Best Guaranteed Issue Life Insurance Companies

Guaranteed Acceptance

No Health Questions

Fast Approval

Permanent Protection

Guaranteed issue life insurance, also known as guaranteed approval life insurance, is a form of whole life insurance coverage. In short, a guaranteed issue life insurance requires minimal underwriting requirements and you cannot be denied coverage.

It sounds too good to be true, doesn’t it?

It’s true. Guaranteed issue life can be a great product, but….

Of course, there are qualifications, it is insurance. Insurance can be confusing, so we’ve created this article to walk you through the details of Guaranteed Issue Life policies.  Here’s a summary of what we will cover:

  • What is a Guaranteed Issue Life policy?
  • Who are the best carriers that offer this coverage?
  • What are the Pros & Cons of Guaranteed Issue?
  • Who is the perfect person for Guaranteed Issue policies?
  • What you should do?

What is Guaranteed Issue Life Insurance?

Guaranteed issue life is a type of whole life insurance.  

There are two basic types of life products, permanent, and term. The easiest way to distinguish is to remember that term insurance has an expiration date and permanent insurance does not. Within the category of permanent policies, there are many variations and whole life is one of those variations.

Whole life insurance does not expire and also contains an investment component known as the cash value account. A portion of your premium with be allocated to the overall cost of the life insurance.

The other portion goes into a “savings” account and will grow over time. Many whole life policies will have options on how you can use the cash during the life of the policy.  

There are no underwriting hoops to jump through. No medical exams to take. You will be accepted no matter what. Because of this, many companies will often call it guaranteed acceptance whole life or guaranteed approval whole life.  

You can receive coverage quickly without any long underwriting periods.

There are other features to consider with Guaranteed Issue Life: 

Guaranteed Approval

As previously mentioned, this is the only life insurance coverage that will accept anyone regardless of any past or current health conditions. There are no labs, exams or health questions. You cannot be turned down as long as you are within the age guidelines for coverage.

Death Benefit Amount

Death benefit amounts range from $5,000 – $25,000 maximum. In many cases, spouses can also qualify for up to $25,000 of coverage if between the ages of 40-80.

2-Year Graded Death Benefit

When applying for guaranteed issue life insurance, it is important to understand the 2-year graded death benefit period.

This feature can be the most confusing part of guaranteed issue life insurance. Because life coverage is being offered without question, there is a risk to the insurance company. To protect themselves, life companies have built-in a graded benefit portion to the policy.

During the first two years, the total amount of insurance is not available. If the covered individual dies during this “probationary” period, the beneficiaries receive either a percentage of the total death benefit or in most cases 100% of all premiums paid plus 10% interests on the premiums paid.

One exception to this is if death has occurred due to an accident within the first 2 policy years. Accidental death will payout a full death benefit regardless of the policy year.

After the 2nd policy year, the full death benefit will be paid to your beneficiary regardless of how death has occurred, meaning either accidental or health-related. The policy death benefit paid to the beneficiary will be tax-free

Living Benefits

Living benefits a term that is associated with life insurance. If a policy has a living benefits feature, it allows the insured to access their policy death benefit due to illness that is typically classified as chronic, critical or even terminal. 

Living benefits are commonly found on life insurance policies that are fully underwritten. However, you can now find the chronic illness and terminal illness living benefits features on guaranteed issue life insurance.

Policy Add-ons (Riders)

Although not commonly found with guaranteed issue whole life insurance policies, there are a few companies that offer riders. These riders can provide a child or even grandchild with coverage. Other riders can provide an extra death benefit if both spouses apply for coverage at the same time. 

Fixed Premiums

Guaranteed issue life insurance offers a fixed premium that is guaranteed never to increase and typically last up to age 120.

Designed for people ages 50-85

This type of life insurance is designed and available to people between the ages of 50-85. A very small amount of companies have begun to open the coverage up to those outside the typical 50-85 age guidelines making it available as young age 0. Again this is not very common as there is only one company known to offer this who is listed below.

Policies Have a Cash-Value Investment Component

With guaranteed issue life insurance you can expect to accumulate cash value growth over time. 

