Guaranteed Issue Life Insurance

Written by Terumi Davis

Are you having difficulty in finding a life insurance policy because of your age or health condition? Have you been denied life insurance and believe the road has come to a dead end? You do not have to be disheartened. There is another option, and it is called guaranteed issue life insurance. You can have that peace of mind knowing that you can obtain coverage regardless of your health circumstances.


You will not be turned down

Guaranteed issue life insurance is a policy that does not require a medical exam, and no health questions will be asked to receive approval. Seniors, smokers and those with health issues find this type of policy attractive. If you are between the accepted age bracket of 50-80 years, you are a US citizen or a permanent legal resident; you will qualify for coverage. Guaranteed Issue life insurance is a whole life policy, and it is for individuals who could not get coverage anywhere else. You just need to complete an application, pay your premium and your acceptance is guaranteed, regardless of your health. Every client will qualify for coverage as long as they fall within the age parameters, citizenship or residency status. If you have been previously denied coverage for any reason or are planning ahead to ease the burden of funeral expenses, guaranteed issue is a quick and simplified route in obtaining coverage.


Features of Guaranteed Issue Life Insurance

·      No medical exam, blood work or health history are required to qualify

·      No underwriting

·      Premiums are guaranteed for the length of the plan & will never increase.

·      Lifetime coverage never needs to be renewed

·      The benefit is limited to a refund of premiums plus interest, should you pass away within the first two years.

·      You build cash value that you can use in an emergency

·      Your policy will never be cancelled due to age or health condition

Reasons to Consider Guaranteed Issue Life Insurance

·      You have a serious health condition

·      You believe answering “yes” to certain health or lifestyle choices questions will disqualify you for life insurance

·      You have been declined for life insurance coverage in the past

·      You are ineligible for standard life insurance policies

·      You have a fear of needles

·      You haven’t visited a doctor in many years

·      You are planning your final expenses

·      You only need a small policy

·      You engage in a high-risk hobby such as base jumping

·      Quick coverage within a few days instead of the typical 6-8 weeks with a fully underwritten policy

If you are a male, age 50 and are looking for life insurance coverage of $15,000, your monthly premium will be around $57.


Guaranteed Issue for Final Expense

Due to the lower policy amounts, a guaranteed issue policy is designed to pay for funeral expenses. The average funeral in the US can run from $7000-$10,000 and can increase substantially from there depending on the factors. You have probably read or have seen on television a family that has lost a loved one and are now accepting donations to cover funeral expenses. When the unexpected occurs, your family has enough difficulty dealing with their grief and loss. By having insurance coverage, you will have that peace of mind knowing that your family is prepared and will not have to face a financial burden.

A guaranteed issued policy contains a graded death benefit. This clause was introduced to reduce insurance fraud. A graded death benefit means that if the insured dies within the first two policy years for any reason (unless it was an accident), all premiums will be refunded and paid to the beneficiary plus 10% interest. If the insured dies after the two-year grace period, then the full coverage amount of the policy will be given to the beneficiary. In the event of an accidental death within the first two policy years, then the full death benefit will be paid to the beneficiary.

If you are healthy, it is always preferable to have a fully medically underwritten policy, since the premiums will be much lower. For healthy individuals, the actual premium amount that you have paid into a guaranteed issue policy may be more than the death benefit your beneficiary will receive.

For example, you were a very healthy 60-year-old when you took out a $15,000 policy and had been paying $85 a month in premiums until the age of 80. Your total premium cost for 20 years would be $20,400 for only a $15,000 policy. Definitely for a healthy individual, paying more in premiums than what your beneficially will receive in a death benefit is not a right choice.


Disadvantages of a guaranteed issue policy

·      Higher premium due to lack of medical exam

·      Graded death benefit

·      Smaller policies, typically $5000 to $25,000

·      Age limits must be between 50-80 years of age

A guaranteed issue insurance policy will cost more than a traditional underwritten policy since they are taking on more risk, because of the lack of a medical exam.

Due to the higher premiums and smaller death benefit, a guaranteed issue policy should be used as a last-ditch option, if all your other avenues have been exhausted. When you have serious health problems, it doesn’t remove your need for life insurance. Moreover, it makes your need to protect your family that much more crucial. When a guaranteed issue policy is your last resort, you can rest easy knowing that you have the coverage you need.


Application is Quick and Simple

Shopping for a life insurance policy can be overwhelming. TDL Insurance Group is here to assist you in answering any questions and guide you through the process. As an independent agent, I work with numerous top rated life insurance companies. Therefore, I will be able to compare the various policies, benefits and quotes from each carrier and determine the best option for your situation at the most affordable rate. When you are ready to move forward, you can call me at 800-876-9016 or email me at, and you will be on your way to obtaining coverage.


About TDL Insurance Group
About TDL Insurance Group

We work with individuals across the nation to secure the best life insurance rates.

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