Guaranteed Issue Life Insurance for My Dad: Things to Consider

Last Updated: October 2, 2025 | Written by President of Term Life Online – AU, AAI, ARM

Why Consider Guaranteed Issue Life Insurance for Your Dad?

Many adult children look into guaranteed issue coverage when their dad:

• Has serious health conditions like heart disease, diabetes, or cancer
• Is older and doesn’t qualify for traditional life insurance
• Wants peace of mind knowing funeral costs won’t burden the family

For families in this situation, guaranteed issue coverage provides a safety net when other options aren’t available.

Things to Consider Before Buying

1. Coverage Amounts Are Limited

Guaranteed issue policies usually offer smaller benefit amounts—typically $5,000 to $25,000.

While that may not replace income, it’s often enough to cover funeral costs, medical bills, and debts.

2. Waiting Period (Graded Death Benefit)

Most policies have a 2-year waiting period. If your dad passes away during this time (from natural causes), the insurance company won’t pay the full death benefit. Instead, they’ll refund the premiums paid (sometimes with interest). After the waiting period, the full benefit is paid.

3. Higher Premiums Compared to Traditional Policies

Because no health questions are asked, the risk to the insurance company is higher—so premiums are more expensive per dollar of coverage. Make sure the monthly cost fits comfortably into your budget.

4. Age Requirements

Most companies only offer guaranteed issue coverage to applicants between ages 50 and 80 (sometimes 85). If your dad is outside this range, you may need to consider alternatives.

5. Choosing the Right Beneficiary

Think about who will handle the responsibility of final expenses. You (as the adult child) may want to be listed as the beneficiary to ensure funds are available quickly when needed.

6. Company Reputation Matters

Not all insurance providers are created equal. Look for:

• Strong financial ratings (A.M. Best, Moody’s, or S&P)
• A history of reliable payouts
• Clear policy terms

How Much Coverage Should You Get for Your Dad?

To decide, add up the likely costs your family may face:

• Average funeral cost: $7,000 – $12,000
• Medical bills or hospice expenses: varies
• Small debts or outstanding expenses
• Most families find $10,000 to $20,000 in coverage is sufficient.

Alternatives to Guaranteed Issue Life Insurance

While guaranteed issue coverage is a good fallback, consider other options first if your dad qualifies:

• Simplified issue life insurance – No exam, but a few health questions. Premiums are lower and coverage is higher than guaranteed issue.
• Final expense insurance – Similar to guaranteed issue, but sometimes with partial underwriting.
• Group life insurance – If your dad is still working, he may have access through an employer.

Real-Life Example

Linda’s dad was 76 and had a history of heart disease.

He had been denied traditional life insurance twice.

Linda purchased a$15,000 guaranteed issue policy with a premium of $85/month.

Two years later, when her dad passed away, the policy paid out in full. This gave Linda the funds she needed to cover the funeral without dipping into her own savings.

Quick Checklist: Things to Consider for Your Dad’s Policy

✅ Coverage amount (is it enough to cover funeral costs?)
✅ Premium affordability (can you or your dad sustain the monthly payments?)
✅ Waiting period rules (do you understand them clearly?)
✅ Choosing the right beneficiary
✅ Insurance company reputation

By weighing these factors, you’ll know if guaranteed issue life insurance is the right choice for your dad—and for your family’s future.

👉 Next Step: Compare guaranteed issue life insurance quotes before deciding. Small differences in monthly premiums or waiting period rules can save your family hundreds of dollars over time.

Requirements to Buy Guaranteed Life Insurance for My Dad

When buying guaranteed issue coverage for a parent, insurance companies require three key things:

1. Insurable Interest

You must show that you would suffer a financial loss if your dad passes away. Covering funeral and final expenses qualifies as a valid insurable interest.

2. Permission

Your dad must know about and consent to the policy. Secretly buying life insurance on a parent is not allowed.

3. Signature on the Application

Even though you may be the owner and payer, your dad still needs tosign the applicationto confirm his consent. Some companies allow e-signatures, making the process simple.

How to Buy Guaranteed Issue Life Insurance for My Dad

Buying guaranteed issue life insurance for your dad is a straightforward process, but there are a few important steps to follow:

Step 1: Research Providers

Not every insurance company offers guaranteed issue policies, and benefits/premiums vary.

Compare at least three companies to see which offers the best rates, coverage, and financial ratings.

Step 2: Confirm Eligibility

Most policies are available for dads between ages 45 and 80 (sometimes 85). Make sure your dad meets the age requirement before applying.

Step 3: Get Your Dad’s Permission

Even though you may be paying for the policy, your dad must sign the application. Insurance companies require proof that your dad knows about and agrees to the coverage.

Step 4: Choose Coverage Amount

Decide how much coverage is enough to cover his funeral costs, medical bills, or small debts. Most families choose between $10,000 and $20,000.

Step 5: Select Beneficiary & Ownership

You can apply to be both the policy owner (responsible for paying premiums) and the beneficiary (receiving the death benefit). This ensures you control the policy and funds are available quickly when needed.

