We often get asked what a guaranteed issue life insurance policy is and who should get it?  Guaranteed issue life insurance is a type of life insurance that you cannot be denied coverage on, hence “guaranteed”.  Here are the things you need to know about guaranteed issue life insurance:

  • Guaranteed issue life insurance is typically known as “last resort” life insurance. It’s for those who have been denied previously, usually because of a health condition.
  • Guaranteed issue life insurance premiums are fixed so they never increase.
  • Guaranteed issue life insurance policies often are used to help loved ones pay for final funeral expenses and medical bills.
  • Guaranteed issue life insurance policies do not require a medical exam. Usually age is the only consideration with these policies.
  • Benefits usually have a two year limit. The two year period is called a Graded Death Benefit.  So if the policy holder were to die within two years of buying the policy the beneficiaries typically only receive the amount of the paid premiums.  This will vary by carrier however.
  • Guaranteed issue life insurance policies have lower death benefit when compared to term or permanent policies.

Typically those in good health would not get a guaranteed issue life insurance policy.  Usually only those with a health issue would consider this type of policy.  Unlike term policies, which can be for up to millions of dollars, the guarantee issue policy typically caps at $50,000.  So usually this type of policy is only for those who are trying to help their loved ones pay for bills after their death.

Where to get a Guaranteed Issue Life Policy and What to Look for?

There are many good websites that offer guaranteed issue policies.  I usually suggest to those looking for a guaranteed issue policy to use a website that offers policies from multiple carriers.  All websites, by law, will list the same pricing, so using a website that will give you more options will help you find the best policy for your personal situation at the lowest price.  One interesting website I recently found was Life’s Best Insurances, which offers quotes from many carriers in just 10 seconds, which is a big time savings.  They also give pros and cons for each policy to help you understand each policy so you can find the best policy for you.

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