Guaranteed life insurance is insurance that can be given to anyone and it is guaranteed without the need for a health examination.
All you need to do is give the insurance company:
- Your name,
- and any other relevant details.
Very often, health problems and age are factors when it comes to regular insurance policies so people who cannot get policies any other way, opt for this one.
Insurance companies safeguard themselves with certain clauses. Some companies will only pay out a portion of the cover if the person dies within a short time of the policy being issued. Of course, if the person dies due to an accident many will pay the full amount. Full payouts in the normal course will only be after a time specified by the company, usually at least a couple of years. Insurance companies will also set an upper limit for the policy - a person cannot take this policy for a huge amount. Most people will take a policy like this so that their family will have enough money at the time of death to cover expenses incurred, for example on the funeral.