Guaranteed Issue Life Insurance
Guaranteed issue life insurance accepts every applicant in its age range with no health questions. That certainty comes with a waiting period and a higher price.
What guaranteed issue means
With a guaranteed issue policy, the insurance company asks no health questions and does not check medical records. If you are within the age range the insurer accepts, commonly somewhere between 45 or 50 and 80 or 85, and you live in a state where the policy is sold, you cannot be turned down for health reasons.
It exists for people who cannot qualify for a policy that asks health questions.
The waiting period
Because the insurer accepts everyone, every guaranteed issue policy has a waiting period, also called a graded benefit. It usually lasts two years, sometimes three.
| If death occurs | What the policy typically pays |
|---|---|
| From illness or natural causes during the waiting period | A refund of the premiums paid, usually with interest (often around 10 percent), instead of the full benefit |
| From an accident during the waiting period | On many policies, the full benefit. Check the definition of “accident” in the policy |
| After the waiting period | The full benefit, for any covered cause |
These are typical terms, not a promise for every policy. The exact rules are written in the policy and we read them through with you.
The trade-offs
- Higher cost. Guaranteed issue costs more for each dollar of coverage than a policy that asks health questions.
- Lower limits. Coverage amounts are usually capped, often at $25,000 or less.
- A waiting period. As explained above, the full benefit is not available at once for death from illness.
Check whether you need it
Many people who assume they need guaranteed issue can in fact qualify for a simplified issue policy, which costs less and may pay in full from the first day. Conditions such as controlled high blood pressure or diabetes are accepted by many insurers.
That is why we ask about your health first. If a policy with health questions will work for you, we say so. If it will not, guaranteed issue is a sound way to make sure something is in place.
Important: no image, headline or agent can promise that a particular person qualifies for a particular policy. Eligibility depends on your age, your state and the insurer’s rules at the time you apply.
Questions about guaranteed issue
Is guaranteed issue the same as guaranteed acceptance?
Yes. Insurers use both names for a policy with no health questions.
What if I die during the waiting period?
For death from illness, your beneficiary typically receives the premiums you paid plus interest. They do not lose the money you put in.
Can I replace it later with a better policy?
Sometimes. If your health allows you to qualify for a simplified issue policy later, you can apply. Do not cancel an existing policy until a new one has been approved and delivered, because a new policy starts new waiting and contestability periods.