What Is Guaranteed Issue Life Insurance?

guaranteed life insurance

Most life insurance policies require that you get a health examination. 

Guaranteed issue life insurance, on the other hand, has no such prerequisite. There are no health questions to answer, no medical examination to partake in — you don’t even need your insurance provider to check out your medical records. 

Obviously, there are going to be benefits and drawbacks to a policy like this, so let’s explore the ins-and-outs of guaranteed issue life insurance and what they’ll mean for you.

Guaranteed Issue Life Insurance Explained

Also known as guaranteed acceptance life insurance, this variety of insurance is a whole life policy, meaning that it is a type of permanent policy that lasts for your entire life, offers a death benefit, and has a savings component that may also accumulate value over time.

Unlike most other whole life policies, though, the fact that guaranteed issue insurance waives the medical inspection requirement also means that there’s a waiting period for going into effect. If you happen to expire during that waiting period, your family won’t receive the death benefit, but the insurance provider will refund your premiums (with interest).

Now, you might be wondering who this type of insurance is a good fit for, and the answer is older senior citizens. Specifically, guaranteed issue life insurance works for individuals who cannot qualify for most traditional policies. They might have medical conditions that price them out of (or make it impossible to obtain) other types of whole life policies. Alternatively, they might have limited budgets and just can’t afford any other policies.

Regardless, though, anyone applying for guaranteed life insurance should be comfortable with the stipulations (as well as the maximum benefit limits of about $25,000). Should you decide to go this route, you’ll also want to keep in mind that the costs for guaranteed life insurance are substantial (since it’s accommodating to high-risk applicants). You can expect to pay, on the high-end, about $200/month to keep one of these policies going.

Applying for Guaranteed Issue Life Insurance

When you apply for a guaranteed issue life insurance policy, you’ll typically start by contacting a life insurance agent and filling out a basic application with some personal details. You won’t have to worry about a medical exam or health questions, so in almost all cases, your application will be approved and then you’ll start paying your premiums.

Remember to Weigh Your Options

Guaranteed issue life insurance is convenient because it’s almost impossible to get turned down for, but you’ll have to weigh that fact against its high costs and low coverage amounts. If you can qualify for other policies you might want to explore those first before settling on guaranteed issue life insurance as your final option.