Posted in Life Insurance last updated on March 16, 2025
The Life Insurance Option That’s Always Approved
Not everyone qualifies for traditional life insurance. If you’ve been denied coverage due to health issues, you might feel like you have no options left.
But that’s not true.
Guaranteed Issue Life Insurance exists for people who:
- Can’t qualify for other life insurance due to pre-existing conditions.
- Need coverage fast, with no medical exams or health questions.
- Want to ensure their family isn’t burdened with final expenses.
It’s simple: No health checks. No questions. No denials.
However, there’s a catch. Guaranteed issue life insurance comes with higher premiums, lower payouts, and a mandatory waiting period.
So, is it the right choice for you?
In this guide, we’ll cover:
- What guaranteed issue life insurance is—and how it works.
- Who it’s for (and who shouldn’t buy it).
- How much it costs (real pricing examples).
- The waiting period and what it means for your family.
- Pros, cons, and better alternatives if you qualify.
By the end, you’ll know whether this policy is worth it and how to get the best deal.
What is Guaranteed Issue Life Insurance?
Guaranteed issue life insurance is a type of whole life insurance that approves everyone—no medical exams, no health questions, no risk of denial.
Unlike term life insurance (which expires after a set period) or standard whole life insurance (which requires health qualifications), guaranteed issue life insurance is designed specifically for people who can’t qualify for traditional coverage.
How It Works
- Fixed premiums for life (never increases).
- Guaranteed coverage (as long as premiums are paid).
- Cash value accumulation (grows over time like a savings account).
- Death benefit payout to help cover funeral costs, medical bills, or debts.
- 2-year waiting period before full benefits are available.
It’s a lifeline for people who have no other insurance options—but it’s not for everyone.
Who Should Consider Guaranteed Issue Life Insurance?
Guaranteed issue life insurance is a last resort for people who can’t qualify for traditional life insurance.
People With Serious Health Conditions
If you’ve been diagnosed with:
- Cancer (past or present)
- Heart disease, stroke, or high blood pressure
- Diabetes with complications
- Kidney or liver disease
- A history of drug or alcohol abuse
Traditional insurers may deny coverage—but guaranteed issue approves you automatically.
Seniors Who’ve Been Declined for Other Policies
Many seniors over 50, 60, or 70 years old find that standard life insurance policies are too expensive or require medical underwriting.
Guaranteed issue policies are simpler—no questions, no tests, just approval.
People Who Need Coverage for Final Expenses
The average funeral costs $7,000 to $12,000—and that doesn’t include medical bills, debts, or other final expenses.
Guaranteed issue life insurance ensures your family doesn’t struggle financially when you pass away.
People Who Waited Too Long to Get Coverage
If you’ve delayed buying life insurance and now face health issues or higher age-based premiums, guaranteed issue may be your only option.
Guaranteed Issue vs. Other Types of Life Insurance
How does guaranteed issue compare to term life, whole life, and final expense insurance?
Comparison Table: Guaranteed Issue vs. Other Life Insurance Options
| Feature | Guaranteed Issue Life Insurance | Term Life Insurance | Whole Life Insurance | Final Expense Insurance |
|---|---|---|---|---|
| Medical Exam Required? | No | Yes | Sometimes | No |
| Health Questions? | None | Yes | Yes | None |
| Guaranteed Approval? | Yes | No | No | Yes |
| Payout Amount | Lower | High | High | Moderate |
| Cash Value Accumulation? | Yes | No | Yes | Yes |
| Best For | High-risk individuals | Healthy individuals | Estate planning | Funeral expenses |
Key Takeaway: Guaranteed issue life insurance is best for people who have no other options—but if you qualify for a better policy, take it.
How Much Does Guaranteed Issue Life Insurance Cost?
Guaranteed issue policies cost more than traditional life insurance because insurers take on higher risk.
Here’s what you can expect to pay:
Sample Pricing Table: Monthly Premiums for Guaranteed Issue Life Insurance
| Age | $10,000 Policy | $25,000 Policy | $50,000 Policy |
|---|---|---|---|
| 50 Years Old | $35 - $50 | $80 - $120 | $150 - $200 |
| 60 Years Old | $50 - $75 | $120 - $180 | $200 - $300 |
| 70 Years Old | $80 - $120 | $180 - $250 | $350 - $500 |
| 80 Years Old | $150 - $200 | $300 - $450 | $600 - $800 |
Understanding the 2-Year Waiting Period: What You Need to Know
Unlike other life insurance policies, guaranteed issue plans have a mandatory waiting period.
What Happens If You Pass Away Within the First 2 Years?
- Your beneficiaries do not receive the full payout.
- Instead, the insurer refunds the premiums paid, plus interest (usually 10-15%).
💡 Why does this rule exist? Insurers use this to prevent terminally ill individuals from buying large policies right before death.
If you need immediate coverage, consider a simplified issue policy instead.
Pros & Cons of Guaranteed Issue Life Insurance
Pros & Cons Table
| Pros | Cons |
|---|---|
| No medical exams required | Higher premiums than traditional life insurance |
| Guaranteed approval for everyone | Lower payout amounts |
| Fixed rates for life | 2-year waiting period before full payout |
| Cash value accumulation | Limited policy options |
Best for people who have no other coverage options.
Is Guaranteed Issue Life Insurance Worth It?
For some people, this is the only life insurance they can get—and it’s better than having nothing.
If you’re uninsurable due to health reasons, guaranteed issue gives you peace of mind knowing your family won’t struggle with funeral costs or medical bills.
If you qualify for a better plan (like simplified issue or term life), take that instead.
Get a Quote Today—Don’t Leave Your Family Unprotected.
Download Our Free Final Expense Planning Guide
Download Our Free Final Expense Planning Guide
Have you ever thought about how your family will manage financially when you’re no longer here? It’s not an easy topic, but planning ahead doesn’t have to be complicated—or expensive.
We created “Planning Ahead: A Legacy Without Worry” end-of-life planning to give you the honest truth about securing affordable coverage without getting tricked by confusing jargon or pushy sales tactics.
Whether you’re looking for peace of mind, a way to leave a legacy, or simply ensure your family isn’t burdened with debt, this guide will help you take control of your future, starting today.