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5. Discuss the concept of guaranteed issue and its associated benefits and risks, and how those...

5. Discuss the concept of guaranteed issue and its associated benefits and risks, and how those risks might be mitigated.

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Answer #1

Guaranteed issue is a term used to describe a type of health insurance. In such a health insurance, the insurance is provided to any eligible candidate irrespective to health status and medical histories.

Benefits include :

  • It is good for people who are precluded from enrolling in better policies
  • Benefits people who can’t purchase life insurance through their employers.

Risks include :

  • high premiums : it charges more for less
  • do not pay out if the insured dies within the first one or two years of the policy

Risks can be mitigated through lowering the premium rates and government supervision on such types of insurance.

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