Perhaps you've seen ads for guaranteed issue life insurance. The message is always the same; "Get approved for guaranteed issue life insurance with NO medical exams and NO medical questions!" But how much guaranteed coverage can you really get from guaranteed issue life insurance? What makes guaranteed issue life insurance different, and are there other available options?
Why it's different
A guaranteed issue life insurance policy will insure whoever applies for it, no questions asked. It's different from life insurance that advertises "no medical exam," because the life insurance company could still turn you down for those policies based on health and eligibility questions you answer.
Typically, guaranteed issue life insurance is marketed to senior citizens or those with medical problems. Since the insurance company assumes you are much more of a risk, the coverage and premiums will reflect that. You generally can't purchase more than $20,000 of coverage, and premiums are higher than normal.
Available options and risks
Insurance companies base your rates on your age and medical information, so it usually makes sense to buy traditional life insurance if you can pass a medical exam and answer health questions. You will probably pay less and have better coverage.
What makes guaranteed issue policies risky is that, because of the high premium cost and low coverage amount, you could pay more in premiums than your beneficiaries will see in death benefits. Some states have adopted laws requiring the life insurance company to notify you prior to purchase of the time it takes to reach this point, but some have not.
How the insurance company prevents fraud
Some life insurance companies added a "graded benefits clause" to guaranteed issue life insurance policies to protect themselves from fraud. Graded benefits clauses state that if the policyholder dies within two to three years of buying the policy, the company will refund the premiums paid, plus interest, instead of paying out the death benefit. This prevents people from purposely buying a policy just before their death. As with all types of insurance, guaranteed issue life insurance can't be used to pay for something that's about to happen. A few companies may pay out full death benefits in the event of an accidental death – but the definition of accidental death is very limited.
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Originally posted September 17, 2004.
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Filed under insurance by on Dec 24th, 2010. Comment. 
United Healthcare through their subsidiary Golden Rule is a carrier offering affordable health insurance rates in much of the United Sates. Recently UHC added several new benefit options to their individual and family plans including preventive care, dental coverage, term life, as well as more deductible, coinsurance, and copay choices.
Comprehensive Coverage Options
Consumers who wish to purchase comprehensive health insurance coverage should consider the Copay Select, Plan 100, and HSA 100. The Copay Select offers preventive care, prescription drug coverage, and either a $25 or $35 doctor's office copay - all of which are not subject to the deductible. The HSA 100 is a health savings account qualified plan offering preventive care that will cover medical expenses at 100% after the deductible has been met. The Plan 100 works much like the HSA 100 except that it does not offer a tax qualified health savings account and more than one deductible must be met before families are covered as a whole.
High Deductible Catastrophic Coverage
Consumers who want catastrophic, lower premium health insurance plans will find an abundant selection with UHC. The HSA 80, Plan 80, Saver 80, and the Copay Saver all offer comprehensive medical coverage at an affordable price. These types of plans will offer higher deductibles as well as 20% coinsurance (usually up to $10,000) after the deductible has been met. No frills coverage like this may not offer much in the way of first dollar benefits like prescription drug coverage and doctor's office co-pays, but the trade off is low cost insurance that will cover larger medical claims.
Available Benefit Options
All plans with UHC offer several riders that can be purchased at an additional cost. Riders include a lifetime maximum of 5 million as oppose to 3 million, a 24 month rate guarantee, supplemental accident coverage, term life insurance, maternity coverage, increased prescription drug coverage, and many states offer two dental plans to choose from.
Competitive Niche for the Shopper
UHC polices are competitive in many age groups including individual and family policies. Clients enjoy their large nationwide network and affordable rates. Underwriting is not accept/decline as with some other carriers, rather the insurance company might not include coverage for certain preexisting conditions like back disorders, severe asthma, allergies, etc. Oftentimes this means consumers can purchase health insurance with riders through United Healthcare when they have been declined elsewhere.
In summary, UHC offers several plans with different coinsurance and deductible options for prospective insureds. Affordability, network strength, and underwriting options are their most attractive features. As with all insurance, it is important to read the brochure and/or policy provisions for possible exclusions.
A.M. Hyers has been working in the insurance and investment industry for over ten years. He owns and operates Hyers and Associates, Inc. an independent insurance agency doing business in Arizona, Florida Georgia, Illinois, Indiana, Missouri, Pennsylvania, and Ohio.
His agency offers insurance products in the individual, family, and small business group marketplace. They use the leading national insurance carriers to quote health insurance, health savings accounts, dental, and vision plans.
Other lines of insurance offered include life insurance, disability insurance, and long term care insurance. They use several carriers to quote Medicare supplement plans and Medicare Part D coverage for seniors. Additionally, the independent agents of Hyers and Associates Inc. offer fixed, indexed, and immediate annuity policies for individual and group retirement plans.
Health insurance quotes in Arizona, Florida, Georgia, Illinois, Indiana, Missouri, Ohio, and Pennsylvania.
Individual and family health insurance in Arizona, Florida, Georgia, Illinois, Indiana, Missouri, Ohio, and Pennsylvania.
Filed under Health Insurance by on Mar 15th, 2010. Comment.