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Understanding Guaranteed
Acceptance Life Insurance

If you're over 50 years old, you've probably thought about purchasing life insurance to help protect your loved ones if you pass away. But what if you don't want to provide health information, like most types of life insurance require? Then you may want to consider guaranteed acceptance life insurance protection, because it requires no medical exam or health questions.

What is guaranteed acceptance life insurance?

Guaranteed acceptance life insurance is a form of whole life insurance that you can keep for your entire life. Like its name implies, if you apply for coverage you can't be turned down. You're automatically approved without providing any details about your medical history. As long as you pay your premiums, you'll help ensure that your family has protection after you're gone.

Coverage can help pay for:

  • Funerals and other final expenses
  • Medical bills
  • Household bills, such as utilities and rent/mortgages payments

Why should I buy guaranteed acceptance life insurance?

There are a number of reasons you might consider buying a guaranteed acceptance policy:

It's easy to get and you can't be turned down

The application process is usually very simple, and since the issuing insurance company only has to verify eligibility, you'll typically receive your coverage within days. Eligibility requirements vary by policy or program, issuing company and state, but typically include age and perhaps a few other factors. You'll want to be sure you understand the eligibility requirements before you apply.

There's no medical exam or health information needed

Since you can't be turned down for medical reasons, this information isn't necessary to apply. There are no health questions, medical tests or physical exams of any kind.

Rates won't go up as you grow older

The rate you receive when you apply is usually locked in for as long as you keep your policy current and won't increase as you age. The younger you are when you apply, the lower your monthly premiums will be. However, because acceptance is guaranteed, the premiums may be more expensive than traditionally underwritten life insurance policies.

Pros Cons
No medical exam, lab work or health questions Typically carries higher premiums compared to other life Insurance products
Rates won't increase as you age Available coverage amounts may be lower than with other life Insurance options
Whole life Insurance you can keep your entire life May provide limited benefits if you die within the first two years
Faster turn-around time between application and acceptance May have lower cash value than other whole life policies

Are there any limitations to this type of insurance?

In exchange for guaranteed acceptance, the trade-off is that many policies pay only a portion of the benefit amount during the first two years the policy is in effect. This doesn't mean that you'll lose money, though. The benefit amount usually totals the premiums paid - so your family receives back what you've put in. After the two-year limited period, full benefits can be received.

How do I start the process?

The first step is to see if you're eligible for this type of insurance. Although you can't be turned down for health reasons, many policies have limits based on age and other factors. Once you know this is the right coverage for you, the next step is to get a free quote and submit your application. Many companies offer the option to easily apply online or directly by mail.

Ultimately, only you can decide which type of life insurance makes the most sense for your particular circumstances. By educating yourself about different products such as guaranteed acceptance, term life and permanent life insurance, you're on the right path to getting the knowledge you need to make the right decision.

This article is provided by New York Life Insurance Company for informational purposes only. This article is not intended to provide tax, legal, financial, or accounting advice. Please consult your own professional for advice specific to your circumstances.

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