Comes with 30-Days Money Back

This is what is known as the “free-look” period. During the first 30 days of owning a life insurance policy, you have the option to cancel with no questions asked for a full return of premiums. 

After the first 30 days, you may cancel at any time but you will only receive any unused premiums. So for example, let’s say you pay monthly and you decide to cancel 15 days into the billing cycle. The refund will be the balance of the remaining 15 days of the cost of insurance. 

Created to Provide for Funeral and Final Expenses

Sometimes these policies are marketed as final expense or burial insurance. The low coverage amounts are designed to protect the families from the rising costs of funerals and surrounding expenses.

These are the product highlights. Let’s look at the individual companies and their specific products. Each product has a slight difference and will help you understand the guaranteed issue life product in more detail.

2019 Best Guaranteed Life Insurance Companies

Guaranteed issue life insurance is not offered by all life insurance companies. It is nowhere near as popular as term life insurance, universal life insurance or even a traditional whole life insurance policy. 

Because of this, it makes for a tough search process for anyone looking for this type of life insurance coverage.

But rest assure Top Quote Life Insurance has you covered. We have put together a detailed list of the best-guaranteed issue life insurance companies to include coverage details as well as sample rates.

AIG Guaranteed Issue

AIG Guaranteed Issue Life InsuranceA.M. BEST’S RATING: (A) Excellent Rating

POLICY NAME: Guaranteed Issue Whole Life Insurance (GIWL)

MINIMUM COVERAGE AMOUNT: $5,000

MAXIMUM COVERAGE AMOUNT: $25,000

ISSUE AGES: Ages 50-85

APPLICATION TYPE: Paper or Electronic

APPROVAL TIME: 15 Minutes

POLICY RIDERS: None

GRADED DEATH BENEFIT PAYOUT:

  • Policy Years 1-2 = The death benefit is equal to 100% of all premiums refunded plus 10% interest.

FULL DEATH BENEFIT PAYOUT:

  • 100% of the full death benefit payable beginning policy year 3.
POLICY FEATURES: AIG guaranteed issue life insurance comes with two built-in living benefit options at no additional costs. The first living benefit option is the chronic illness acceleration benefit. This living benefit option will pay out a lump payment of up to 25% of the death benefit due to a qualifying chronic illness (unable to perform 2 out of the 6 activities of daily living).
 
The second living benefit is the terminal illness benefit. If diagnosed with a qualifying terminal illness (24-month life expectancy or less), up to 50% of the death benefit will be paid out.
 

AIG Guaranteed Issue Monthly Sample Rates

SAMPLE MONTHLY PREMIUMS (MALES)

AGE

$5,000

$10,000

$15,000

$20,000

$25,000

50$26.96$51.92$76.89$101.85$126.81
55$29.45$56.90$84.35$125.17$155.96
60$32.58$63.17$93.75$138.18$172.22
65$43.08$84.15$125.23$184.61$230.27
70$50.49$98.18$146.27$215.24$268.55
75$70.28$138.55$206.83$303.31$378.64
80$124.22$246.44$368.66$538.70$672.87
85$158.91$315.82$472.73$692.70$865.38

SAMPLE MONTHLY PREMIUMS (FEMALES)

AGE

$5,000

$10,000

$15,000

$20,000

$25,000

50$18.92$35.83$52.74$73.93$91.91
55$22.62$43.23$63.85$95.34$118.68
60$26.01$50.02$74.03$110.15$137.19
65$31.78$61.57$91.35$135.37$168.72
70$38.26$74.52$110.78$163.60$204.00
75$54.59$107.17$159.75$234.85$293.07
80$88.71$175.42$262.13$383.77$479.22
85$100.53$199.06$297.59$437.18$545.98

Coverage not available in the following states: NY 

Americo Guaranteed Issue

Americo Guaranteed IssueA.M. BEST’S RATING: (A) Excellent Rating

POLICY NAME: Ultra Protector III

MINIMUM COVERAGE AMOUNT: $2,000

MAXIMUM COVERAGE AMOUNT: $10,000

ISSUE AGES: Ages 50-75

APPLICATION TYPE: Paper or Electronic

APPROVAL TIME: 48 Hours

POLICY RIDERS: None

GRADED DEATH BENEFIT PAYOUT:

  • Policy years 1-3 = 100% of all premiums refunded plus 6% interest.

