Guaranteed Issue Life Insurance: What You Should Know

Written by Rob Pinner

What is Guaranteed Issue Life Insurance

Guaranteed issue life insurance, also referred to as guaranteed acceptance life insurance is usually a whole life policy that requires no exam and asks no medical questions.

These types of policies are usually restricted to a maximum $25,000 death benefit while the premiums are guaranteed for the life of the contract. Guaranteed issue life insurance also builds cash value over time which can be borrowed from if the need should arise.

Since no health questions are asked, and no exam is required, your rates are solely based on:

  • Age
  • Gender
  • Location

The application process is simple in most cases and the life insurance can be purchased online instantly. Most companies email a copy of the policy to the client, which allows for a smooth process.

Guaranteed issue life insurance has two major drawbacks:

  1.  Extremely Pricey: Guaranteed issue life policies tend to be more expensive than traditional underwritten policies. These higher rates are based on the risk the insurer takes on by not asking medical questions or requiring an exam.
  2.  Coverage Doesn’t Start Day 1: When you purchase a guaranteed issue life policy it is very important to understand how the death benefit is paid out in the first 3 years. This will vary by company but most go like this:
    • The first 2 years, the full benefit is only paid out if death is by an accident. Premiums plus interest is paid out if death is by an illness.
    • After 2 years, full benefit is paid out for if death is by accident or sickness.

When Guaranteed Issue Life Insurance is a Good Buy

Guaranteed issue life insurance is an expensive whole life product designed to provide coverage to consumers who can’t otherwise get life insurance. It is only a good buy if you have medical conditions that prevent you from qualifying for any other type of life insurance. These types of conditions include:

  • Recent heart attack or stroke
  • HIV
  • Cancer in the past 3 years
  • Confined to a wheelchair
  • In a nursing home
  • Have cognitive disabilities
  • Amputations

Even if you have had some health issues you may still have another option other than guaranteed issue life insurance. You should inquire about simplified issue life insurance first.

Simplified issue life doesn’t require a medical exam and has more liberal underwriting than a traditional fully underwritten policy. These policies also pay the full death benefit for illness or accident from day one of coverage, there is no waiting periods.

If a guaranteed issue life insurance policy is your only choice, then check out our list of the top 4 guaranteed issue whole life insurance companies below.

best guaranteed issue life companiesBest Guaranteed Issue Life Insurance Companies

AIG Guaranteed Issue Whole Life

AIG Life Insurance Company is one of the big boys when it comes to life insurance. They have more than 88 million policyholders in more than 130 countries.

AIG has been in business since 1919 and has an “A” rating with A.M. Best. AIG is a strong financially sound life insurance company, which is vital when it comes time to pay claims.

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AARP Guaranteed Acceptance Whole Life

AARP guaranteed acceptance whole life insurance is sold through New York Life Insurance company to its members and their spouses. AARP offers a no medical guaranteed issue whole life insurance policy with very competitive rates.



Gerber Life Insurance

Gerber Life Insurance company is best known for their Gerber Grow Up Plan for children, but they also offer a guaranteed issue whole life policy.

Gerber has been doing business since 1927 and boasts an “A” rating with A.M. Best. They have over $45 billion of life insurance on the books with over 3.3 million policies.

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Vantis Life

This company is probably one you haven’t heard to often, however, they have been in business since 1942. Based out of Windsor, Connecticut, Vanits Life merged with The Penn Mutual Life Insurance Company in 2016. Penn Mutual carries an “A+” rating with A.M. Best while Vantis Life boasts an “A-“.

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Worst Guaranteed Issue Whole Life Insurance Companies

The chart below lays out the worst guaranteed issue whole life insurance companies:

  • Americo Life Insurance
  • Colonial Penn Life Insurance
  • Columbian Life Insurance
  • MassMutual Life Insurance

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My Two Cents

While a guaranteed issue life insurance policy is not the first choice ever, it does have some value to certain consumers. Guaranteed issue life has limited death benefits, so if you have large debts or obligations, this type of policy would not be the right choice.

If your unhealthy and only looking for burial insurance or final expense, then a guaranteed issue whole life insurance policy would be ideal. Always make sure you understand the policy completely before purchasing. Work with an experienced agent with access to multiple insurance carriers to ensure you find the best rate available. If you have any questions or comments please don’t hesitate to give us a call.

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Rob Pinner
Rob Pinner

My name is Rob Pinner and I own EasyQuotes4You. At EasyQuotes4You we aim to make your life insurance buying process a smooth and stress free transaction.  We are independent life insurance agents servicing all 50 states. I have over 15 years of experience and have focused solely on life insurance for the past 5 years. If you have any questions or comments please don’t hesitate to give us a call.

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