Check Out “Guaranteed” Policies Carefully

You’ve no doubt seen the ads on television.  These are policies that have almost no underwriting questions other than the applicant’s age and sex, and you are assured that your coverage is guaranteed.

This is an expensive option, however, based on your cost per $1,000 of coverage.  And before you sign on, be certain that you understand the contract’s restrictions.  These may include only a return of premiums paid if death occurs during the first year or two of the policy.  A full payout of the face amount of the policy may only occur in the third year.