What to Know Before Buying Guaranteed Issue Life Insurance (Before You Apply)

Last Updated: November 28, 2025 | Written by President of Term Life Online – AU, AAI, ARM

How Guaranteed Issue Life Insurance Works

To understand guaranteed issue life insurance, you need to understand three core features:

1. It Has a Mandatory Waiting Period

Every GI policy includes a 2-year graded death benefit.

If you die from natural causes in the first two years:

• Your family does NOT receive the full death benefit
• They typically only receive premiums paid + 10% interest
• You must outlive the waiting period for full coverage.

The only exception:

• Accidental death is fully covered from day one.

2. It’s More Expensive Than Other Types of Coverage

Since the insurer is accepting health risks blindly, premiums are significantly higher.

Guaranteed issue is one of the most expensive forms of life insurance per dollar of coverage.

3. Coverage Amounts Are Low

Typical maximums:

• $10,000–$25,000 total coverage
• Some carriers offer up to $50,000, but premiums are steep

These policies are mainly used to cover:

• Funeral costs
• Final medical bills
• Small debts

Who Actually Needs Guaranteed Issue Life Insurance?

Guaranteed issue is not the best choice for everyone.

It’s specifically designed for people who cannot qualify for any other type of life insurance.

You should consider GI only if you have:

• End-stage illnesses (advanced cancer, CHF, COPD, ESRD)
• Severe health impairments that trigger automatic declines elsewhere
• Recent major medical events (stroke, heart attack, transplant)
• Hospitalization or nursing home care in the last 90 days
• Serious mobility or cognitive issues
• Uncontrolled chronic conditions

If any of these apply, GI can be the only available option—and a lifesaver.

Who Should NOT Buy Guaranteed Issue Life Insurance

This is where most shoppers get it wrong.

You should NOT buy guaranteed issue if:

1. You can qualify for simplified issue or final expense insurance.

These allow:

• Some health questions
• No medical exam
• Lower premiums
• Immediate full coverage

Most people think they need GI…but they actually qualify for cheaper, better coverage.

2. You’re under age 45–50

• Most GI policies don’t even start until age 50.
• If you’re younger, you likely have better options.

3. You want more than $25,000–$50,000 in coverage

Guaranteed issue cannot supply large benefit amounts.

4. You’re healthy enough to qualify for a standard policy

Many people choose GI because they don’t want to answer health questions—not because they can’t.

This is an expensive mistake.

The Pros and Cons You Need to Know

  ✔️ Pros

• Guaranteed approval
• No health questions at all
• Ideal for people with severe or terminal health conditions
• Permanent coverage—never expires
• Premiums never increase

  ❌ Cons

• 2-year waiting period
• Very high premiums
• Low coverage amounts
• Not ideal if you’re only moderately unhealthy
• Easy to overpay without realizing better options exist

The Biggest Mistake Buyers Make

They assume they won’t qualify for a cheaper policy—without ever checking.

The #1 mistake people make before buying guaranteed issue life insurance:

In reality, over 70% of people who believe they "need" guaranteed issue can actually qualify for a different product that:

• Costs 30–60% less
• Has day-one coverage
• Offers higher benefit amounts

Guaranteed issue should be a last resort—not your first stop.

How Much Does Guaranteed Issue Life Insurance Cost?

Here are typical price ranges for a $10,000 policy:

                        Age           Male                 Female

                            50           $38-$48/mo           $28-$35/mo

                            60           $55-$72/mo           $42-$55/mo

                            70           $88-$120/mo         $70-$95/mo

                            80           $165-$210/mo       $120-$175/mo

Rates vary by carrier, age, gender, and tobacco status—but they are always high relative to coverage.

What to Look for When Choosing a Guaranteed Issue Policy

Before buying, make sure you understand:

  ✔  The waiting period terms

• Some insurers return full premiums plus 10%.
• Others only return premiums.

  ✔  The maximum coverage amount

• If you need more than $50k, GI may not be enough.

  ✔  Financial strength rating

• Choose A-rated insurers or higher.

  ✔  Whether accidental death is fully covered from day one

• This varies slightly by carrier.

  ✔  Premium guarantees

• Avoid policies where rates can increase.

Best Strategy Before Buying Guaranteed Issue Life Insurance

Follow these steps:

1.  Try qualifying for a simplified issue or final expense policy first.

• Most people qualify even with moderate health issues.

2. Work with an independent agent.

• They can review 10–20+ carriers instead of just one.

3. Only choose guaranteed issue if you’re declined everywhere else.

• It’s the "break glass in case of emergency" option.

4. Buy as early as possible if your health is declining.

• Premiums rise sharply with age.

Is Guaranteed Issue Worth It?

Guaranteed issue life insurance can be worth it, but only for the right person.

It’s worth it if you:

• Cannot qualify for any other policy
• Need final expense coverage
• Want guaranteed acceptance
• Are okay with a two-year waiting period

It’s NOT worth it if you:

• Can qualify for other coverage
• Want immediate full benefits
• Need more than $25,000–$50,000
• Want cheaper premiums

Key FAQs About Guaranteed Issue Life Insurance

1. Can you have multiple guaranteed issue life insurance policies?

Yes. As long as you can pay the premiums, you can own multiple GI policies from different companies. The insurer doesn’t require health questions, so they don’t restrict layering coverage.

2. Does guaranteed issue life insurance build cash value?

Yes. Because it’s a whole life policy, it slowly builds cash value over time. The growth is minimal, but you can borrow against it in the future.

3. Can guaranteed issue premiums ever increase?

No. GI policies come withlevel premiums, meaning your monthly cost stays the same for life, even as you age or your health worsens.

4. Is guaranteed issue life insurance available to people over 85?

Very rarely. Most companies cap eligibility at age 80 or 85, and options above that age are extremely limited and expensive.

5. Can you buy guaranteed issue life insurance online?

Yes. Many insurers allow you to apply entirely online with instant approval—no agent, no phone call, and no medical questions.

6. Does guaranteed issue life insurance cover COVID-19 deaths?

Yes. COVID-19 is treated as a natural cause of death. If it occurs after the two-year waiting period, the full benefit is paid.

7. Can you get guaranteed issue life insurance if you’re on disability?

Yes. Being on disability does not affect eligibility for GI policies. Approval is based solely on age—not health, income, or occupation.

Bottom Line: What to Know Before Buying Guaranteed Issue Life Insurance

Guaranteed issue life insurance is a powerful safety net—but also one of the most misunderstood types of coverage.

Before you buy, remember:

• It guarantees approval—but at a higher price
• It includes a 2-year waiting period
• Coverage amounts are limited
• Most people qualify for better options

Use guaranteed issue as a last resort, not your first choice.

But if you truly need it, it can give your family the financial protection they need at the moment they need it most.

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 – Allstate Benefits Insurance Company

Allstate Benefit's Guaranteed Acceptance policy offers $10,000 to $75,000 of coverage to working applicants between the ages of 18 and 70. Rates start as low as $9.65 per month. There’s no medical exam and no health questions. You cannot be turned down. You can get a quote and apply today. Start Here to get a FREE Quote.

NOTE: To qualify, applicants must be working at least 20 hours per week and not collecting any form of disability income or SSDI.

No Waiting Period: The policy goes In Force on the first day of the month after it's purchased. For example, if the policy was purchased during the month of January, it would be active February 1st.

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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