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.