Guaranteed Life Insurance

Apply for Guaranteed Life Insurance Cover With Lending Expert!

If you’re looking for guaranteed life insurance then look no further than Lending Expert! Our team of approved life insurance experts can help provide you with the best advice. Get started today!

 

Key Points

• Guaranteed life insurance is sometimes known as ‘no questions asked life insurance’. 
• You cannot be refused cover with a guaranteed life insurance policy.
• Your loved ones will either receive a lump sum, or monthly payments.
• Most lenders will have a minimum term of between 24 and 36 months.

 

What Is Guaranteed Life Insurance?

Guaranteed life insurance is a type of life insurance policy where you cannot be refused cover. It has a set limitation period for benefit claims. In most cases, if you were to die within that agreed term time, your family would receive a payout of the premiums you paid, unless you died as a result of an accident.

Before taking out any kind of life insurance, we would always recommend talking to a professional about your options. You can chat to our expert advisors at Lending Expert to find the best life insurance policy for you. 

 

How Does Guaranteed Life Insurance Work?

Guaranteed life insurance works by paying a regular premium to your lender. This maintains your guaranteed life insurance policy, so if you stop paying the premiums, you’ll use the money you’ve paid in so far. This is because if you default on payments, the policy won’t pay out on your death. 

Usually, you’ll be able to take out cover with immediate effect. This is often followed by a ‘cooling off’ period in which you can cancel the policy without losing any money. 

It’s important to note that many insurers won’t pay out the full amount if you die of ill health soon after taking out your policy. This is due to the lack of medical checks associated with guaranteed life insurance. 

 

What Type of Pay Out Will I Get With Guaranteed Life Insurance?

With guaranteed life insurance, your beneficiaries will either get a lump sum, or an income.

• A lump sum – This is where your beneficiaries would receive the total amount in one go. This could help pay off your mortgage, or give the ones you leave behind a pot of money to live off.
• An income – This is where your loved ones would be paid an amount monthly as a replacement for your wage which could help your family pay their monthly bills, e.g. mortgage repayments or rent. However, the income usually stops at the end of the policy’s term.

 

What Are the Advantages of Guaranteed Life Insurance?

Many people choose guaranteed life insurance over other types of life insurance, and it’s clear to see why! Here’s some of the many advantages of guaranteed life insurance:

• No Medical Checks – you would be refused life insurance if you had a history of heart attacks or strokes, but with guaranteed life insurance this isn’t an issue.
• No Lifestyle Questions – lifestyle choices like being a smoker won’t impact your premiums.
• Guaranteed Payout – when you die, most policies pay out a fixed lump sum, as long as it isn’t within the first 12 or 24 months of cover. 
• Fixed Premium Payments – for most guaranteed life insurance policies, you’ll pay a fixed rate premium that will stay the same throughout the policy term.

 

What Are the Disadvantages of Guaranteed Life Insurance?

There are some disadvantages to guaranteed life insurance policies, including:

• Higher Premium Costs – as a result of the risk to the lender, guaranteed life insurance premiums are often much higher than those on standard life insurance policies.
• Limited Payouts – many policies limit the payout you can leave to your loved ones, often at around £25,000.
• Minimum Terms – if you die within a year or two of buying the policy, your loved ones will often receive the value of the premiums you’ve paid so far, rather than the full payout.

 

Does Guaranteed Life Insurance Always Pay Out?

If you die within the policy terms, guaranteed life insurance should always pay out. Most insurers will include a minimum term in the conditions. This means that if you died from ill-health before the minimum term was up, your loved ones would receive the amount you paid in premiums instead of the full payout.

This minimum term will differ between lenders, so it’s always important to fully check the terms you’re agreeing to. If you have any doubts, our expert advisors can help work through the best options for your situation.

 

Do I Need a Medical Exam To Take Out Guaranteed Life Insurance?

No, you don’t need a medical exam to take out guaranteed life insurance. This is why guaranteed life insurance is sometimes called ‘no questions asked life insurance’.

Guaranteed life insurance is often a popular choice for people who would otherwise struggle to get a life insurance policy, often due to pre-existing medical conditions. Not having to have a medical also makes the process of taking out life insurance much faster.

 

What Is the Maximum Age I Can Take Out Guaranteed Life Insurance?

The maximum age to take out a guaranteed life insurance policy varies between lenders, but it’s usually between 75 and 100. Most people are over 40 when they take out life insurance.

If you want some advice about applying for a guaranteed life insurance policy, our team of professionals at Lending Expert are here to help. Start your application today by getting in touch!