For those who are currently having a difficult time getting approved for life insurance, you may also want to read the following articles which focus on difficult to place insurance policies: 10 Great Final Expense Insurance companies, Our 10 Best No Medical Exam Life Insurance Companies, and Tips to a Great Life Insurance Quote.
Typically, whenever we get a call from someone who is asking about Namenda (Memantine), its usually a family member that is looking to purchase life insurance policy on a loved one who is suffering from either severe dementia or Alzheimer’s disease.
Unfortunately, Namenda (Memantine) is one of those medications that will lead to an automatic decline for most if not all fully underwritten term or whole life insurance policies which is why we’ll often recommend that a client who is currently using Namenda begin looking at insurance policies that won’t require a medical exam or ask any health related questions.
These types of policies are generally referred to as…
Guaranteed issue life insurance policies and are a great way to provide up to $25,000 in life insurance coverage for someone who would otherwise not be eligible for a traditional term or whole life insurance policies.
That being said however, it’s important to understand that these policies will also have some conditions and clauses to them since they don’t discriminate for illness. The main “clause” that anyone who is considering purchasing a guaranteed issue life insurance policy should be aware of is called a Graded Death Benefit.
Graded Death Benefit:
A graded death benefit clause, is something that an insurance company includes in a guaranteed issue life insurance policy that states that the newly insured must live for a certain amount of time (usually 2 or 3 years) after the life insurance policy first goes inforce before the life insurance policy will cover “natural causes of death”. Natural causes of death would include causes such as heart attack, stroke, cancer, diabetes, etc…
Accidental causes of death such as motor vehicle accidents, slip and falls, victim of crime, or natural disaster, etc.. would be covered immediately with a guaranteed issue life insurance policy and would not need to wait 2 to 3 years before being covered.
Additionally, should an insured pass away due to “natural causes” during the “graded death benefit waiting period”, most if not all of the guaranteed issue life insurance policies that we work with will contain a “return of premium” clause which would return all of the premiums paid to the insurance company back to the insured’s beneficiaries (typically with some type of interested added on to that balance).
Finally, once the graded death benefit waiting period has expired, the full death benefit would then be payable regardless of the cause of death.
Is your head spinning yet?
If this sounds confusing and is making you crazy, don’t fret, this is the kind of stuff that makes most “normal” person go a little crazy, which is why if you’re considering purchasing a graded death benefit for a loved one, just give us a call and we’ll be happy to walk you through your options.
Additionally, we also have the following articles that you may want to look at that focus on who we feel are the best final expense insurance companies out there as well as what a final expense life insurance policy is supposed to do.
TermLife2Go is an independent life insurance brokerage that is dedicated to helping folks find the best possible life insurance that they can qualify for. We do this by fostering relationships with dozens of the top rated life insurance companies in the industry whom we are then able to pick and choose from depending on who we feel will provide you with the best policy for your needs.
So what are you waiting for? Give us a call today and see what we can do for you!
Lastly, for those who would like to get an idea about how much their life insurance might cost before speaking with an agent, we would recommend that they check out our Final Expense Life Insurance Quotes page when you have a few moments to spare.