Guaranteed acceptance life insurance
Guaranteed life insurance policies explained
Everything you need to know about guaranteed life insurance – the no questions asked life insurance designed for older people
Everything you need to know about guaranteed life insurance – the no questions asked life insurance designed for older people
Guaranteed life insurance is a type of life insurance designed for over 50s. Like other life insurance policies, it provides a lump sum payment to the person of your choice when you die.
However, unlike other forms of life insurance, it does not involve having a medical examination or answering lots of questions about your health – making it accessible to those who would otherwise find it hard to take out life cover.
As with other forms of life insurance, you must pay regular premiums to maintain a guaranteed life insurance policy. If you stop paying the premiums, which are set by the policy provider and usually remain the same throughout, you’ll lose the money you’ve paid in so far because the policy won’t pay out on your death.
You can usually take the cover out with immediate effect, after which you have a ‘cooling-off period’ during which you can cancel the policy without losing any money. However, given the lack of medical checks, many insurers will refuse to pay out the full amount if you die of ill health soon after buying a policy.
The main advantages of guaranteed acceptance life insurance are:
The mains disadvantages of guaranteed acceptance life insurance are:
Guaranteed life insurance should always pay out when you die within the policy terms. However, most insurers include a minimum term in the conditions that means your beneficiary will only receive the amount you’ve paid in premiums if you die of ill health within a certain time.
The time this condition lasts varies from one policy to another, but is usually between one and three years from the date you buy the policy.
Yes, you can put a guaranteed life insurance policy in trust. The most common reason for doing this is to prevent it being considered part of your estate for inheritance tax (IHT) purposes – although this is only a concern if the value of your estate is likely to exceed the IHT threshold.
Most people who take out guaranteed life insurance are over 40 – while many are over 50 years of age. The upper age limit on policies of this kind varies between insurers, but is usually between 75 and 100.
No, that’s why guaranteed life insurance is also known as no questions asked life insurance, and is popular with people who might otherwise struggle to get a policy – usually due to pre-existing health conditions.
Not having to have a medical exam also means you can take out a guaranteed life insurance policy within minutes, as there’s no need to wait for the test results to come in.
The main alternatives to guaranteed life insurance are:
If you’re in a couple, you may also want to consider taking out a joint life insurance policy, rather than two single policies.
Comparing life insurance quotes with MoneySuperMarket is a quick and easy way to find cover if you’re over 50. Just tell us a bit about yourself and the type of life insurance you want, and we’ll search the market for deals that suit your needs.
You can compare quotes by the overall cost and the cover you’ll get – and once you’ve found the one you want, just click through to the provider to finalise your purchase.