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?

My kids are still small but I wanna be able to leave them something when I do pass away that’s why I’m getting life insurance. How would I know that the coverage I would buy here in Texas will be sufficient?

Ashley

Fort Worth, TX

If you will get the right life insurance coverage, the Texas life insurance company that you choose will make sure that your kids will get the appropriate monetary protection. The benefits that they will get when you pass away depend on the amount of coverage you buy. When the Texas life insurance company tries to convince you to get the life insurance coverage from them, they should give all the information you need to know.

To know that the life insurance coverage you get will be sufficient and to assess the current and future financial needs of your family, you have to seek the help of a knowledgeable person about various life insurance policies. For example, experienced life insurance brokers are aware of the most recent changes and they know which life insurance companies offer discounted premiums and new features in their policies. So, if you consult such experienced people, you would get answers to your queries and more information about the life insurance coverage you should get.

This is actually the major advantage of seeking help about life insurance policies from a well-trained life insurance broker. If you use this process to choose a life insurance policy, you are guaranteed to clear any doubts you have and become aware about the changes of life insurance plans on their current offers.