What is Guaranteed Issue Life Insurance?

Life Insurance

Guaranteed issue life insurance is a form of life insurance that does not require a medical exam or any health questions. There are situations when a person is unable to apply or applies for life insurance and is declined. This means the insurance carrier will not offer any life insurance coverage based on the information they have reviewed on an application and with a health exam. Guaranteed issue life insurance is a way for a person to apply for coverage without worrying about any health related questions or health exam. The key to securing this type of life insurance is to make sure it is affordable for you. Often times, the rates may be higher compared to other life insurances you have heard about or may have had in the past. If you have been declined for life insurance, guaranteed issue life insurance may provide you with some amount of coverage which is better than having none. At the end of the day, you want to make sure it is affordable and fits into your budget.

The amounts of guaranteed life insurance that life insurance companies offer can differ from one company to another. Generally, these types of policies are probably going to be smaller dollar amounts of coverage and some will start out as low as $2,500 of coverage.

Also, be certain to verify that the guaranteed issue life policy will pay the death benefit right away. Some policies may have a waiting period or certain limitations. A waiting period would mean that if a person passes away within a certain time frame, such as in the first or second year of the policy, the insurance company may only pay the beneficiary the premiums that have been paid in and not the full death benefit amount.

One last point to think about, with any company you are considering, always ask if that the guaranteed issue policy provides coverage for your lifetime or only for a certain number of years. 

About the author: Dan Cody has been in the life insurance business for over 7 years. He loves playing a variety of instruments including the guitar, bass, drums, and piano. He also supports cancer research foundations and volunteers at local pet shelters. Dan enjoys helping customers understand life insurance, so they can find a solid policy that fits their needs. You can reach Dan at 1-800-651-1953 or DCody@Pivot.com.