Features of Guaranteed Acceptance Life Insurance
As the term suggests, this type of insurance policies carry with it the guarantee of approval by the insurance company. Hence it is also called guaranteed acceptance life insurance. Generally it is preferred by individuals in their advanced years of life. This is like an additional supplemental insurance to cover the unforeseen medical costs and repay debts during old age. The benefits can also be used to cover funeral costs of the insured individual.
Following are the significant features of this type of insurance –
- Policies are of small amounts, below $50,000. Generally people go for a policy amount of $10,000 -$15,000.
- No medical or physical examinations are required.
- Rates do not go up as long as the policy is in effect,even with advancement of age,which is usually lifelong.
- Policy cannot be cancelled by the insurance company except for non-payment of premiums. Only the policy holder can terminate the policy.
- The policy starts accumulating cash value after the first year
- Benefits related to death come into effect after the completion of two years of the policy. Limited benefits will be given during this period.
Due to these features, this kind of policy is ideal for people over 50 years or more. It gives an extra financial and mental support to be prepared for some of the unpredictable expenses in the future, especially during the last phase of life.