Helping the "uninsurable" secure coverage is challenging. Clients who have health problems or have been denied coverage in the past still need life insurance. One option is guaranteed issue life insurance. Given the high risk nature of coverage, few insurers offer it. However with a little preparation and extra effort, you can find the right policy.

Life Insurance Medical Questions

High risk clients need to answer questions about their medical history so that you get the information you need to find the right coverage. Candidates for guaranteed life policies often:

- have permanent health problems

- need coverage to leave a legacy or to provide for final expenses so that their loved ones are left with no debt.

Guaranteed Issue Life

Guaranteed issue policies do not require a physical and preexisting medical conditions usually are not a factor in the application process. Often such applications require only general information, such as name, address, ID number, gender and beneficiary.

The death benefit generally pays the beneficiary full face value if death occurs after the waiting period. Policies typically specify a period of one to 3 years during which time the policyholder will not be covered for the full amount. If death occurs during this time frame, the beneficiary would likely only receive a return of all premiums paid with interest. However, if the insured has a fatal accident, most companies will pay the beneficiary the full amount.

There are pluses and minuses that come with guaranteed issue policies. Some advantages include:

1. no medical evaluations

2. a level death benefit that is guaranteed as long as premiums are paid

3. premiums will not increase

4. the policy proceeds are usually free of estate tax

5. policies usually avoid probate if a beneficiary is named

On the other hand, you and your clients may have concerns about the following:

- guaranteed issue policies can be costly

- waiting periods can be lengthy - up to 3 years

- if the client is willing to provide some medical information, he/she may be able to purchase a different type of coverage that might be cheaper.

If the disadvantages outweigh the advantages for a particular client, an easy issue policy is a better choice. Such policies offer the full face value starting from the date of issue. These policies may work best for those who are under the age 40, need full benefits immediately have been without disease for the last five to ten years, or have a minor illness.

The "uninsurable" face many difficult planning decisions, but everyone needs the protection coverage that life insurance offers. With guaranteed issue policies, approval may just be simple steps away.