Buying life insurance when you are a senior used to be a hard thing to do, but now there are many companies that offer Guaranteed Acceptance Life Insurance to people who would not otherwise be able to buy life insurance due to their age, health or financial situation. With Guaranteed Acceptance Life Insurance there is no physical exam requirements or questions about the applicants health. These plans usually have a limited benefit period. If the death of the policyholder occurs in the first few years a reduced benefit is paid, or the insurance company returns the premiums already paid with the accumulated interest. This is how insurance companies are able to guarantee acceptance.

There are a few disadvantages to guaranteed life insurance. Most of these types of policies are designed to provide only funeral expenses, so most do not sell policies with a benefit value of more than $15,000 to $20,000. The cost of guaranteed life insurance policies are also high, because the company has no other information but age and gender on which to base the premiums. These two disadvantages can make guaranteed life insurance very undesirable, especially since you can end up paying the insurance company more in premiums than the death benefit of the plan. That means that the insurance policy has a worse performance than a savings account. The National Association of Insurance Commissioners is actually looking into this problem to find out if anything should be done.

Guaranteed life insurance policies also have a feature called