What Is Guaranteed Issue Life Insurance?

Typically advertised to seniors and people who have diagnosed medical conditions, guaranteed issue life insurance polices are sold without any medical examination or questions. The application process is quick and you cannot be denied insurance unless you are living in a long-term care facility or a hospital.


Premiums for guaranteed issue life insurance policies tend to be high. With no medical exam, the insurance company bases the cost on the applicant’s age and sex. Plus, if you want to use a payment plan, the cost will be even higher.

Limitation in Coverage

Because there is no medical history, insurance companies protect themselves by limiting the face value of the policy. Most of these policies are small, typically less than $20,000.

Guaranteed Coverage

As implied by the name, coverage is guaranteed as long as you are not living in a hospital or long-term care residence. The insurance is meant for people who cannot purchase other life insurance because of health issues. Typically, this type of insurance is purchased to cover the cost of funeral expenses.

Other Pros of Guaranteed Life Insurance

The enrollment form is very simple and the applicant can be insured quickly as no medical exam is required. The rates will not increase as you age and the coverage is permanent.

Other Cons of Guaranteed Life Insurance

The two biggest negatives are the limited amount of coverage and the high cost. Some policies also limit the benefits that can be claimed during the policy’s first few years. It is also possible, based upon your age and health, to end up having paid more in premiums than the death benefits the policy provides.