FULL DEATH BENEFIT PAYOUT:

  • 100% of the full death benefit payable beginning policy year 4

Americo Guaranteed Issue Sample Rates

SAMPLE MONTHLY PREMIUMS (MALES)

AGE

$2,000

$4,000

$6,000

$8,000

$10,000

50$21.99$40.19$58.38$76.58$94.77
55$25.70$47.60$69.50$91.40$113.30
60$29.40$55.01$80.61$106.22$131.82
65$34.66$65.52$96.37$127.23$158.09
70$47.21$90.61$134.02$177.42$220.83
75$63.57$123.34$183.12$242.89$302.66

SAMPLE MONTHLY PREMIUMS (FEMALES)

AGE

$2,000

$4,000

$6,000

$8,000

$10,000

50$17.75$31.70$45.65$59.60$73.55
55$20.59$37.38$54.17$70.96$87.75
60$23.43$43.06$62.69$82.32$101.95
65$27.46$51.12$74.78$98.44$122.09
70$34.52$65.23$95.95$126.67$157.39
75$46.10$88.40$130.70$173.01$215.31

Not available in the following states: MS, NY, VT & WA

Columbian Guaranteed Issue

Columbian Guaranteed IssueA.M. BEST’S RATING: (BB+) Good Rating

POLICY NAME: Guaranteed Issue Whole Life

MINIMUM COVERAGE AMOUNT: $2,500

MAXIMUM COVERAGE AMOUNT: $25,000

ISSUE AGES: Ages 25-80

  • Ages 25-44 can qualify for $5,000 up to $10,000
  • Ages 45-80 can qualify for $2,500 up to $25,000

APPLICATION TYPE: Paper or Electronic

APPROVAL TIME: 48 Hours

POLICY RIDERS: None

GRADED DEATH BENEFIT PAYOUT:

  • Policy year 1 = 100% of all premiums refunded plus 5% interest
  • Policy year 2 = 100% of all premiums refunded plus 10% interest
  • Policy year 3 = 75% of the full death benefit amount

FULL DEATH BENEFIT PAYOUT:

  • 100% of the full death benefit payable beginning policy year 4

Columbian Guaranteed Issue Sample Rates

SAMPLE MONTHLY PREMIUMS (MALES)

AGE

$5,000

$10,000

$15,000

$20,000

$25,000

50$33.32$63.16$93.00$122.84$152.68
55$35.15$66.82$98.48$130.15$161.82
60$41.67$79.87$118.06$156.25$194.44
65$51.16$98.83$146.51$194.18$241.86
70$67.64$131.80$195.97$260.13$324.29
75$91.52$179.57$267.61$355.66$443.70
80$120.76$283.03$355.31$472.58$589.86

SAMPLE MONTHLY PREMIUMS (FEMALES)

AGE

$5,000

$10,000

$15,000

$20,000

$25,000

50$27.62$51.76$75.91$100.05$124.19
55$28.32$53.16$78.00$102.83$127.67
60$32.76$62.03$91.31$120.58$149.86
65$39.76$76.04$112.32$148.60$184.88
70$53.24$103.01$152.77$202.54$252.30
75$72.47$141.46$210.45$279.44$348.44
80$100.88$198.27$295.67$393.07$490.46

Not available in the following states: MS, NY, VT & WA

Fidelity Guaranteed Issue

Fidelity Guaranteed IssueA.M. BEST’S RATING: (A-) Excellent Rating

POLICY NAME: Rapid Decision Guaranteed Issue Whole Life

MINIMUM COVERAGE AMOUNT: $5,000

MAXIMUM COVERAGE AMOUNT: $20,000

ISSUE AGES: Ages 50-85

APPLICATION TYPE: Electronic

APPROVAL TIME: 24-48 Hours

POLICY RIDERS: None

GRADED DEATH BENEFIT PAYOUT:

  • Policy years 1-3 = 100% of all premiums refunded plus 5% interest

FULL DEATH BENEFIT PAYOUT:

