Should I Buy No-Questions-Asked Life Insurance?

“No-questions-asked life insurance”, also known as guaranteed issue life insurance, is a policy which ensures your acceptance regardless of your current or past health challenges. There are three caveats to these plans.

Firstly, there is a graded benefit clause which will not pay the full death benefit amount should you pass away during the first two policy years. Secondly, these policies are overpriced, and the maximum death benefit will not exceed $40,000. Thirdly, you must be between the ages of 40 and 85 to qualify for guaranteed issue plan, so if you are younger than 40 years old, you will not be able to purchase these policies.

Here is my advice: You should never, ever buy guaranteed issue coverage unless you’ve exhausted all other options and you can afford premiums.