In New York State Guaranteed Issue policies are offered to ages Fifty through Eighty. There are many ads for True "guaranteed issue" policies that ask no health questions. The Companies may charge a higher premium and limit the benefit amount because of the potential risk of insuring people with minimal underwriting.
The Insurance Companies usually have a two or three year Waiting Period. This means that if a death occurs before the waiting period ends the beneficiaries would receive the return of all paid premiums with interest. If you can complete the application you really can get insured! If you can complete a longer form and answer more questions, including health questions, you may also qualify for a lower premium and higher benefit with a plan that is not Guaranteed Issued.
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In New York State the Contestability Period is two years. The Contestability Clause is a Life Insurance policy provision. It allows the Insurer to void or contest the policy if any misrepresentation is discovered before the two year period expires. After two years have passed the Insurer cannot contest the policy for any reason other than non-payment. To ensure a policy stays in force and is not contested it is wise to always answer...more
A Beneficiary for Life Insurance is the Person or Persons designated to receive the death benefit from the life insurance. Beneficiaries are usually Spouses, Children, Siblings, Parents and other Close Relatives, Friends and Partners. Nonprofit institutions such as Places of Worship, Schools, Libraries, and Community Groups are also commonly chosen beneficiaries. The Beneficiary should be a responsible party who will be aware that they...more
Whether you tell a lie on purpose, or by accident, or misrepresent the facts in any way on a Life Insurance application, you are gambling that the Insurance Company won’t find out and you may lose that gamble. The Life Insurance Companies have 2 years from the effective date of the policy to do their homework. This contractual clause of the life insurance policy is called the 2 year contestability clause. The insurance company, with your...more
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