We speak with a lot of clients that are considered by most companies to be uninsurable and they are looking for other affordable life insurance options. While not nearly as cost effective as a traditionally underwritten policy, there are guaranteed issue companies. These companies will write policies that are guaranteed to be issued, even if you are not insurable by traditional standards. These companies will charge a cost per thousand rate based upon your age. These per thousand costs will be significantly higher than and underwritten per thousand rate. If you are not insurable, you really don’t have any other choice than to pay it or not buy it. The other big drawback of this type of policy is the limitation on the death benefit amount. Usually the most that can be purchased is $50,000 of face amount.
Another great option is to try and get more coverage at your place of employment. Group life insurance is guaranteed issue and is usually going to be better terms than an individual guaranteed issue plan on the open market. On top of potential guaranteed issue plans, there are survivorship policies that can be issued with one unhealth spouse. If either the husband or wife are sick they may be able to buy a survivorship/second to die plan. This type of plan unfortunately doesn’t pay until the death of the second spouse, but it may be a good option if a client is not insurable. Survivorship is used heavily in estate planning and it is less expensive typically than other permanent plans.
There are life insurance choices for healthy people after 50 and for unhealthy people obtaining life insurance over 50. If you are healthy or not to unhealthy you obviously have many more choices and the whole suite of products and death benefit amounts are available to you. These products that are fully underwritten will assign you an insurance rating after underwriting which will determine your premium. Depending on your age, 10,15, 20, and 30 year term can be available to you. Also, permanent products like whole life, universal life, and guaranteed universal life. Guaranteed universal life, is very popular with people over 50 as it is a permanent death benefit at the lowest possible cost. While it doesn’t accumulate cash value like whole life, it will guarantee coverage until age 121.
If you are unhealthy and incapable of getting approved through full underwriting, then you can go for the guaranteed issue life insurance. These products are issued even if you are uninsurable in the traditional sense, but you will pay a heavy premium for these products. On top of that you will be limited to face amounts up to only about 50,000.
We generally suggest clients get there life insurance when they are still healthy and can qualify for fully underwritten products. When you get over 50, more health issues can come into play and it is a matter of time before something will affect your insurance rating. While the health issue may not make you uninsurable, it may force you to pay 40% more than you would have 6 months ago for the same coverage. Please call us today at 800-554-5142 and we can walk you through all the various options based on your specific situation.
