You can, however, be refused the payment you think you are investing in.
It's a gamble.
Of course, all insurance is a gamble. That more people will buy and pay in than will (whatever) and need to be paid. This is how insurance companies make money.
Let us suppose that you need life insurance and can't get it through the usual agencies. Maybe you have a chronic condition which will (sooner rather than later) become terminal. You can't get life insurance, but you know that you -- or your family -- really need for you to have it.
So, you look into this "cannot be turned down" policy.
The commercials sound so good. "Only 9.97 per unit per month. About 35 cents a day."
BUT: a unit is $1,000.00 .
Even a cremation setup costs around 2500--3000. So, even for an inexpensive service, you need three units per month. (A traditional funeral, done cheaply, runs between 5000 and 7000 .)
The price of your insurance has just trebled. At a minimum.
That leaves little if anything to help your family survive. You may have put yourself more at risk because you are trading in one of your medicines to be able to provide for your family after you have passed.
The next phase has to do with your life expectancy.
If you die within the first year, your family gets nothing.
If you die before the second year ends, the insurance company, after having used your money for investment and interest profits, will generously payout to your loved ones every penny that you actually paid them.
Not the number of units you purchased; not the coverage you were buying. Just what you paid for it. 24 months at $30 is $720.
There are different companies with different time constraints -- one is six months/one year -- but they all do have these limits. Even your more standard policies have terms and restrictions as to what they will pay out, and when and why.
Add in all the paperwork and problems your family will have to deal with, as well.
Ask yourself if this is truly the best choice you can make for your family.
Ask yourself if you think you will live long enough for them to profit from your investment.
It's a terrible burden to be dying and know you haven't left your family any resource for your final needs. I understand that -- you don't know how well I understand that.
I just ask that, if you choose to go this route, please understand what you are doing. Please understand what your family will or will not collect.
The odds are not in your (their) favor.