Step 6: Apply & Pay Premiums

Fill out the application with your dad’s basic information. There are no medical exams or health questions, so approval is guaranteed. Once the first payment is made, the policy becomes active.

Things to Consider Before You Buy

When setting up guaranteed issue life insurance for your dad, think carefully about these important factors:

✅ Policy Ownership

If you’re worried about lapses in payment, it’s usually best for you (the adult child) to own the policy. This way, you’re in control of paying the premiums and keeping the coverage active.

✅ Paying the Premiums

Premiums can be higher for guaranteed issue policies. Make sure you (or your dad) can sustain monthly payments long-term. Missing payments could cancel the policy.

✅ Naming Yourself as Beneficiary

If your goal is to handle funeral arrangements and final expenses, naming yourself as the beneficiary ensures quick access to the death benefit when your dad passes.

✅ Understanding the Waiting Period

Most policies have a two-year waiting period. If your dad passes away during this time (from natural causes), only premiums are refunded plus interest. If he passes after, the full benefit is paid.

✅ Comparing Alternatives

Before committing, check if your dad qualifies for simplified issue or final expense insurance. These may offer more coverage at lower cost if his health allows.

Frequently Asked Questions About Guaranteed Issue Life Insurance for My Dad

1. Can I buy guaranteed issue life insurance for my dad?

Yes, you can buy guaranteed issue life insurance for your dad, but he must sign the application and give permission. Insurance companies require his consent and insurable interest before issuing a policy.

2. How much guaranteed issue life insurance should I get for my dad?

Most families choose between $10,000 and $20,000 in guaranteed issue coverage for their dad.

This amount typically covers funeral costs, medical bills, and small debts.

3. What is the waiting period on guaranteed issue life insurance for my dad?

Most policies have a two-year waiting period. If your dad passes away from natural causes during this time, the insurer will refund premiums (sometimes with interest). After the waiting period, the full death benefit is paid.

4. How much does guaranteed issue life insurance cost for dads?

Premiums vary depending on your dad’s age and the coverage amount, but expect to pay $50 to $200 per month for $10,000 to $20,000 of coverage.

Because there are no health questions or exams, guaranteed issue policies are more expensive than traditional life insurance. Start Your FREE Quote.

5. What age can my dad get guaranteed issue life insurance?

Most companies offer guaranteed issue life insurance for dads between ages 45 and 80 (sometimes up to 85). If your dad falls outside this range, you’ll need to explore alternatives.

6. What happens if my dad dies during the waiting period?

If your dad passes away within the two-year waiting period, the policy will not pay the full death benefit. Instead, the insurance company refunds all premiums paid, usually with interest. If the death is due to an accident, however, most insurers pay the full benefit immediately.

7. Who should be the beneficiary of my dad’s guaranteed issue life insurance?

Most adult children name themselves as the beneficiary, so funds are immediately available to cover funeral costs and final expenses. Choose a responsible family member who can handle the arrangements without delays.

8. Is guaranteed issue life insurance the best option for my dad?

It depends. If your dad is in relatively good health, asimplified issue or final expense policymay offer lower premiums and higher coverage. But if he has serious health issues or has been declined elsewhere, guaranteed issue life insurance may be the most reliable option.

Final Thoughts: Is Guaranteed Issue Life Insurance Right for Your Dad?

If your dad is older, has health issues, or has been declined for other policies, guaranteed issue life insurance can provide peace of mind and financial protection for your family.

It’s not the cheapest option—but it ensures that when the time comes, your family won’t be burdened with unexpected final expenses.

Summary

Choosing guaranteed issue life insurance for your dad can give your family peace of mind when health issues or age make traditional coverage unavailable.

By understanding the requirements—like insurable interest, your dad’s permission, and his signature—and considering key factors such as policy ownership, premium payments, and naming yourself as beneficiary, you can ensure the policy truly meets your family’s needs.

While coverage amounts are smaller and premiums higher, guaranteed issue policies provide a simple, reliable way to cover funeral costs and final expenses.

Taking the time to compare providers, review waiting periods, and select the right coverage amount will help you protect your dad’s legacy and shield your family from financial stress.

Guaranteed Issue Life Insurance Quotes

Top Pick – United of Omaha

United of Omaha offers guaranteed acceptance whole life insurance for people age 45 to 85. Choose $3,000 up to $25,000 of coverage. Rates start as low as $8.80 per month. There’s no medical exam and no health questions. You cannot be turned down. You can get a quote and apply online now. Start Here to get a FREE Quote.

Resources:

• Guide to Guaranteed Acceptance Life Insurance
• Tips for Buying Guaranteed Issue Life Insurance
• Guaranteed Issue Life Insurance FAQs
• Pros and Cons of Guaranteed Issue Life Insurance
• A.M. Best Company: Compare financial strength ratings of life insurance companies
• Life Happens.org: Learn about life insurance and review facts.

About Our Methodology

Reviewed By: President of Term Life Online – AU, AAI, ARM

• 30+ years of experience in insurance planning

How We Keep This Guide Accurate: We regularly updates our content to reflect the latest rates and industry trends. We are committed to providing transparent, unbiased information to help you make the best decision for your family.

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