Guaranteed Issue Life Insurance: Pros, Cons & Best Companies

Guaranteed issue life insurance can be a lifesaver for many who find themselves locked out of traditional life insurance due to health challenges.

This form of insurance ensures coverage without a medical exam or health questions, making it highly accessible for those typically between 50 and 85 years old, as reported by the American Council of Life Insurers (ACLI).

If you find yourself in a situation where health issues or age constraints are barriers, guaranteed issue life insurance might be the answer you've been searching for.

Quick Review

Guaranteed issue life insurance offers the significant advantage of accessibility, as it does not require medical exams or health questions, making it an ideal option for individuals with pre-existing health conditions or those who might otherwise be denied coverage.

This type of policy ensures that anyone who applies is accepted, providing peace of mind and financial security for those who may have difficulty obtaining traditional life insurance.

Understanding Guaranteed Issue Life Insurance

So, how does guaranteed issue life insurance work? At its core, this insurance type offers coverage to anyone who applies, without the need for medical underwriting. This makes it a go-to option for individuals with pre-existing conditions such as heart disease or diabetes, who might otherwise be denied traditional life insurance.

Benefits of Guaranteed Issue Life Insurance

Here are some of the key benefits and advantages of opting for a guaranteed issue life insurance policy:

• No medical examinations or health questionnaires required.
• Guaranteed acceptance regardless of health status.
• Coverage is typically activated quickly.
• Peace of mind knowing you have coverage for end-of-life expenses.

Eligibility Requirements for Guaranteed Approval

The eligibility criteria for guaranteed issue life insurance are refreshingly simple, providing an open door for many who might otherwise be excluded from coverage:

• Minimum age requirement is often set between 50 and 85 years old.
• No requirement for a medical exam or health questionnaire.
• Usually available to U.S. residents.
• Ability to pay the required premiums.

Compare Types of Life Insurance Policies

In terms of coverage, guaranteed issue life insurance generally provides relatively small coverage amounts, typically ranging from $5,000 to $25,000. This is often sufficient to cover end-of-life expenses, like funerals or outstanding medical bills, and is ideal for those on a fixed income.

Compared to term life insurance, which can offer higher coverage for a limited period but requires health assessments, and permanent life insurance, which covers one’s entire life with potential cash value accumulation, guaranteed issue life policies offer modest benefits specifically tailored to meet final expenses without the hurdle of medical underwriting.

Cost of Guaranteed Issue Life Insurance

When diving into the cost of premiums, potential policyholders should be prepared for higher premiums compared to traditional life insurance due to the lack of medical underwriting.

For example, a 60-year-old non-smoking male might face premiums around $56.90 per month for $10,000 in coverage with Mutual of Omaha.

The same coverage for a female would be lower at around $42.70, given gender-based longevity differences in pricing. Start Your FREE Quote.

Peace of Mind

The peace of mind offered by this type of insurance cannot be undervalued. Knowing that one's loved ones won't be burdened with funeral costs can bring a great deal of comfort, especially if previous health issues have led to denial from other insurance types.

Limitations of Guaranteed Issue Life Insurance

However, it's essential to be aware of the limitations of guaranteed issue life insurance policies. While the benefits are substantial, they are often accompanied by:

• Higher than average premium costs.
• Lower coverage amounts.
• A graded death benefit where, during the first 2 years, only a refund of premiums paid plus interest is distributed if death results from natural causes.

NOTE: Full benefits typically apply immediately for accidental death.

Graded Death Benefits Explained

Graded death benefits serve as a common stipulation in guaranteed acceptance life insurance policies.

Basically, if you pass away from natural causes within the first two years of the policy, the beneficiaries receive the premiums paid, plus interest, instead of the full death benefit.

However, if death results from an accident, full benefits are typically payable right from day one.

How to Buy Guaranteed Issue Life Insurance

If you're considering buying a guaranteed life insurance policy, follow these helpful steps:

• Research and choose a reliable provider.
• Calculate the amount of coverage you need based on potential end-of-life costs.
• Confirm your eligibility by verifying age requirements.
• Request and compare quotes from multiple companies to find the best rate.
• Complete the application process and pay the first premium.
• Ensure you understand the terms, especially the graded death benefits.