  • 100% of the full death benefit payable beginning policy year 4

Fidelity Guaranteed Issue Sample Rates

SAMPLE MONTHLY PREMIUMS (MALES)

AGE

$5,000

$10,000

$15,000

$20,000

50$29.81$55.28$80.74$106.21
55$34.42$64.48$94.55$124.62
60$39.13$73.92$108.70$143.48
65$46.21$88.08$129.94$171.81
70$57.68$111.00$164.33$217.66
75$82.68$161.00$239.33$317.65
80$114.67$225.00$335.32$445.65

SAMPLE MONTHLY PREMIUMS (FEMALES)

AGE

$5,000

$10,000

$15,000

$20,000

50$23.40$42.46$61.51$80.56
55$27.36$50.36$73.37$96.38
60$31.33$58.32$85.30$112.28
65$36.78$69.22$101.65$134.08
70$42.71$81.08$119.44$157.80
75$60.65$116.95$173.26$229.56
80$85.67$167.00$248.32$329.64

Not available in the following states: NY & WY

Gerber Guaranteed Issue

Gerber Guaranteed IssueA.M. BEST’S RATING: (A) Excellent Rating

POLICY NAME: Gerber Guaranteed Life

MINIMUM COVERAGE AMOUNT: $5,000

MAXIMUM COVERAGE AMOUNT: $25,000

ISSUE AGES: Ages 50-80

APPLICATION TYPE: Paper or Electronic

APPROVAL TIME: 24-48 Hours

POLICY RIDERS: None

GRADED DEATH BENEFIT PAYOUT:

  • Policy Years 1-2 = 100% of all premiums refunded plus 10% interest

FULL DEATH BENEFIT PAYOUT:

  • 100% of the full death benefit payable beginning policy year 3

Gerber Guaranteed Issue Sample Rates

SAMPLE MONTHLY PREMIUMS (MALES)

AGE

$5,000

$10,000

$15,000

$25,000

50$22.50$44.09$65.68$108.85
55$29.42$57.93$86.44$138.24
60$32.40$63.89$95.38$158.35
65$43.04$85.16$127.28$211.52
70$50.05$99.18$148.32$246.58
75$70.22$139.52$208.82$347.42
80$124.12$247.32$370.52$616.91

SAMPLE MONTHLY PREMIUMS (FEMALES)

AGE

$5,000

$10,000

$15,000

$25,000

50$17.69$34.47$51.24$84.79
55$22.60$44.27$65.95$109.31
60$25.99$51.06$76.13$126.27
65$31.76$62.61$93.45$155.15
70$38.22$75.53$112.84$187.46
75$54.54$108.17$161.79$269.04
80$88.64$176.37$264.09$439.54

Not available in the following states: MT

Great Western Guaranteed Issue

Great Western Guaranteed IssueA.M. BEST’S RATING: (A-) Excellent Rating

POLICY NAME: Guaranteed Assurance Whole Life Insurance

MINIMUM COVERAGE AMOUNT: $1,000

MAXIMUM COVERAGE AMOUNT: $40,000

ISSUE AGES: (Ages 40-80)

APPLICATION TYPE: Paper or Electronic

APPROVAL TIME: 24-48 Hours

POLICY RIDERS:

  • Accelerated Death Benefit Rider: Pays out the full death benefit if diagnosed with a terminal illness and have a life expectancy of fewer than 12 months to live. It can also advance the death benefit if diagnosed with requiring assistance with two Activities of Daily Living. This rider is available at no additional cost. (Only available with Assurance Plus plan).
  • Dependent Child & Grandchild Rider: At an extra cost of $1 per month, this rider will pay a death benefit of $2,500 on the first death of a dependent child or grandchild.
  • Spousal Bonus Rider: Pays out an additional death benefit of $1,000 when both spouses apply for coverage at the same time. This rider is available at no extra cost but does require that the minimum death benefit is $10,000.  

GRADED DEATH BENEFIT PAYOUT:

  • Policy years 1-2 = 100% of all premiums refunded plus 10% interest

FULL DEATH BENEFIT PAYOUT:

  • 100% of the full death benefit payable beginning policy year 3

ASSURANCE PLUS: A second plan that is available to those who can answer “no” to three medical questions on the application. Applicants who qualify for this plan will qualify for immediate death benefit coverage along with an extra 20% bonus to the original selected death benefit amount. 

