- Guaranteed issue is a type of life insurance for older people that doesn't require a medical exam.
- Guaranteed issue life insurance is more expensive than other no medical exam life insurance policies.
- People with serious health conditions should consider a guaranteed issue life insurance policy.
Most people get life insurance to cover the mortgage, education, and other expenses so their family can continue paying the bills after they die. The goal of having life insurance is to ease the burden on your loved ones after your loss.
Traditional insurance policies require a medical exam as part of the approval process known as underwriting. However, some people will not qualify for traditional life insurance due to health conditions. If you are concerned about not qualifying due to health and are age 50 or over, a guaranteed issue or guaranteed acceptance life insurance policy may be your best bet.
Get life insurance quotes
Defining guaranteed issue life insurance
Guaranteed issue is a type of whole life insurance with low qualification requirements, high premiums, and small coverage amounts.
No Health Questions or Medical Exam
Traditional insurance policies require a medical exam as part of the approval process known as underwriting. This medical exam may include a physical, blood test, and urinalysis. Guaranteed issue life insurance are considered "no medical exam life insurance" policies. Instead, insurers use your medical records and a required medical questionnaire to underwrite your policy.
Designed for Individuals with Health Issues
Guaranteed issues can be a good idea if you are in poor health and don't qualify for a traditional life insurance policy. Policygenius states, "nearly all applicants are approved" for guaranteed life insurance.
Smaller Coverage Amounts
Guaranteed life insurance is also referred to as "final expense/funeral insurance" because the coverage amounts are so low that they basically only cover funeral and burial expenses. Managing editor of Insure, Les Masterson noted that the median price for a funeral is $8,500, and death benefits for funeral insurance can fall anywhere from $5,000 to $25,000.
Higher premiums
Life insurance providers assume more risk when insuring guaranteed life policyholders because they don't have a complete picture of your health status. Guaranteed issue life insurance premiums are usually more expensive compared to other no medical life insurance policies for less coverage.
For guaranteed life insurance, your premium calculation depends on age, gender, location, and coverage amount. Understand that coverage amounts are limited and vary by insurance provider. We found sample quotes for a 51-year-woman for $25,000 in coverage living in Illinois:
| Insurance type | Coverage amount | Monthly insurance premium |
| AARP Easy Life Insurance (Guaranteed issue) | $25,000 | $108 |
| Mutual of Omaha Guaranteed Plus Whole Life (Guaranteed Issue) | $25,000 | $73.50 |
Graded death benefits
Guaranteed issue insurance provides graded death benefits, meaning you'll need to wait for the entirety of your coverage to kick in. This standard waiting period is two years. If you die before the two years, your beneficiaries will be refunded 110% of your premium payments, according to Policygenius.
Why choose guaranteed issue life insurance?
You have significant health issues
Guaranteed issue life insurance is for those who might be in poor health and can't qualify for other types of life insurance. It is usually marketed for those over 50 because there is a limit on the coverage amount. It is more expensive than other no medical exam life insurance policies.
You need coverage immediately
If you have serious health conditions and are worried about leaving your family without financial protection, guaranteed issue could be the solution. An application for a traditional policy may take four to six weeks to approve. But you could get approved for a guaranteed issue with little to no waiting time.
Pay for end-of-life expenses
If you want to help your family with end-of-life costs but don't qualify for the traditional policy, consider guaranteed issue life insurance. While this policy's death benefits are smaller, it typically offers enough to cover final expenses.
Compare life insurance options
Not Rated
A
- 100% online application process, quotes in minutes
- Coverage starts immediately once approved
- Term policies renewable up to age 94 for qualifying applicants
- No conversion options to turn term policies to whole life for no exam policies
- Whole life policy limits are lower
762
A
$19 for males and $16 for females per month
N/A
Up to $2 million
- Guaranteed life insurance available for seniors between 50 and 80
- High financial strength and customer service ratings
- Some policies only have benefits up to $25,000
- AIG may not offer more extensive death benefits for seniors
N/A
A+ (Superior)
- Offers level term and whole life policy
- Discount and bundling opportunities
- Available in all 50 states
- Limited add-on coverage options
- No universal policies
- Online complains indicating life insurance service does not match other Amica products
- Term life and whole life
FAQs
Are there any eligibility requirements?
Most guaranteed issue policies have age eligibility requirements. Providers typically require applicants to be 50 or older to qualify.
Can I get a large amount of coverage with guaranteed issue life insurance?
No, you typical won't get a large amount of coverage with guaranteed issue insurance. Most policies offer coverages between $5,000 to $25,000.
What happens if I die during the graded period of a guaranteed issue life insurance policy?
If you die during the graded period, you'll receive your premiums back rather than the full death benefit.
Where can I find guaranteed issue life insurance policies?
You can find guaranteed issue policies online, or even check out those guaranteed issue life mailers that might arrive in your mailbox. If you have auto, homeowners, or renters insurance, reach out to your agent and ask if they provide no medical exam life insurance. Some of the best guaranteed issue life insurance companies include Ethos, AARP, and Prudential.
Are there alternatives to guaranteed issue life insurance?
An alternative to guaranteed issue is simplified issue life insurance. Like guaranteed issue, simplified issue does not require a medical exam, but it does require a health questionnaire. They're harder to qualify for but are generally a better deal because you can get more coverage for a cheaper premium.