Is Guaranteed Approval Life Insurance Right for You?

It could be if you face considerable barriers in obtaining traditional life insurance, such as significant health challenges or an advanced age.

It's best suited for those needing coverage solely for final expenses and those prioritizing the assurance that acceptance is guaranteed.

The typical profile of someone considering guaranteed issue life insurance involves individuals aged between 50 and 85, often dealing with health complications like diabetes or heart disease.

Many are likely retirees or nearing retirement, living on a fixed income without substantial savings to cover end-of-life expenses.

Common Reasons to Buy Guaranteed Life Insurance

Motivations for exploring this type of insurance often include needing a small policy to cover funeral costs, having been denied coverage elsewhere due to health issues, or wanting to avoid the hassle and insecurity of a medical exam.

If these describe your current situation, exploring your options with top providers like Mutual of Omaha, Gerber Life, Colonial Penn, and New York Life might be worthwhile.

Leading Guaranteed Issue Life Insurance Companies

Mutual of Omaha

• Up to $25,000 of coverage age 45-85 in most states
• No physical exam and no health questions asked
• Guaranteed Acceptance
• 30 day money-back guarantee.
• Two year limited benefit period

Gerber Life

• Up to $25,000 of coverage age 50-80 in all states except Montana
• No doctor exam and no medical questions
• Guaranteed Approval
• Two year limited benefit period

Met Life

• Rates as low as $10 per month.
• Guaranteed Issue for ages 45-75.
• Up to $20,000 of coverage available.
• No medical examination required.
• Two year limited benefit period.

AARP/NewYork Life

• Up to $15,000 permanent group life insurance
• Exclusively for AARP members
• No medical exam and no health questions
• Two year limited benefit period

Colonial Penn

• Exclusively for ages 50 - 85 (most states)
• You cannot be turned down because of your health
• There are no health questions asked and no physicals to take
• Two year limited benefit period

Quick, Easy and Hassle-Free Coverage

If you've recently experienced a health scare, aged out of a term life policy, your interest in this insurance is highly justified.

The hassle-free process of buying a guaranteed issue policy, without the need for a medical examination, can especially appeal to someone who prioritizes convenience and certainty.

Premiums Never Increase

For those on a fixed income or with limited savings, knowing you can easily obtain coverage to handle the financial load of final expenses is quite empowering.

While this insurance won't replace the extensive coverage provided by term or permanent life insurance, it meets a distinct need at a point in life where traditional options may seem elusive.

Safe, Secure Insurance Companies

When selecting a provider, ensure you assess the best options on the market. Companies like Mutual of Omaha, Gerber Life, and Colonial Penn have built reputations on trust and reliability, making them ideal candidates for your research.

Though higher premiums may apply, prioritizing reputable insurers ensures smooth experiences and timely payouts in your greatest time of need.

Not Burden Your Loved Ones

Finally, when considering guaranteed approval life insurance, weigh your emotions alongside the rational aspects of insurance.

The peace that comes from safeguarding your family from final expense burdens is invaluable.

Consider engaging with an agent or financial advisor who can address any lingering doubts and ensure you're making the best choice for your unique circumstances.

Summary

In conclusion, guaranteed acceptance life insurance is a notable option for many facing eligibility hurdles with traditional policies.

It provides valuable peace of mind and requires minimal effort to secure coverage.

Given the particular needs and motivations of the individuals who seek out this type of policy, performing due diligence by researching companies and understanding the terms—such as graded death benefits—is essential to making an informed decision that aligns with your goals and personal circumstances.

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. 

Highly Recommended – Gerber Life

Gerber Life offers guaranteed issue life insurance for people ages 50 to 80. Choose $3,000 up to $25,000 of coverage. Rates start as low as $17.69 per month. There’s no medical exam and no health questions. You cannot be turned down. Start Your FREE Quote. 

Resources:

• Guaranteed Approval Life Insurance FAQs
• Pros and Cons of Guaranteed Approval Life Insurance
• Tips for Buying Guaranteed Approval Life Insurance