Guaranteed Issue Life Insurance

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

What Is Guaranteed Issue Life Insurance?

Guaranteed issue insurance is a type of life insurance policy typically designed for people with health conditions that make it difficult to get other types of life insurance. Guaranteed issue insurance is usually a permanent life insurance policy. Also known as Guaranteed Acceptance Life Insurance or Guaranteed Life Insurance.

  • Definition: Guaranteed issue life insurance is a whole life insurance policy that doesn’t require a medical exam or any health-related questions. The insurer won’t ask for your medical records or prescription list.
  • Waiting Period: These policies usually have a 2-3 year waiting period. If the insured dies from causes other than an accident during this time, the policy doesn’t pay the full death benefit. Instead, it returns the premiums paid with some interest.
  • Target Audience: It’s ideal for high-risk individuals, especially those with medical conditions that make other insurance types either unaffordable or unattainable. As of 2022, 106 million adults don’t have life insurance, highlighting the need for such policies.
Guaranteed Issue Final Expense

Key Features Of Guaranteed Acceptance Life Insurance

  • Guaranteed Acceptance: No one is turned down based on health conditions or medical history.
  • Lifetime Coverage: These policies last for the insured’s lifetime, but the death benefit is usually between $2,000 and $25,000.
  • Fixed Premiums: The premium amount is set at the time of purchase and doesn’t change.
  • Cash Value: Some policies can build a cash value, accessible through a policy loan.
  • Eligibility: Typically, individuals between the ages of 40 and 80 are eligible. Some carriers might have state residency requirements.

How To Buy Guaranteed Issue Life Insurance

When buying life insurance, be aware that most policies have a graded period of two to three years. If you die during this period, your beneficiary may not get the full death benefit. Instead, they will get back the premiums you paid with some interest. After that period is over, they will get the full benefit.

Does Guaranteed Acceptance Life Insurance require a physical examination?

You might have to take a medical exam to get typical life insurance. This is because insurance companies need to know how long you are likely to live to determine how much your premiums will be.

Guaranteed issue life insurance is different because it is for older people who have health concerns. If you have a medical history, you will not be turned down for insurance. You also do not have to worry about doing a medical exam or answering health questions. However, you must meet other requirements, such as age limits, to qualify for this type of insurance.

Because insurance companies don’t take your health into account when issuing a guaranteed issue policy, the policies are more expensive than other types of insurance. As a result, the coverage you can get is usually limited to around $25,000.

How does Guaranteed Life Insurance Work?

When you apply for guaranteed issue life insurance, your insurance company will ask a few questions to determine eligibility. Most people who apply for this policy cannot be turned down unless they fall below or above an age range requirement. Since there is no medical exam, health questions, or review of your medical records, the application process is generally quick and straightforward.

When you buy your policy, you will also choose the amount of coverage. This is called the death benefit. The death benefit is a graded benefit, which means that it will not start to pay out until after a certain period has passed. During that time, if you die, your insurance company will refund your premiums with interest to your family.

If you die during the graded period, your beneficiaries will receive the total payout. The beneficiary is the person who gets your death benefit and can be a spouse, child, or anyone else you choose.

When should you buy a guaranteed issue policy?

Some people may not be able to buy other types of life insurance because of their age or medical conditions. Finding peace of mind for yourself and your family can be challenging if this is you.

You don’t need to be in perfect health to qualify for other policies, like term life or simplified issue life insurance. However, you might be a better candidate for guaranteed issues if you have serious health issues. These conditions may include the following:

Related Reading: How to get life insurance for high-risk jobs like adult entertainment

Guaranteed Issue Life Insurance

Should You Consider Guaranteed Issue Life Insurance?

  • Yes, if:
  • No, if:
    • You’re in good health and can get other insurance types.
    • You need a higher death benefit.
    • You want immediate coverage without a waiting period.
    • You don’t meet the age requirements.

Guaranteed Issue Final Expense Life Insurance

Guaranteed issue insurance is a type of insurance that will help pay for funeral and burial expenses without taking away any money from your other assets. The payout from the insurance is given to your beneficiary without any conditions, so they can choose how to use the money. People often use these funds for the following:

  • Funeral expenses
  • Medical bills
  • Debts
  • Daily living expenses for the family

Guaranteed Issue Life Insurance Cost

These are sample monthly payment rates based on age, gender, coverage amount, Preferred status, and non-tobacco consumers.


Simplified issue life insurance vs. guaranteed issue life insurance

Simplified and guaranteed issue life insurance does not require a medical exam. You will still need to fill out a health questionnaire. This includes significant illnesses or surgeries, family medical history, and prescribed medications. Simplified issue life insurance is suitable for people who want to get coverage quickly.

Simplified-issue life insurance policies have fewer health requirements than ordinary permanent or term life insurance policies but more than guaranteed-issue life insurance policies. So if you don’t want to take a medical exam and don’t have any significant concerns about your medical history, this policy could be a good choice for you.

Guaranteed Life Insurance Quotes

Feel free to contact us for a guaranteed life insurance quote. The service is free of charge.

Life Insurance Inquiry

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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