Stephen Hawking (pictured above) is likely the most famous person stricken with ALS, next to Lou Gehrig, of course.
Mr. Hawking lived roughly fifty years with ALS, a feat which is unrivaled.
Most people who are diagnosed with ALS live 2 to 5 years after the initial diagnosis.
Because the life expectancy after ALS diagnosis is limited, traditional life insurance companies do not insure ALS patients.
Therefore, ALS sufferers must get guaranteed issue life insurance if they decide to get life insurance at all.
The following article will discuss the following:
- What guaranteed issue life insurance is, as well as its pros and cons, and
- Which life insurance companies offer guaranteed issue life insurance.
If you have ALS and would like quotes for guaranteed issue life insurance, you can contact me here.
So, what is guaranteed issue life insurance, and what are some pros and cons of guaranteed issue life insurance?
I write specifically for the Gen X population (people in their mid to late 30’s, 40’s, and early 50’s born between 1965 and 1984).
The majority of ALS patients are diagnosed between the ages of 40 and 55 which is the Gen X demographic I focus on—therefore, the ALS articles on life insurance that I write can be particularly useful to any Gen Xers reading this or anyone stricken with ALS, in general.
So what is guaranteed issue life insurance?
Guaranteed issue life insurance is exactly how it sounds.
With guaranteed issue life insurance, if you apply for the policy, you are guaranteed to get the policy as long as you pay the premiums.
Here are some of the pros of guaranteed issue life insurance:
- No Medical Exam and No Health Questions—there is no requirement to take a medical exam in order to get a guaranteed issue life insurance policy. Furthermore, there are no health questions on a guaranteed issue life insurance policy application. As aforementioned, if you apply for a guaranteed issue life insurance policy, you get the policy as long as you pay the premiums.
- You can get life insurance—most of the people who apply for guaranteed issue life insurance have been turned down for life insurance elsewhere. Being denied life insurance and then going through the application process again can be very disheartening. With guaranteed issue life insurance, you will not be turned down for coverage—yes, anyone, regardless of health conditions, can receive guaranteed issue life insurance, albeit there are some rare exceptions.
Here are some of the cons of guaranteed issue life insurance:
- 50 to 80 Age Limit—Guaranteed issue life insurance is typically only available to people between the ages of 50 and 80. Guaranteed issue life insurance is not available to people younger than this.
- Limited Coverage—Most guaranteed issue life insurance policies max out at around $25,000 so they are not large policies. Guaranteed issue life insurance policies typically go toward burial and final expenses.
- Graded Death Benefit—A graded death benefit means the following: if you die within the first two years of your guaranteed issue life insurance policy being issued, your family (i.e. your beneficiaries) will only receive the amount of premium you paid in as life insurance money. After that two year period, your beneficiaries will receive the entire death benefit.
- Expensive—Guaranteed issue life insurance policies are not cheap. They are typically three times the amount that a traditional life insurance policy would cost for the same amount of coverage.
So, which life insurance companies offer Guaranteed Issue Life Insurance?
There are a number of companies that offer guaranteed issue life insurance.
Here are three life insurance companies that do a good job in providing people with guaranteed issue life insurance:
- United Home Life Insurance Company
- Gerber Life Insurance Company
- Mutual of Omaha Insurance Company
If you have ALS and need guaranteed issue life insurance, I would recommend starting your life insurance search with these companies.
Bottom Line on Guaranteed Issue Life Insurance and ALS:
The bottom line for ALS sufferers is that guaranteed issue life insurance is the only option available to you for life insurance. Do not waste your time trying to get a traditionally-underwritten life insurance policy or even a life insurance policy with simplified underwriting—go straight to the guaranteed issue route.
Guaranteed issue life insurance policies are limited to around $25,000 in coverage, are relatively expensive, have an age limit of 50 to 80, and have a graded death benefit.
However, guaranteed issue life insurance is a life insurance policy that can help your family bear the financial burden of a funeral and final expenses when you die so your family can grieve your loss.
I hope this has been a helpful article on guaranteed issue life insurance and ALS.
If you have ALS and need guaranteed issue life insurance, email me at email@example.com or contact me here.
Until next time and until next life insurance article,
Life Insurance Agent for Generation X
Weigel Insurance Agency