guaranteed life insurance

DrDark

Member
Joined
Mar 1, 2019
Messages
29
Reason
PALS
Diagnosis
09/2015
Country
US
State
Virginia
I would like to hear from any pALS or cALS or survivors who have any knowledge or experience with these kind of policies. I know that they are small benefit policies (> 40000$), and that the premiums are exorbitant, and they won't pay until after the owner has had the policy for two years. I am 50y old, and my symptoms started about six years ago. My fvc dropped about 20% from December until March. Statistically, I am living on borrowed time. Even if I pay $20k because I live for way longer than expected, $40k tax free is still a nifty return and if I don't make it to two years, my survivors get my premium back.

I have to be missing something... Please enlighten me!
 

swalker

Very helpful member
Joined
Dec 11, 2014
Messages
1,106
Reason
DX MND
Diagnosis
07/2014
Country
US
State
Colorado
I have no experience with guaranteed life insurance. But, I do have extensive experience in for-profit companies.

No for-profit life insurance company sets out to lose money.

While there is some remote possibility that you could find a crack in the system for one, I encourage you to be very, very cautious.

If you do move forward with such a policy, on average you can expect the insurance company to make money off of you rather than for your heirs to make money off of them.

Steve
 

Atsugi

Legendary member
Joined
Jan 11, 2011
Messages
5,186
Reason
Lost a loved one
Diagnosis
12/2010
Country
US
State
Florida
I had a very good experience with life insurance. You probably don't want "Guaranteed Issue".

..., on average you can expect the insurance company to make money off of you
Steve, et al.

As you all know, insurance is a gambling proposition, just like Las Vegas. The odds--over the long haul--are in the house's favor. So, I agree that on average, the insurance company makes more in premiums than they pay out in benefits. BUT, HOWEVER, some individuals might pay only a couple of years of premiums, so they end up being the financial winner. That exactly describes PALS.

I'm not a fan of "guaranteed issue" policies. But, there are also other "no questions asked" policies that legit major companies issue to gain that share of the market. There are some people who need coverage immediately without taking the time to get examined, and don't have the time to have an underwriter investigate and calculate the coverage, terms and premium, so this "no questions asked" insurance is issued pretty quickly. The premiums are higher, but not terrible. They can go up to 1 or 2 million in coverage.

Keep in mind that the agent is an independent company, not an employee of the insurance co.

When you call an agency and ask if they sell this type of policy, they will say yes. But if the agent then asks,"But you're in pretty decent health, right?" Just say "my dinner is burning" and hang up.

The policy I got was very big, cost was not a problem, and paid immediately. There was no "2 year" restrictions, except for suicide.

The best explanation of different policies is here: www dot NoPhysicalTermLife dot com.
 

Vincent

Senior member
Joined
Dec 30, 2013
Messages
931
Reason
PALS
Diagnosis
08/2014
Country
CA
State
ON
I know Knights of Columbus offer a couples policy based on the healthy partner. I believe the 2 year exclusion applies, and you have to be a member. If you are Catholic, just join, if not you get to become Catholic too!
Vincent
 

Nuts

Forum Supporter
Extremely helpful member
Joined
Feb 23, 2014
Messages
2,516
Reason
Lost a loved one
Diagnosis
01/2014
Country
US
State
North Carolina
Once Matt came to terms with his diagnosis, he set out on the insurance hunt. We already had good coverage, but he bought a couple of smaller, higher cost policies after doing the math. It was clear that he was not going to live long enough for us to pay out more than I would collect. It worked out as he predicted.
 

jonico

Member
Joined
Feb 21, 2017
Messages
24
Reason
CALS
Diagnosis
12/2014
Country
US
State
NY
Hi Dr. Dark,

I hope you are doing well! The only policy you are going to get as a pALS is a guaranteed issue whole life (GIWL) policy like Alex Trabek promotes with Colonial Penn. I think they only go up to $25K. Any other no questions asked, no medical exam policy is still going to take your medical records into consideration. It can't hurt to look into it, but I can't fathom an insurance company giving a pALS coverage of any magnitude with no exclusion period.

The GIWL companies probably make a killing selling to the elderly who have limited options, but are healthy enough to live another 15 to 20 years or longer. Like others have said any insurance is essentially a gamble, but with this type of policy, sad to say, the odds are in a pALS favor. These policies are regulated by your state insurance department and unless you live maybe 20 years, you can't "lose" financially. If you live 15 or so years it will prove to be a pretty poor "investment"...but this isn't an investment. You will have come out ahead with the extra years of life!

This is standard and predictable... If a pALS passes in the first two years the beneficiary receives the premiums plus 10% or so. If the pALS lives two years or longer the beneficiary receives $25K. Average premiums will be around $100 per month. Just do the math...it's easy to predict what it will cost beyond 2 years. One can't lose financially at 2 years or less, and you still come out ahead for a number of years beyond the 2 year point.
 

DrDark

Member
Joined
Mar 1, 2019
Messages
29
Reason
PALS
Diagnosis
09/2015
Country
US
State
Virginia
Thank you all for your responses. I am looking into this further, and am very distrustful of anyone trying to sell me anything, especially if it sounds too good to be true. I found a website for a firm called "effortless insurance," and although the name itself brings a skeptical smile to my face, there is a section called "top 4 guaranteed issue life insurance companies" that piques a grain of my curiosity. I will post what else I can find out as I pursue this.
 
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