Great Western Guaranteed Issue Sample Rates

SAMPLE MONTHLY PREMIUMS (MALES)

AGE

$5,000

$10,000

$15,000

$25,000

$40,000

45$29.17$55.42$81.67$134.70$212.92
50$31.25$59.58$87.92$144.58$229.58
55$33.75$64.58$95.42$157.08$249.58
60$39.17$75.42$111.67$184.17$292.92
65$47.50$92.08$136.67$225.83$359.58
70$61.25$119.58$177.92$294.58$469.58
75$80.83$158.75$236.67$392.50$626.25
80$115.42$227.92$340.42$565.42$902.91

SAMPLE MONTHLY PREMIUMS (FEMALES)

AGE

$5,000

$10,000

$15,000

$25,000

$40,000

45$24.58$46.25$67.92$111.25$176.25
50$26.25$49.58$72.92$119.58$189.58
55$29.58$56.25$82.92$136.25$216.25
60$34.58$66.25$97.92$161.25$256.25
65$41.67$80.42$119.17$196.67$312.92
70$52.50$102.08$151.67$250.83$399.58
75$70.83$138.75$206.67$342.50$546.25
80$96.67$190.42$284.17$471.67$752.91

Not available in the following states: AK, CT, DE, DC, HI, ME, NM, NY & VT

Kemper Guaranteed Issue

Kemper Guaranteed IssueA.M. BEST’S RATING: (A-) Excellent Rating

POLICY NAME: Senior Solutions Guaranteed Issue

MINIMUM COVERAGE AMOUNT: $2,000

MAXIMUM COVERAGE AMOUNT: $25,000

ISSUE AGES: Ages 40-80

APPLICATION TYPE: Paper

APPROVAL TIME: 24-48 Hours

POLICY RIDERS: None

GRADED DEATH BENEFIT PAYOUT:

  • Policy years 1-2 = 100% of all premiums refunded plus 20% interest

FULL DEATH BENEFIT PAYOUT:

  • 100% of the full death benefit payable beginning policy year 3

Kemper Guaranteed Issue Sample Rates

SAMPLE MONTHLY PREMIUMS (MALES)

AGE

$2,000

$5,000

$10,000

$15,000

$25,000

40$14.77$30.67$56.92$83.13$135.59
45$16.76$35.66$66.84$98.03$160.39
50$18.54$40.11$75.74$111.39$182.64
55$20.34$44.61$84.74$124.88$205.13
60$22.07$48.93$93.31$137.69$226.50
65$25.28$56.96$109.17$161.37$265.76
70$28.47$64.94$124.98$185.04$305.14
75$32.65$75.38$145.80$216.22$357.05
80$42.71$100.53$196.13$291.75$482.98

SAMPLE MONTHLY PREMIUMS (FEMALES)

AGE

$2,000

$5,000

$10,000

$15,000

$25,000

40$14.77$30.67$56.92$83.13$135.59
45$16.76$35.66$66.84$98.03$160.39
50$18.54$40.11$75.74$111.39$182.64
55$20.34$44.61$84.74$124.88$205.13
60$22.07$48.93$93.31$137.69$226.50
65$25.28$56.96$109.17$161.37$265.76
70$28.47$64.94$124.98$185.04$305.14
75$32.65$75.38$145.80$216.22$357.05
80$42.71$100.53$196.13$291.75$482.98

Not available in the following states: CA, NY & RI

United Home Life Guaranteed Issue

UHL Guaranteed IssueA.M. BEST’S RATING: (A) Excellent Rating

POLICY NAME: Guaranteed Issue Whole Life 

MINIMUM COVERAGE AMOUNT: $5,000

MAXIMUM COVERAGE AMOUNT: $10,000

ISSUE AGES: Ages 45-75

APPLICATION TYPE: Paper or Electronic

APPROVAL TIME: 24-48 Hours

POLICY RIDERS: None

GRADED DEATH BENEFIT PAYOUT:

