Guaranteed Life Insurance

Guaranteed Life Insurance: Over 50 and Loving It

Guaranteed life insurance is a type of life insurance that is usually offered to applicants who are more than 60 years of age. Guaranteed Insurance is often cheaper in the end because the monthly premiums would not be altered over time.

Guaranteed versus reviewable

There are two main types of life insurance when it comes to the monthly premiums, themselves. The first type of life insurance is called reviewable because you can choose to extend the coverage period indefinitely.

As long as you or your spouse is paying the required premium on a monthly basis, the company would continue to protect the nominated individuals in your insurance policy. In the even of death, a fixed lump amount would be given directly to the beneficiary or beneficiaries of the life plan.

Guaranteed life insurance requires a slightly higher monthly premium than reviewable insurance plans. However, for the entire duration of the plan there would be no price increases. We�re not only talking about ten years here; we�re talking about 20 to 30 years of increase-free monthly premiums

Why do reviewable plans sound cheaper?

This is a common misconception among new applicants. The reason for this is simple: all increase in monthly premiums are suspended or waived for at least 10 years. This sounds very attractive to consumers. A facile comparison of how much you would be paying for the coverage you chose for the next 10 yeas would tell you that a reviewable plan is cheaper than guaranteed plan.

In the end, the reviewable plan would cost more because after the 10 year period, the price for monthly premiums begins to increase. Even age and health plays a part in the re-computation of monthly premiums.

What to expect

If you�re already in your twilight years (70 years old and above), you might be more interested in guaranteed life insurance than other life plans. Most likely, you have already been turned down by most life insurance companies because the risk of death is simply too high for comfort. A guaranteed insurance policy would not even require a medical examination prior to the approval of the policy.

Basically, you�re saddled with a bunch of other policyholders who are at high-risk for death. That translates to higher monthly premiums. So how do you save more money? Before you go for mortgage protection or terminal illness coverage, try to opt for ordinary life insurance first. If your children are already grown and have their jobs already, you won�t have to leave behind too large an amount, anyway. GP