic monitoring packages are a great way to start out. This is especially true in today’s day and age because now, the more advanced packages require smartphone and tablet use. If you don’t have a smartphone, basic monitoring is perfect for you.

Advanced and Interactive Plans

These plans are a little bit more complex and give you the chance to be more involved with the monitoring process. If you want to be kept in the loop with everything that’s happening in and around your home, these sorts of monitoring plans keep you updated via your smartphone or tablet. You can expect to get texts and alerts as to the status of your home, remote access to various home security features, as well as access to the cameras and sensors if there are any.

What to Expect from any Monitoring Plan

Generally, all monitoring plans have certain key features. Some of these include:

  • 24/7 monitoring and surveillance of your property for everything from break-ins to the state of the environment. This means that your monitoring system is also keeping an eye out for things like excess carbon monoxide, water levels, and smoke.
  • Primary contacts – These are generally two numbers which the alarm company calls first in the event of a security breach or problem.
  • Secondary contacts – If they can’t get in touch with your primary contacts, the company will attempt to get in touch with your secondary contacts. You can give up to five numbers as secondary contacts.
  • Cellular connection – This is the means by which your alarm system forms a connection to the monitoring service. It uses cellular connections as opposed to landlines which aren’t very reliable. A landline can be cut by a burglar to try to cut you off from protection. Cellular connections don’t require wires and are therefore a more reliable way to connect to your monitoring service.

How to Choose Which Monitoring Plan is Best for you

Choosing which monitoring plan is best for you involves a consideration of your personal preferences and circumstances. For instance, are you looking to have more control over what’s happening inside your home when you’re not around or are you comfortable with giving that responsibility solely to the monitoring service?

There are certain cases and situations in which a more interactive/advanced system would be more effective. These include:

  • When your kids are at home alone
  • If you’re going on vacation and want to keep tabs on the house
  • If your elderly parents are living with you and you want to monitor them

In these cases, being able to see and know what’s happening at home while you’re away is very beneficial.

As you can see, what monitoring plan you end up choosing largely depend upon what degree of control you want over the surveillance of your home. If you’re looking to be more involved, an advanced plan is best for you; if not, you can easily settle for a basic plan.

Share or Bookmark this post…