Guaranteed Acceptance Life Insurance
What is Guaranteed Acceptance Life Insurance?
Guaranteed Acceptance Life Insurance (referred sometimes as Final Expense, Funeral Expense or Burial Expense Insurance) is a type of life insurance that is guaranteed if you're between the ages of 45 and 85, regardless of your health or preexisting conditions.
Benefits of Guaranteed Acceptance Life Insurance
- Guaranteed benefit amount (as long as premiums are paid).
- No increases in premiums.
- Policy will not expire.
- Death benefit is NOT taxable.
What can the benefit amount be used for?
Your beneficiaries can choose how to use the death benefit amount. Typically, the money is used for funeral/ burial costs, end-of-life medical bills, and any outstanding credit card debt.
Do you need it?
Do you currently have Life Insurance?
- If the answer is yes and the benefit amount is not sufficient to cover your outstanding debt1, final expenses, and if any, end-of-life medical bills;
- or
- If you don't have life insurance;
- or
- You simply want to provide some financial cushion for your loved ones;
Guaranteed Acceptance Life Insurance may address your need.
If the answer is yes and the benefit amount can pay off all your outstanding debt such as mortgage, credit cards, & medical bills, and will have funds remaining to cover funeral expenses, Guaranteed Acceptance Life Insurance may not be worth it.
How is your medical history?
Do you have a medical condition that would make it hard or costly to buy traditional life insurance?
Are your final expenses taken care of?
Typically, people mainly consider funeral expenses as the final expense. However, end-of-life medical expenses add to the costs considerably. The average end-of-life medical costs were estimated to be $11,618.2
The median cost of a funeral in 2021 has risen to $10,000 according to the National Directors Funeral Association, with the rise in cost calculated to be over a whopping 225% since 1986!3
A key factor affecting the funeral costs is your location. The average cost in Mississippi is estimated to be $6,568 while it costs $15,203 in Hawaii and $10,727 in California.4
1. Debt obligations bequeathed to beneficiaries depend on many factors, including where you live. Please consult with your financial advisor, tax or legal counsel.
2. Marshall, Samuel, et al. "Out-of-Pocket Health Care Expenditure at End of Life." National Bureau of Economic Research, Working Paper No. w16170, 2010.
3. "The rising cost of dying, 1986–2017." The Economics Daily, Bureau of Labor Statistics, 2017.
4. Olya, Gabrielle, "Can You Afford To Die in Your State?." GOBankingRates, Online article, 2021.
GUARANTEED ACCEPTANCE LIFE INSURANCE
- Guaranteed acceptance for ages 45-85.
- No medical exams, or health questions.
- Coverage up to $25,000.
- Premiums will never increase as long as paid in full on time.