  • Policy year 1 = 100% of all premiums refunded plus 6% interest
  • Policy year 2 = 100% of all premiums refunded plus 12% interest
  • Policy year 3 = 100% of all premiums refunded plus 18% interest

FULL DEATH BENEFIT PAYOUT:

  • 100% of the full death benefit payable beginning policy year 4 

United Home Life Guaranteed Issue Sample Rates

SAMPLE MONTHLY PREMIUMS (MALES)

AGE

$5,000

$7,000

$8,000

$9,000

$10,000

45$31.33$42.13$47.52$52.92$58.32
50$35.49$47.95$54.18$60.40$66.63
55$40.54$55.02$62.26$69.50$76.73
60$47.88$65.30$74.01$82.71$91.42
65$57.19$78.32$88.89$99.45$110.02
70$70.93$97.56$110.87$124.19$137.50
75$88.74$122.50$139.37$156.25$173.13

SAMPLE MONTHLY PREMIUMS (FEMALES)

AGE

$5,000

$7,000

$8,000

$9,000

$10,000

45$29.01$38.87$43.81$48.74$53.67
50$32.41$43.63$49.24$54.85$60.47
55$36.44$49.28$55.69$62.11$68.53
60$42.20$57.34$64.91$72.48$80.05
65$49.31$67.30$76.29$85.28$94.27
70$58.79$80.57$91.45$102.34$113.23
75$70.65$97.17$110.43$123.69$136.96

Not available in the following states: AR, KS, MA, MN, NV, NH & NY

Sons of Norway Guaranteed Issue

Sons of Norway Guaranteed IssueA.M. BEST’S RATING: (NR) No Rating

POLICY NAME: Guaranteed Issue Whole Life 

MINIMUM COVERAGE AMOUNT: $5,000

MAXIMUM COVERAGE AMOUNT: $25,000

ISSUE AGES: Ages 0-85

APPLICATION TYPE: Paper or Electronic

APPROVAL TIME: 24-48 Hours

POLICY RIDERS: None

GRADED DEATH BENEFIT PAYOUT:

  • Policy Years 1-2 = 100% of all premiums refunded plus 4.5% interest

FULL DEATH BENEFIT PAYOUT:

  • 100% of the full death benefit payable beginning policy year 3

Sons of Norway Guaranteed Issue Sample Rates

SAMPLE MONTHLY PREMIUMS (MALES)

AGE

$5,000

$10,000

$15,000

$20,000

$25,000

45$14.33$28.66$42.99$57.32$71.66
50$16.72$33.43$50.15$66.86$83.58
55$21.55$43.10$64.64$86.19$107.74
60$27.04$54.09$81.13$108.17$135.21
65$32.82$65.64$98.46$131.27$164.09
70$41.48$82.97$124.45$165.94$207.42
75$52.15$104.30$156.44$208.59$260.74
80$62.59$125.17$187.76$250.34$312.93
85$88.88$177.76$266.64$355.52$444.40

SAMPLE MONTHLY PREMIUMS (FEMALES)

AGE

$5,000

$10,000

$15,000

$20,000

$25,000

45$10.99$21.98$32.97$43.96$54.95
50$12.72$25.44$38.16$50.88$63.60
55$15.90$31.79$47.69$63.58$79.48
60$19.57$39.13$58.70$78.27$97.84
65$23.58$47.16$70.74$94.32$117.90
70$30.23$60.46$90.69$120.92$151.15
75$39.33$78.65$117.98$157.30$196.63
80$49.81$99.62$149.43$199.24$249.05
85$70.81$141.62$212.43$283.24$354.05

Not available in the following states: AL, AR, CA, DE, DC, GA, HI, KY, ME, MI, MS, NM, NY, TN, VT, WV, & WY

What are Pros & Cons of Guaranteed Issue Life Insurance?

Based on what you have learned about guaranteed issue life, you can probably guess many of the benefits or disadvantages. There may be some that will surprise you.

Pros

A guaranteed issue product is perfect for older Americans. This is especially those needing coverage primarily for burial and funeral expenses.  

Because there is no medical underwriting, those with health issues such as cancer, heart disease, diabetes, HIV, etc. can find coverage.  Most traditional life policies require extensive health underwriting, and this prevents those with health issues from finding life insurance coverage.

