Guaranteed acceptance life insurance and your estate

Help give your loved ones added peace of mind

Planning for the future often means helping to ensure your family can be taken care of. Guaranteed acceptance life insurance can be just one way to help you with this. Even if you have health concerns, this type of insurance is available. It can assist with covering final expenses, and you might even be able to leave something behind for loved ones.

Guaranteed acceptance life insurance can play an effective role in estate planning. Let’s take a look at how it works and why it matters.

What is guaranteed acceptance life insurance?

With guaranteed acceptance life insurance, you don’t have to visit a doctor, and there are no health questions to answer. It’s a relatively straightforward process. In most cases, if you apply and meet the age and eligibility requirements, you are guaranteed to be accepted.

This kind of life insurance typically offers smaller amounts of coverage, such as $5,000 to $25,000, and it is usually for people between 50 and 85 years old. While the lower coverage might not sound like a lot, it can help with important costs like funeral expenses or medical bills.

It’s important to know that guaranteed acceptance life insurance often requires a waiting period, usually around two years. The insurance company may return your premiums instead of paying the full benefit if you pass away from natural causes during that time. The full amount can be paid, though, if the death is due to an accident.

Guaranteed acceptance life insurance and estate planning

Part of estate planning involves deciding how you want your assets handled when you are no longer here. Guaranteed acceptance life insurance can be a helpful part of this plan.

1. Can avoid legal delays

Typically, life insurance does not go through court, a process known as probate. This means the life insurance company pays out funds directly to your beneficiary, whether that’s your spouse, child, or another loved one. Upon receipt, these funds can help with paying for the funeral or other bills.

2. Keeps things simple

This coverage can be straightforward to get and does not involve a ton of paperwork, compared to other types of coverage. There’s no need to answer health questions or medical exams. That’s why guaranteed acceptance life insurance may be an option to consider.

3. Helps you leave a legacy

Even a small benefit amount can be an impactful gift. It can allow you to leave money to a loved one or to support a nonprofit that matters to you.

Tips to make the most of it

To make the most of your life insurance, review your beneficiaries regularly. Make sure the right person or people are listed. Letting your loved ones know the coverage exists is also an important step to take. Be sure to explain how to claim the benefits when the time comes. Last, you might want to consider finding an estate planner or advisor to make sure your life insurance fits well with the rest of your estate plan.

Make a difference

Guaranteed acceptance life insurance can be the right option for people who want to protect their families but may not qualify for other types of coverage. It can be relatively easy to get, and it can help play a key role in your estate planning. While the coverage may be small compared to other types of life insurance, it can help make a big difference when your loved ones need it most.

This article is provided by New York Life for informational purposes only. Neither New York Life, AARP, nor its affiliates provide tax, legal, financial, or accounting advice. Please consult your own professional for advice specific to your circumstances.