Guaranteed issue life insurance, also called guaranteed acceptance, asks no health questions and requires no exam. If you're in the age range, you're accepted. It's the right choice for some people and an expensive mistake for others. Here's how to tell which you are.
How it works
- No health questions. Your health can't get you turned down.
- An age range. Many plans accept people from about 50 to 80 or 85.
- Smaller coverage. Often up to about $25,000, meant for funeral and final bills.
- A waiting period. The full benefit for natural causes usually starts after two years, three with some plans.
- Locked price. On most plans the payment never goes up and the coverage lasts your whole life.
How the waiting period works
If you pass from natural causes during the waiting period, your family usually gets back the premiums you paid, plus interest. After the waiting period, they get the full benefit. Accidental death is usually covered in full from day one. Read each plan's terms, because the details vary. More on waiting periods.
The trade-offs
| Guaranteed issue | Fully covered (with health questions) |
|---|---|
| No health questions | A short set of health questions |
| Waiting period, usually two to three years | Full benefit from day one |
| Higher price for the same coverage | Lower price for the same coverage |
| Smaller coverage amounts | Often larger amounts available |
Who it's a good fit for
Guaranteed issue makes sense when your health rules out the other options, for example:
- Dialysis or kidney failure. Kidney disease options
- Oxygen use at home. COPD options
- Cancer treatment now or very recently. Cancer options
- Another serious diagnosis, or a recent hospital stay, that other plans decline
Who should try for full coverage first
If you can answer health questions, you may qualify for a fully covered plan with no waiting period, often for less money. Many people with high blood pressure, diabetes, or an older heart or cancer history qualify. Many plans sold on TV and by mail are guaranteed issue, so a healthy person can end up paying for a waiting period they didn't need. Here's how to get final expense with no waiting period.
Before you buy
Try for full coverage first
Go through the health questions with an agent who checks several companies. Guaranteed issue is the fallback, not the starting point.
Read the waiting period
Two years or three, what it pays back, and whether accidents are covered from day one.
Never cancel an old policy first
Keep any existing coverage until the new policy is approved and in force.
Pick an amount you can keep paying
The policy only helps your family if it stays in force.
Wondering if guaranteed issue is your only option?
On a free call I'll go through the health questions with you and check several companies for full coverage first. If guaranteed issue is the best fit, I'll show you the plans with the best terms. Licensed in Arizona. By phone or video, no obligation.
Common questions
What is guaranteed issue life insurance?
A policy with no health questions and no exam. If you're in the age range, you're accepted. It usually has a waiting period of two to three years before the full benefit pays for natural causes.
What happens if I die during the waiting period?
On most plans, your beneficiary gets back the premiums paid, plus interest. Accidental death is usually paid in full from day one.
How much coverage can I get?
Guaranteed issue plans are smaller policies, often up to about $25,000, meant for funeral and final bills.
Is guaranteed issue more expensive?
Yes, for the same coverage, because the company takes everyone regardless of health. If you can qualify for a plan with health questions, it usually costs less.
Who should buy guaranteed issue life insurance?
People whose health rules out other plans, such as dialysis, oxygen use or current cancer treatment. Most other people should try for full coverage first.
What if I don't live in Arizona?
I'm licensed in Arizona today and adding more states soon. Send a quote request anyway and I'll let you know as soon as I can help in your state. In the meantime, the free guide walks you through how much coverage you need.
Nick Brown is an independent life insurance agent with NJN Insurance, licensed in Arizona (License 19720244). He compares plans from several companies and explains them clearly. NJN stands for Not Just a Number.