Florida Health Insurance Terms:
What is Guaranteed Issue?":
"There are some 'short form' life insurance policies that you shouldn't confuse with guaranteed issue," says Bill Schreiner, an actuary with the American Council of Life Insurers. "For a true guaranteed issue policy, there are no medical questions — you just send your money and get insurance."
What's the catch? There are a few, says Schreiner. Most guaranteed issue life insurance policies are designed to provide for only funeral expenses, so it can be tough to find a company willing to sell a policy with a face amount of more than $15,000 to $20,000.
Also, because guaranteed issue life insurance policies do not rely on medical information to set premiums, the cost tends to be very high. Insurance companies will use medical information to offer lower rates to people, who can prove they are in good health.
With guaranteed issue life insurance policies, because there is no medical exam or underwriting, insurance companies have no information other than the applicant's age and gender on which to base the premiums.
More On Guaranteed Issue: NCPA Facts
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