Did you know guaranteed issue term life insurance exists?
No, John. I’ve only heard about guaranteed issue whole life insurance.
Right. This is guaranteed issue term life.
Same thing. No health questions.
No MIB lookup or underwriting.
You fill out the online application. Then, pay via credit card or with a debit card.
You then have life insurance.
There are some differences. Notably, this is term life insurance.
John, tell me more.
- How Does It Work?
- What Is The Structure Of The Death Benefit?
- How Much Does It Cost?
- Where Is It Available?
- Who Is This Good For?
- What Are The Other Association Benefits?
- How Do I Apply?
- What If I Need More Coverage?
- How We Can Help
Let’s jump in and discuss how the guaranteed issue term life insurance works.
How Does The Guaranteed Issue Term Life Insurance Work?
I know what you are thinking.
John, how am I able to obtain guaranteed issue term life insurance? I only heard of guaranteed issue whole life insurance.
Here’s how you can obtain term life insurance with no health questions or underwriting.
It’s through an association. Associations, like businesses, can offer insurance benefits to their members. One of those benefits is life insurance.
The association is the Wellness Association of America (WAOA). The life insurance premium includes the membership fee for WAOA. In other words, your monthly life insurance premiums cover both the membership fee and the life insurance itself.
The life insurance plan is underwritten by Lifeshield National Insurance company. They are located in Oklahoma.
The marketing name of the insurance plan is Protection Plus.
You can purchase between $10,000 and $50,000 of term life insurance. They are
- Protection Plus10 = $10,000 death benefit
- Protection Plus20 = $20,000 death benefit
- Protection Plus30 = $30,000 death benefit
And so on…
People between the ages of 18 and 75 may apply.
Everyone is accepted. No social security number is required.
John, is there a waiting period like other guaranteed issue life insurance policies?
Yes, now is a good time to discuss the death benefit.
Structure Of The Death Benefit
As mentioned, you can purchase between $10,000 and $50,000 of life insurance, in $10,000 increments.
However, like all guaranteed issue life insurance, there’s a waiting period on the death benefit.
As we explain in our guaranteed issue life insurance guide, the reason carriers do this is to avoid quick payouts of the death benefit. There’s no underwriting, so carriers must mitigate their risk somehow (in order for the premiums to be reasonable and their plan solvent and competitive).
With the Protection Plus, the waiting period is 2 years and is structured as follows:
100% of the death benefit is paid anytime if death is due to an accident.
Here’s an example.
Larry is 56 and purchases the Protection Plus10 (i.e. $10,000 death benefit). His premium is $58.38 per month. He paid 10 months when he, unfortunately, passes away from an illness. His beneficiary receives $583.80 or 10 X $58.38.
Let’s say he passes away in the early part of year 2. Then, his beneficiary receives $2,000 ($10,000 X 20%).
Let’s change the situation where Larry is driving his car and passes away in a car accident in year 1. His beneficiary receives $10,000.
Note the waiting period again. If a doctor certifies that you have a life expectancy of fewer than 24 months, then this plan is not right for you.
How Much Does Guaranteed Issue Term Life Insurance Cost?
The Protection Plus plan has step-up premium rates as you enter age bands.
Step-up rates are very common in association and group employer life insurance plans. The Protection Plus is no different.
The plan has 5-year fixed premiums. You can convert the term life insurance into one of LifeShield’s permanent plans, if you wish (called the convertibility feature).
Here’s a snapshot of the current rates and age bands. Of course, this is subject to change.
These rates include the cost of membership to WAOA. They do not include a one-time, $25 application fee.
Where Is It Available?
If you live in a state where Protection Plus is not available, please contact us. We likely have other options available for you.
Who Is The Guaranteed Issue Term Life Insurance Good For?
- Undocumented immigrants and non-citizens
- US-born people who opt out of a social security number
- People on Medicaid.
- Those who are currently on parole or probation.
- People with HIV or AIDS.
- Those living with Huntington’s Disease
- People taking suboxone or another type of substance abuse prevention medication
- Those in current cancer treatments, but have a good prognosis for recovery
- People with cerebral palsy or muscular dystrophy
- Those confined to a wheelchair
- People on oxygen for COPD
The list goes on.
What Are The Other Association Benefits?
When you purchase the guaranteed issue term life insurance, you will have access to other valuable, non-insurance benefits. These benefits include:
How Do I Apply For The Protection Plus Guaranteed Issue Term Life Insurance?
Applying for the Protection Plus guaranteed issue term life insurance is easy.
Just click on the button below (or any of the “apply now” buttons in the article).
Enter your zip code.
On the next screen, enter your date of birth, select gender, and select the plan you want.
Have your personal information of date of birth and address ready.
Then, pay by credit card or debit card.
There is a one-time $25, non-refundable fee.
That is it!
Effective Date (I.E. Start Date) Payment Drafts For The Protection Plus
You do have to be cognizant of the policy’s effective date (i.e. the date the policy is in force) and payment draft dates.
Your initial payment date is based on your enrollment date. Ongoing drafts are fixed and depend on when you applied.
For example. You apply on May 3rd for $20,000 of the Protection Plus. The cost is $36.96 per month.
You are charged $36.96 on May 3rd.
Your start date is May 15th.
Your next premium is on June 5th, and so on.
What If I Need More Coverage?
John, the $50,000 is a good step, but I need more.
If you need more, contact us.
We’ve helped many people secure the life insurance they need.
We’ve even helped people who were declined before, sometimes with a traditional policy (i.e. an immediate benefit – no waiting period).
If your situation dictates a guaranteed issue whole life insurance plan, we have any options.
We have a plan that is available for people under the age of 40. Also, we have many affordable options, including one from a Catholic Fraternal Benefits Society.
We need to know more about you so we can make an educated recommendation.
How We Can Help You Obtain Protection Plus Guaranteed Issue Term Life Insurance
We at My Family Life Insurance are happy to help you with this guaranteed issue term life insurance product.
Please let us know if you have any questions about it. You can contact us or use the form below.
If you need more insurance, let us know. We can help.
We always work in your best interest, and there’s no risk in contacting us. If we can’t help you, we’ll part as friends and point you in the right direction as best we can. You can always contact us later if your situation changes.