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[G561]Guaranteed Term Life Insurance

by Sharon Taylor, Sha

Have you ever been turned down for term life insurance coverage? Guaranteed issue term life insurance was created for those who have trouble obtaining basic term life insurance coverage. Guaranteed issue term life insurance is also known as a ?simplified issue policy.? You are automatically accepted for coverage without being required to submit to a medical exam. In exchange for guaranteed coverage, you will be charged a higher term life insurance premium. The higher premiums are a fair trade for insurance carriers taking a larger risk covering people without knowing their full medical histories. Purchasing a guaranteed issue term life insurance policy is ideal for people who were born with or have developed chronic medical problems.

The Inner Workings of Guaranteed Coverage

Guaranteed term life insurance coverage works a little differently than buying a straight term life insurance policy. While basic policies allow you to choose the period for which you would like to be covered, guaranteed policies are issued at five and 20 year periods.

If you initially buy the five year term, you may renew every five years after that until the age of 80. At age 80 your policy automatically becomes exchangeable for a permanent life insurance policy. You are still automatically covered upon transfer to your new policy and still are not be required to undergo a medical exam. Your premiums are also guaranteed to remain level throughout the duration of your policy unless term life insurance rates increase across the board for everyone in your age range and state. Renewable term life insurance premiums are based on your current age. Get instant term life insurance rates by visiting http://www.equote.com/li/termlifeinsurance-quote.html.

If you choose to purchase the 20 year term, your monthly rates will stay the same for the full term of your policy regardless of any rate increases. Upon completion of the first 20 years you have the option of purchasing an additional 20 year guaranteed issue term life policy. Again, no medical exam is required nor will you be subjected to any health questionnaires. Some insurance carriers offer the option to convert a 20 year term policy into permanent life insurance coverage after the first 20 year period is over.

Note: the face values you may purchase for a guaranteed term life insurance policy are limited. The coverage amounts start at $5,000.00 and are sold in increments of additional $5,000.00 up to a maximum of $25,000.00. The face values do not decrease with age or with a decline in health status. To learn more about term life insurance go to http://www.equote.com/li/termlifeinsurance.html.

Other Benefits to Owning a Guaranteed Issue Term Life Insurance:

1. It cannot be canceled in case you develop a terminal illness.

2.You can activate an accelerated death benefit in case of terminal illness; giving you needed cash to offset medical bills or special needs assistance.

3.Your coverage is guaranteed to stay active for the whole term of your coverage. If you purchased the 20 year term, coverage would end if your benefits were accelerated.

4.You have the standard 30-day money back guarantee on the policy. If you decide that the guaranteed issue term life insurance policy is not for you, you may request a refund of premiums paid to date -- no questions asked.

Guaranteed term life insurance. One of the more loosely used terms when selling most any product is the word "guaranteed". Sometimes there is a measure of validity to it, sometimes not. Fortunately for the life insurance buyer the phrase "guaranteed term life insurance" is for real. When a life insurance company says that certain values are guaranteed they certainly are...

A life insurance company depends a great deal on reputation and as a result they try to write language in their policies that will stand up to any type of legal scrutiny.

Some of the provisions included in your guaranteed term life insurance policy are as follows:

1) A guaranteed level or decreasing death benefit. This depends on the type of policy chosen.

2) Guaranteed payment upon death, free of income taxes. As long as the law remains as it is this is one of the more attractive benefits of the so called "guaranteed term life insurance policies".

3) A guaranteed premium for a specific period of time. Some premiums increase after a certain number of years but even the increase is guaranteed.

4) Your term life insurance policy also guarantees that you can reinstate it should it end up in a state of lapse because of nonpayment of premiums. If your health changes you may need to prove insurability all over again. The policy must be reinstated within a certain period of time as stated in the contract itself.

5) Guaranteed term life insurance policies also cannot be taken away from you as long as you pay the premiums. If you own a 10 year term policy it can only be terminated by you within the 10 year period. The insurance company cannot terminate it.

6) Your guaranteed term life insurance policy assures you that if you should die by suicide within a certain number of years, usually two, the proceeds of the policy will be limited to the premiums paid plus interest. After the 2 year period if you should die a suicide the full death benefit will be paid. They force anyone thinking of this to wait at least 2 years. The result is that a person thinking of suicide usually changes his or her mind by that time.

7) If you should elect that your family receive an income instead of a lump sum your life insurance policy can also guarantee this income for life or for a specific period of time.

8) On the more personal side your life insurance policy can guarantee that your loved ones will always have food to eat, a roof over their heads and clothing to wear. The fact is that your term life insurance policy can guarantee that the lifestyles of the ones you leave behind will change very little, if any at all. This is the true power of your guaranteed term life insurance policy.

9) The businessman can be certain that if a key employee died suddenly the company could go on with their daily business without missing a beat. Your guaranteed term life insurance policy would be used as a kind of buffer while the company readjusts.

10) If a partner or stock holder of a business should die your life insurance policy can be used to provide sufficient cash to buy out the stock, or shares, from the survivors of the deceased. The business will go on and everyone will be aptly compensated.

Your guaranteed term life insurance policy can be an awesome tool. If you own such a policy, for the right amount, you can relax.

Take a look at how some guaranteed term life insurance policies work:
http://www.lifeinsurancehub.net/termlifeinsurancequotes.html

Article Source : Pg. 104

About Author

Both Sharon Taylor & Donald Lusan are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Sharon Taylor has sinced written about articles on various topics from Dental Practice, Finances and Family Concerns. Sharon Taylor writes informative articles for , a premier Internet resource for term life insurance, no-obligation quotes, and other helpful insurance res. Sharon Taylor's top article generates over 33100 views. to your Favourites.

Donald Lusan has sinced written about articles on various topics from Finances, insurance agents and Finances. . Donald Lusan's top article generates over 40500 views. to your Favourites.