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A lot of seniors who need final expense life insurance might be reluctant to take the time to shop for coverage because they’ve been turned down by several companies because of multiple or severe health issues.
Let’s face it, seniors have a difficult time finding affordable traditional life insurance even when they’re healthy so they naturally assume that buying life insurance when they’re not very healthy will be impossible (and in most cases it is).
There is good news, however, because AIG and a few other life insurance companies offer Guaranteed Issue (guaranteed acceptance) final expense life insurance to seniors no matter how many health issues they have.
What is Guaranteed Issue Life Insurance?
Guaranteed Issue Life Insurance was designed to provide a way for seniors with multiple or severe medical issues to buy enough life insurance to pay for final expenses.
And, since the guaranteed issue policy is whole life insurance, the policy will come with all the features and benefits of a traditional whole life insurance policy.
- The policy cannot be canceled by the insurance company for any reason other than non-payment. This means if you become terminally ill and must live in a hospice facility, the insurer cannot cancel your coverage. It lasts for a lifetime.
- Once a guaranteed issue whole life policy is issued, the premium is locked in for the life of the policy. No illness, injury, or number of birthdays can be used to increase your premium payment. It’s locked in forever.
- A guaranteed issue final expense life insurance policy builds cash value over time and the insurer will pay interest on that cash value every year. This means that a policyholder will accumulate funds in the account that can be accessed through policy loans for any reason and there’s never a credit check. In fact, you don’t have to pay back the loan because the insurance company can just deduct it from the death benefit when you die.
AIG’s Financial Stability
Although AIG needed the American taxpayers to bail them out during the market crash 10 years ago, the organization was restructured and then able to repay the debt to taxpayers in full plus interest.
After restructuring and paying off the company’s bailout debt, the insurer’s ratings with the national rating services are once again near the top:
Rating Service | Current Rating | Description |
A.M. Best | A | Excellent |
S&P | A+ | Strong |
Moody’s | A2 | Stable |
Fitch | A+ | Stable |
Since a life insurance policy is simply a promise to pay a death benefit in exchange for a premium, all seniors must consider a life insurance purchase, check the financial stability of a company before pulling the trigger on the purchase.
The company’s financial ratings provide the evidence you can rely on that the company will keep its promise (pay the claim) whether it happens 5 years or 55 years from the day you purchase your coverage.
How does AIG Guaranteed Issue Final Expense Insurance Work?
A guaranteed issue life insurance policy is similar to any other whole life policy except the applicant’s medical history is not taken into consideration when applying for coverage.
This means there is no medical exam required, no blood or urine tests required, and no medical background check is ordered when applying for coverage. In fact, any living person who is 50 to 95 years old and living, will qualify for a guaranteed issue life insurance policy from AIG.
The reason that AIG can offer life insurance to high-risk applicants is that the company charges higher rates than traditional whole life insurance policies and if the insured dies from natural causes within the first two years of coverage, the insurer will pay a death benefit equal to 110% of all premiums paid.
In year three and afterward, the company will pay the full death benefit in the policy, Additionally, death resulting from an accident is fully covered from day one.
Highlights of AIG Guaranteed Issue Final Expense Insurance
As a guaranteed issue life insurance product the AIG guaranteed issue product is straightforward as far eligibility, coverage amounts, and additional insurance riders at no additional costs.
Guaranteed Issue with No medical exam or questions:
- Issue ages – 50 – 85
- Face amounts – $5,000 to $25,000
Graded Death Benefit:
- First Year – 110% of all premiums paid
- Second Year – 110% of all premiums paid
- Third Year and after – 100% of the Death Benefit
- Accidental death – 100% of face amount (no waiting period)
No Cost Living Benefits:
- Chronic Illness Rider – an advance of up to 50% of the death benefit – no waiting period
- Terminal Illness Rider – an advance of 50% of the death benefit if diagnosed with a terminal illness and life expectancy of 24 months or less
How much Does AIG Guaranteed Issue Final Expense Insurance Cost?
We consider a guaranteed issue life insurance like life insurance of last resort and will first attempt to get all applicants qualified with a traditional final expense insurance policy.
Regretfully some companies advertise guaranteed acceptance life insurance in TV commercials but choose not to make the waiting period and modified death benefit very conspicuous in their advertising.
Here are the rates you can expect to pay for AIG Guaranteed Issue Life Insurance for a $10,000 final expense policy:
Age | Male Non-Smoker | Female Non-Smoker |
---|---|---|
50 | $55.99 | $38.58 |
55 | $61.37 | $46.60 |
60 | $68.14 | $53.93 |
65 | $90.83 | $66.42 |
70 | $106.00 | $80.41 |
75 | $149.66 | $115.73 |
80 | $206.32 | $189.53 |
To get accurate rates for your actual age, please use our instant rater on the right side of the page.
Where’s the Best Place to Buy AIG Final Expense Insurance
Although many agents represent AIG Life Insurance Company, seniors should contact an independent broker like Senior Benefits Consulting to speak with an experienced professional who is familiar with the senior marketplace.
We represent many of the highly-rated life insurance companies who cater to the senior marketplace and will endeavor to find the best life insurance solution for your circumstances and budget.
My name is Nichole Marmes, I am the owner of Senior Benefits Consulting. I love helping people, in particular seniors. I spent five years managing a memory care facility before I decided to transition into life insurance. My favorite part of working at the memory care unit was learning about the “good ole days” and making a difference in my residents’ lives. My passion for helping seniors has continued into my journey at Senior Benefits Consulting.