When it comes to helping folks, who have been diagnosed with hereditary nephritis or Alport syndrome find a life insurance policy that they will be able to qualify for, it really all comes down to how much insurance the individual is looking for.
This is mainly because…
Alport syndrome is one of those pre-existing medical conditions that is going to trigger an “automatic” decline when applying for a traditional term or whole life insurance policy.
Which means that…
In order to help folks with Alport syndrome find coverage, we’re going to need to look to some “alternative” products such as a guaranteed issue life insurance policy or an accidental death policy if we want to be able to qualify for coverage.
Now we’ll be the first…
To admit that guaranteed issue life insurance policies and accidental death policies aren’t always the perfect fit for most people. In fact, if an individual is eligible for a traditional term or whole life insurance policy, we’ll rarely even suggest that an individual consider purchasing a guaranteed issue or accidental death policy.
But that’s just not the case…
For individuals who have been diagnosed with hereditary nephritis. You see, for individuals who have been diagnosed with hereditary nephritis, traditional life insurance policies simply aren’t an option which is why we need to pursue alternative options which consider an applicant’s actual health in the “underwriting” process.
So, let’s go back to the most important question…
“How much life insurance are you looking for?”
Knowing why you’re looking for insurance will often dictate which “type” of alternative product may make the most sense for you which is why we always want to know why you’re looking to purchase a life insurance policy.
Are you looking to:
- Cover the cost of a mortgage?
- Protect future earnings that would be lost due to a premature death?
- Protect a spouse or child?
- Or simply cover the cost of one’s own burial?
From here, we can generally get a “feel” for which “type” of insurance policy will work out best for you.
But, at the end of the day…
We’re not the ones making the decision, you are! So, let’s just take a moment and discuss the Pros and Cons of both a guaranteed issue life insurance policy and an accidental death policy so that you can better understand if either policy will work for you.
Accidental Death Policies.
We want to start off by first discussion accidental death policies because these policies will generally have a higher coverage limit (up to $500,000) and are generally easier to understand.
Now the first thing that we want individuals to understand about accidental death policies is that they are NOT TRUE-LIFE INSURANCE POLICIES. Accidental death policies are ACCIDENT policies. The provide insurance against accidental causes of death.
Meaning that if you die from a “natural” cause of death caused by some type of illness, your accidental death policy will not:
- Pay a death benefit to your beneficiaries.
Examples of “natural” causes of death would include:
- Heart disease,
That being said however, if you were to die from an “accidental” cause of death your accidental death policy would pay out in full.
Examples of “accidental” causes of death would include:
- Slip and fall accidents.
- Motor vehicle accidents.
- Natural disaster,
- Victim of crime,
Now would most people want to have an insurance policy that would cover them for both natural and accidental causes of death?
Sure, they would! But unfortunately, most of those types of policies will require you to be able to qualify “medically”. However, there is one exception to that rule which we will discuss now.
Guaranteed Issue Life Insurance Policies.
Guaranteed issue life insurance policies are life insurance policies that will not require an applicant to take a medical exam or answer any health-related medical questions. In fact, in order for an individual to be able to qualify for a guaranteed issue life insurance policy, they’ll generally only need to:
- 1st Be a US citizen.
- 2nd Be over the age of 40 and less than 85.
- 3rd Live in a state where guaranteed issue life insurance policies are offered.
Which is why…
Guaranteed issue life insurance policies are great options for those who have been diagnosed with Alport syndrome.
That being said however, there are 3 major disadvantages to purchasing a guaranteed issue life insurance policy that individuals should be aware of before considering this option. So, let’s take a look at those disadvantages now.
Small policy limits. Most guaranteed issue life insurance policies are going to max out at about $25,000 dollars in coverage. So, if you’re looking for more coverage than this, chances are, a guaranteed issue life insurance policy may not be a good fit for you.
Dollar for dollar, guaranteed issue life insurance policies tend to cost more than other traditional types of life insurance policies. Now this does not mean that guaranteed issue life insurance policies are going to be “super” expensive, it just means that if you were able to “medically” qualify for a traditional life insurance policy, chances are you would receive more coverage for the same amount of money.
Graded Death Benefits. Graded death benefits are “clauses” written into guaranteed issue life insurance policies which states that your newly purchased guaranteed issue life insurance policy WILL NOT provide coverage due to death caused by NATURAL causes for a set period of time.
Uggh! That doesn’t sound good, so let’s take a moment to explain…
First of all, let’s define what a “natural” cause of death is. Natural causes of death would be a “cause” that is related to some type of illness or disease. Examples might include:
- Heart disease,
So… if you purchase a guaranteed issue life insurance policy, these “types” of causes of death would not be covered until the graded death benefit period expired.
So… how long is the graded death benefit period?
The “length” of a graded death benefit period will vary depending on which insurance company you choose to purchase your guaranteed issue life insurance policy with, but in general, most graded death benefits will usually last 2-3 years.
Why would anyone purchase a life insurance policy that contained a graded death benefit?
This is a great question, and one that can be easily answered. You see, for most, guaranteed issue life insurance policies are a “last resort” type of life insurance policies.
These are life insurance policies which are not going to require that you take a medical exam or answer any health-related questions which means that even individuals with really serious health conditions can qualify!
Given the option between NO COVERAGE vs a policy with a graded death benefit, for many, deciding to purchase a guaranteed issue life insurance policy is a great option.
What if I die of an “accidental” cause of death during the graded death benefit waiting period?
Accidental causes of death such as a slip and fall, motor vehicle accident or natural disasters are causes of death that are covered immediately are not subject to the graded death benefit, simply because accidental causes of death are causes that can’t be “predicted”.
Lastly… Many folks will also ask what happens should they die during a graded death benefit waiting period of natural causes?
In cases like these, most life insurance companies will have some “type” of policy that will include returning a portion (or 100%) of the premium paid by the deceased to the deceased’s beneficiaries.
Each company will have their own rules and regulations in cases like these, we recommend that you fully understand the graded death benefit clause of the different insurance companies that you are considering to be sure that you’re making the right decision for you and your family.
Confused? Don’t be!
Here at TermLife2Go, our only goal is to help you find the best life insurance policy that you can qualify for. So, if it turns out that you can qualify for a traditional term or whole life insurance policy, great! We can help you out with that.
If it turns out that you’ll need to pursue an alternative life insurance product like a guaranteed issue life insurance policy, we can help you out with that too! You see here at TermLife2Go, because we’re an independent life insurance brokerage, we’re able to work with dozens of different life insurance companies.
So, when it comes time to helping you find what you’re looking for, we should have plenty of options for you to choose from. So, what are you waiting for? Give us a call today and see what we can do for you!
You can also…
Visit our Final Expense Life Insurance Quotes page which will allow you to see quotes from all the final expense companies that we are currently working with.