Guaranteed Issue Life Insurance: What You Need to Know

Guaranteed issue life insurance accepts applicants without requiring a medical exam or health questionnaire. If you are within the eligible age range and live in a state where the product is offered, you typically cannot be turned down for health reasons.

These policies are popular among people who have been declined for other types of coverage or who want a straightforward application process.

What to expect with guaranteed issue

• No medical exam and no health questions on most applications
• Coverage amounts are usually smaller than fully underwritten policies
• Premiums are generally higher than simplified issue for the same benefit
• Many policies include a graded death benefit during the first two years
• Spousal coverage may be available on the same application

Graded death benefit explained

A graded death benefit means that if you pass away from natural causes within the first one or two years of the policy, your beneficiary may receive a return of premiums paid plus interest rather than the full face amount. After the graded period ends, the full death benefit typically applies. Accidental death is usually covered at the full benefit from day one.

Always review the specific policy language with a licensed agent before you apply so you understand exactly how benefits are paid.