Guide: Guaranteed Issue Life Insurance
If you want to learn more about guaranteed issue life insurance or find out if it is the right type of life insurance for you, this guide will help you.
People with certain medical conditions or health problems can find it difficult to obtain a traditional life insurance policy. However, you should not let these circumstances discourage you from shopping for guaranteed issue life insurance coverage.
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What Is Guaranteed Issue Life Insurance?
About Guaranteed Issue Life Insurance
Guaranteed Issue Life Insurance Rates
The 3 Best Guaranteed Issue Life Insurance Companies
Who is Guaranteed Life Insurance for?
Applying for Guaranteed Issue Life Insurance
What Is Guaranteed Issue Life Insurance?
Guaranteed issue life insurance policies are for high-risk individuals.
They are a special type of life insurance that is issued without completing a medical exam, answering medical questions, or providing medical information. When you apply, your acceptance is “guaranteed.”
There is no underwriting and a short application with only basic facts is required. You will need to include on your guaranteed life insurance application details such as age, gender, height, social security number, and tobacco usage.
Guaranteed issue life insurance isn’t really any different than other life policies. It can be purchased as either a term or a permanent life plan.
The main difference is that guaranteed issue life insurance does not involve customary underwriting practices and, as a result, the coverage amounts are usually lower than a standard life plan.
About Guaranteed Issue Life Insurance
You should know a few characteristics of guaranteed acceptance policies that make them different than other life insurance.
Coverage Amounts for Guaranteed Life Insurance are Lower
Face amounts of guaranteed issue life insurance policies will most generally be lower than more traditional plans. Coverage amounts between $5,000 and $25,000 are what insurance companies typically offer.
It will be a challenge to find a guaranteed issue life insurance plan that provides a higher coverage amount. This is because the insurance company knows very little about your health or lifestyle. It leads them to believe they will probably pay out on your policy earlier than normal which increases their financial risk.
Life insurance with low face amounts are considered “burial” or “final expense” plans as they usually are just enough money to cover funeral costs.
Guaranteed Issue Policies have a Waiting Period
Your insurance agent will also tell you that a guaranteed issue life policy normally has a two year waiting period. This clause is common.
It will provide a graded death benefit which means only a portion of the death benefit is paid during the first two years.
Or it will state the death benefit shall not be paid if you die prior to the policy being in force for two years. Instead, the insurance company will refund to your beneficiary the total amount of paid premium. However, for most guaranteed issue life policies, deaths caused by an accident unrelated to your lifestyle will guarantee payment of the full death benefit.
If you are a high-risk individual then it’s most important to secure a policy as soon as possible so that you start working through this waiting period.
Guaranteed Issue Life Insurance Premiums are Higher
Premiums for guaranteed issue life insurance policies are higher than more traditional life policies of equal coverage. This is because of the limited information the life insurer receives at the time of application. Therefore, the insurance carrier is taking on a higher risk by insuring individuals that may work or live in precarious situations.
Rather than simply denying you, the insurance company is willing to provide the coverage but at a higher cost. Your insurance agent knows this so he/she will certainly shop around to several carriers looking for the most competitive premium.
Your insurance agent will also know the steps you should take in order to increase your chances of finding affordable coverage. Keep in mind there are few factors that go into determining guaranteed issue insurance premiums.
Questions Companies Ask About Medical Conditions
A few life insurers may include a short list of “knock-out” questions on the application. Depending on how you answer these “knock-out” questions, you may eliminate yourself from the application process immediately.
Here are some example knock out questions:
- Do you currently reside in a hospital or long-term-care institution?
- Have you been declared terminally ill?
- Do you have AIDS or HIV?
If you answer yes to any of these questions, then you will be denied coverage. However, not all companies do this.
Of course, your insurance agent will most likely know the companies that include these questions. If these are questions you wish to avoid, the insurance agent will know that too. An experienced agent can steer you towards a guaranteed life insurance policy that better suits your situation.
Guaranteed Issue Life Insurance Rates
Rates for guaranteed life insurance are higher than underwritten policies, but they can still be affordable. Because there is no underwriting or medical exam, guaranteed issue life insurance rates are typically the same no matter your health.
Each column header represents a different coverage amount.
Note: These are only sample rates but will give you an idea of what to expect. For a more accurate quote, fill out the tool on this page and give us a call.