Applying for guaranteed issue policies are quick and easy. Applications are very short and straightforward, often consisting of one or two pages. Applications that have been completely and correctly filled out can lead to approval as quick as the same day as applying. 

If you are concerned about your health disqualifying you from life coverage, you can secure life insurance with a guaranteed issue policy.

Outside of being an excellent option for those with riskier health conditions, a second pro is the life insurance coverage itself. Guaranteed issue life insurance is whole life insurance coverage. This means that the life insurance coverage is permanent. Best of all, the rates are locked in for life, and the coverage can grow cash value build-up.  

Cons

Guaranteed life insurance has a few cons. The most significant being the graded death benefit or in other terms, the 2-4 year wait on receiving 100% of the full death benefit.

Keep in mind that in most cases the wait is 2-years with many of the top companies to offer this coverage. Passing away during the graded death benefit period is not a total loss. Your beneficiary will still receive all of the money that has been invested in the life insurance coverage plus interest. 

Another potential con to consider is the overall cost. For the amount of coverage received, guaranteed issue life policies are rather expensive. They are also limited in the total amount of coverage you can buy, and added benefits are very minimal. Many companies that do offer a guaranteed issue coverage option will not include riders.

However, looking at the positives, this is still the one type of life insurance coverage that you can not be turned down for. Also, if you need additional coverage, you can always increase coverage by applying with one or more companies.

Who Should Buy Coverage?

The best way to illustrate the ideal person for this policy is to give an example.  

Sally is 65 years old. She has recently been diagnosed with cancer but is currently in remission. Remission has only been for one year, so she will have trouble finding a life insurance company to cover her under a traditional life insurance policy that requires full underwriting. Even though she is recovering, she has also struggled with heart disease over the last several years.

Sally is on a fixed income.  She is worried her family and spouse will be affected financially upon her death because of the rising cost of funerals. All she needs is around $20,000 in coverage to feel secure about her family’s future.

Guaranteed issue life is a perfect product for her needs. She won’t need to go through medical underwriting and can find immediate coverage but with 2-year graded death benefit wait.

Sally is also covered starting day one for the full death benefit should death be a result of an accident.  In addition, the policy will accrue cash as well and can be used in emergencies or future medical issue arise.

When to Consider Guaranteed Issue Life Insurance

Guaranteed issue life insurance is not always the best option for everyone due to the cost and minimum coverage amounts. This coverage is often the best options for both senior citizens health risks that are not favorable to traditional underwriting or for individuals who may have been turned down for life insurance due to medical reasons.

Guaranteed Issue Life Insurance Alternatives

Guaranteed issue life insurance is the one and only life insurance coverage that will take any applicant regardless of their health as long as they are within the age guidelines for coverage.

The closest alternative would be an Accidental Death & Dismemberment (AD&D) policy. These types of insurance policies are often approved under guaranteed issue guidelines so they will not require an exam or details pertaining to health. 

They can often be purchased to provide coverage up to $1,000,000 and are significantly cheaper than guaranteed life insurance coverage. 

The biggest drawback with this alternative is that it only pays out if death is related to an accident or loss of a limb. This type of coverage also has shorter issue ages making it harder for seniors to qualify under the age guidelines. 

Should You Consider A Guaranteed Issue Life?

A Guaranteed Issue policy is a great choice for older adults with health issues needing small amounts of coverage.

If you think this policy is what you need, let us help you.  

We can do an analysis of your situation and determine if this is the best fit. Your health situation and options may be better than you think.

We represent dozens of financially strong companies with multiple different underwriting guidelines and strategies. You may be a fit for a product with more robust coverage.

You won’t know unless you speak to one of our agents for a free analysis of your needs.

Let us help you find the most coverage for your insurance budget.  

Read More About Guaranteed Issue Life Insurance:

Gerber Guaranteed Approval Life Insurance

Gerber Life Insurance, yes the same company that advertises children’s life insurance has an excellent guaranteed approval life insurance policy for adults. Gerber guaranteed approval life insurance is permanent life insurance that you cannot be denied, regardless of past or current health. Best of all there are no medical questions or medical testing and approval

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