Should I buy a guarantee issue life insurance coverage? My wife and I have recently relocated here in Texas and we want to make sure each of us is covered just in case.

Suzanne

Mesquite, TX

Good question. Life insurance is one of the best investments you can make. There are a number of coverage types to choose from and it would be highly beneficial to you if you understand how each type of policy works. Nowhere is this truer than on a guarantee life insurance policy.

So What Is a Guarantee Issue Life Insurance Policy?

This is a kind of life insurance plan that does not require its applicants to undergo any kind of medical screening or pre-qualification, hence “guaranteeing” that anyone can get life insurance coverage. This type of policy is also very easy to acquire unlike more traditional forms of life coverage which may take a while before coverage starts.

Advantages and Disadvantages

So should you go with this kind of policy? It depends. Take note that a guarantee issue life policy is usually more expensive than a regular plan. The insurer is taking in a higher level of risk by not running a medical check and therefore would compensate for this risk by charging bigger premiums. There is usually a contestability period (2-3 years) from the effectively date of the plan. If you pass away during this period death benefits will not be awarded to your beneficiaries.

However, if you are nearing retirement age or have a medical/health condition that has prevented you from getting life coverage before, then this kind of policy suits will definitely be the best option for you. Is there any reason for you and your wife not to undergo a standard medical exam for life insurance coverage there in Texas? If the answer is yes then go with this plan otherwise why pay extra unnecessarily?