A type of life insurance (usually whole life) that’s issued based on guaranteed issue underwriting. Unlike most forms of life insurance, guaranteed issue always has a waiting period (black out period) where death benefits will not be paid. Typically, it’s 2 years, but might be 3 years.
If the applicant/insured dies within this waiting period, the beneficiaries receive a refund of all premiums paid, plus interest.
See: Guaranteed Issue Underwriting
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