Having a life insurance policy in place is a smart financial move. With life insurance, you help to protect those you love financially in the event that something happens to you. Typically, the process for getting a life insurance policy can take some time. There are medical questions to answer and a medical exam to take. Then there’s a waiting period before the policy actually takes effect. While many may be able to deal with the waiting period, others can’t. Here are a few different types of life insurance policies that you can get when you don’t have the time for a waiting period.
Instant Issue Life Insurance
Instant issue life insurance, or immediate benefit life insurance, is a type of policy that works much like a traditional life insurance policy just without the waiting period. You’re provided with coverage from day one. There’s also no need for a medical exam, which is often needed with traditional life insurance policies.
There are still some medical questions that you’ll need to answer though. If you can’t afford the luxury of a waiting period (perhaps you have a business loan that requires you to have a life insurance policy in place for finalization and you’re only just finding out about it), this type of life insurance may be the solution for you.
Guaranteed Whole Life Insurance
A guaranteed life insurance policy is one that cannot be rejected for any reason. There is no medical exam and no health questions. This type of policy provides a significant benefit to those with serious health conditions that would make a standard life insurance policy near impossible to get. The biggest disadvantage to this type of policy is that it is one of the most expensive types.
A standard guaranteed life insurance policy typically comes with a waiting period of two to four years. It is possible, however, to get a guaranteed whole life insurance policy without a waiting period.
The full benefits of this policy are available from the time the first payment is made. Keep in mind, this policy may be even more expensive than one with a waiting period, but, depending upon your circumstances, it may be worth the cost.
Graded Benefit Life Insurance
A graded benefit life insurance policy is a little different. With this type of insurance policy, you don’t immediately have the full benefit of the policy from the start. It typically takes about two years for that to happen. If you take out this type of insurance policy and die within the first year, your beneficiary may only receive about 30% to 40% of the full death benefit.
If you were to die during the second year, the beneficiary may only receive 60% to 70% of the full death benefit. This type of insurance policy is a form of permanent life insurance. It’s a good option for those who are not in the best of health and might not otherwise qualify for standard life insurance.
Final Expense Insurance
Final expense insurance is a type of insurance that’s a bit different than life insurance. This particular type of policy is designed specifically for the end of life expenses, typically the cost of a funeral service and burial or cremation, as well as all of the other associated costs.
The policy can also be tailored to help pay for any remaining outstanding debts.Final expense usually has no waiting period and is typically aimed at older individuals who don’t have significant financial obligations, such as dependent children or a mortgage payment. The policy is tailored to meet your needs, and can be issued with or without a waiting period.
Life insurance policies that have waiting periods do tend to have lower premiums, but sometimes you just can’t wait. Just because you choose a policy without a waiting period, that doesn’t mean you have to pay a fortune. Make sure that you do your homework and shop around to find the best type of policy for you.