Rates for Men
| Age | $5,000 | $10,000 | $15,000 | $20,000 |
|---|---|---|---|---|
| 50 | $27 | $52 | $77 | $102 |
| 55 | $29 | $57 | $84 | $111 |
| 60 | $33 | $63 | $94 | $124 |
| 65 | $38 | $73 | $109 | $144 |
| 70 | $48 | $93 | $139 | $184 |
| 75 | $63 | $124 | $186 | $247 |
| 80 | $89 | $175 | $262 | $348 |
| 85 | $150 | $299 | $447 | $596 |
Rates for Women
Below are guaranteed issue rates for females.
| Age | $5,000 | $10,000 | $15,000 | $20,000 |
|---|---|---|---|---|
| 50 | $19 | $36 | $53 | $70 |
| 55 | $21 | $40 | $59 | $78 |
| 60 | $24 | $45 | $67 | $88 |
| 65 | $28 | $55 | $81 | $107 |
| 70 | $36 | $70 | $105 | $139 |
| 75 | $49 | $96 | $143 | $190 |
| 80 | $69 | $135 | $202 | $268 |
| 85 | $103 | $204 | $305 | $406 |
The Best Guaranteed Issue Life Insurance Companies
There are over a dozen life insurance carriers that offer some kind of guaranteed issue policy. We’ve researched them all and determined that these are generally the 3 best life insurance companies for a guaranteed acceptance policy!
| Company | AM Best Rating | Age Availability | Coverage Amounts | Graded Period |
|---|---|---|---|---|
| AIG | A | 50 – 80 | $5,000 – $25,000 | 24 months |
| Gerber | A | 50 – 80 | $5,000 – $25,000 | 24 months |
| Great Western | B++ | 40 – 85 | $1,000 – $40,000 | 24 months |
Be sure to speak with an expert life insurance agent to make sure that there are not other companies better for you. Each policy and company is unique and caters to different people, health conditions, and situations. It’s always best to review every aspect of each option you have. You want to be sure the life policy you have is the right fit.
Who is Guaranteed Issue Life Insurance for?
Working with a knowledgeable independent agent to find the right guaranteed issue life insurance coverage for high-risk individuals will give you the best chance of finding the right policy that fits your needs.
Many independent insurance agents specialize in helping all types of high-risk (aka “impaired risk”) individuals.
Health Conditions and Guaranteed Issue Life Insurance
Some health conditions that could put you in the high-risk category might mean that a guaranteed issue policy is the only policy you can qualify for.
- Cancer
- Cardiovascular disease
- Cerebrovascular disease (i.e. stroke)
- Diabetes
- Epilepsy
- Hepatitis
- Sleep apnea
- High Cholesterol
- Hypertension
- Neurological disease (i.e. MS or Parkinson’s disease)
- Obesity
- Mental Health Issues
- History of drug or alcohol abuse
With many of these, you may still qualify for a simplified issue or traditional policy, depending on the severity. It’s always best to make 100% sure you cannot qualify for other policies before purchasing guaranteed issue life insurance since this type of life insurance tends to be more expensive.
Applying for Guaranteed Issue Life Insurance
The first step toward purchasing guaranteed life insurance is to work with an experienced independent agent who will do their research into the best company for your personal situation. There are over sixty different life insurers offering guaranteed issue life insurance. You should have no problem finding a suitable option if you work with an experienced agent.
Since the standard underwriting process is eliminated, guaranteed issue life insurance for high-risk individuals can be issued very quickly. Most guaranteed issue life insurance carriers can issue policies within 48 hours but no later than 30 days from the time of submission.
Use the quote tool and call us today to find out which type of policy is best for you!
Compare Guaranteed Issue Life Insurance Rates Here
Find an affordable policy to help your family
As principal licensed life insurance agent Bennett Bier has helped 1000’s of people purchase life insurance online & over the phone. During his career he has become the go to expert for securing hard to place term and permanent life insurance policies for clients across the nation. With his wealth of knowledge of each life insurance carrier’s products and underwriting he provides honest answers and advice to every client. Bennett Bier and his team will work tirelessly to successfully secure the coverage your family deserves.
All content on this site has been written by life insurance experts & licensed life insurance agents.