Most of us need life insurance, but it isn’t something we like to think about or discuss.  The reasons to own a life insurance policy are countless. It’s not something that is enjoyable to discuss, but it is important to discuss from time to time.

The Life Happens Organization completed a study and indicated that about 95% of people felt life insurance was an important topic.  But 59% of people felt that they may not qualify for coverage, or that it may be too expensive. These misconceptions may keep you from pursuing coverage that could harm your family in the future.

NO Medical Exams are Needed

Life insurance has evolved over time.  Insurance companies finally understand that consumers do not want to do a blood and urine test, and have their medical records looked thru.  Companies are now offering life insurance without having to go thru all of this.

It’s possible to even qualify for non-medical exam coverage with pre-existing conditions.  Life insurance companies will approve people with type 1 or type 2 Diabetes without having to complete an exam.  Not only that, but the approval time may take a matter of minutes, or days.  No longer will you have to weight weeks for a decision. Technology isn’t always a good thing, but in this case, it is!  

All types of insurance policies are available without an exam.  Term insurance, whole life insurance, even guaranteed universal life insurance can be obtain without an exam.  No matter the type of policy you are seeking, you can qualify without getting your blood and urine tested.

Some Policies are Guaranteed Acceptance

Not everyone is in the best of health.  Unfortunately, even if you’ve recently been treated for a heart attack, or cancer, you may have a need for life insurance.  The bad news is about 98% of insurance carriers will not consider you for coverage. But good news is there are certain companies who specialize in these guaranteed issued policies.

Like the name sounds, these policies are guaranteed to accept an individual.  However, they will limit coverage per person from $10,000 to $25,000. Often the policy will be a permanent whole life policy.  Due to most applicants being in below average health, the full death benefit will not be paid out until after two years. If a person passes away in first two years of a policy, the premiums plus 10% are paid to the beneficiary.

If a person needs more then $25,000 of guaranteed issued coverage, they can always take out more then one policy.  Premiums for these policies are more expensive then other types of plans. But that is again due to insurance companies taking a risk on accepting all applicants.

Life Insurance can be used for Funeral Expenses

Unfortunately, being born costs money, and dying costs money.  At the end of one’s life, there will be funeral costs, burial expenses, and other final expenses.  Many people don’t think about how they are going to pay for these costs.

Some people may be financially disciplined to save enough money and not dip into their savings.  But many are not this disciplined. If you fall into the latter category, a burial insurance policy may be ideal for you.

At the time of death, these final expense policies will pay a death benefit to the beneficiary.  The lump sum, tax free benefit can then be used to take care of the various expenses. Most final expense policies cover a person’s entire life, which gives you peace of mind knowing that your loved ones will have the needed funds, to address your Funeral.

Published by Charlesa Gibson