Can I Buy Life Insurance for Someone that is Terminally Ill?
Answer:
Possibly. Look for “guaranteed issue” insurance policies.


This type of policy doesn’t require medical exams, tests, or questions. Because of the possibility of an imminent death, these policies usually limit the death benefits during the first two or three years. Once the “grading” period has ended, the death benefits will increase. This means if the predetermined grading period is two years and the person survives beyond that time, their policy will pay full death benefits when they eventually die.

Policies vary from company to company. For example, one company may return the premiums paid with interest if the death occurs within two years of the issue date while others might pay 30% percent of the death benefit if the death occurs in the first year with increases for each year of survival.

If the terminally ill person dies from an accident before the grading period has passed, most insurance companies will pay the full death benefit.

As with all life insurance policies and different state laws, you may need to obtain signed approval of the insured before purchasing a policy.
  more Q&A sessions like this

Trackback(0)
Comments (0)add comment

Write comment
You must be logged in to post a comment. Join for free or Login.

busy