If your health is in decline, yes, they are. But be aware…..I don’t care who is selling them, whether it’s Alex Trebec or Snoopy or any one of the 100 other ones you see advertised on TV, they all have one thing in common. After 8 or 9 years, you will have paid in premium the amount of the death benefit. If you live longer than that, you get nothing in return for your added premiums. It’s pure profit for the insurance company.
You have to be honest with yourself and ask, “Are the odds of me living more than 9 years good?” If the answer is no, then it’s a perfect policy for you.
If you expect to live longer than nine years and your problems are confined to Type 2 diabetes, high blood pressure, high cholesterol, or a cancer over 7 years old, then you’re better off taking a physical exam and checking to see whether you qualify for regular insurance. It costs you nothing to do so, and if you do qualify, you’ll get far more insurance for your money. I can search out the best one for you.
One thing you also need to be aware of is that most guaranteed issue policies have a modified death benefit. If you die in the first year or two of the policy, your beneficiaries will get back only the premium you have paid plus a fixed percentage. One famous company pays an extra 10%, which isn’t a bad interest rate, even if you live the full 23 months before the entire death benefit becomes available under the policy terms.
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