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Guaranteed Issue Life Insurance [You Will Be Accepted if You Meet The Following Criteria]

guaranteed acceptance life insurance

Guaranteed issue life insurance means just that. If you meet a couple requirements, you are guaranteed to be accepted, which is why guaranteed issue is also known as guaranteed acceptance life insurance.

The requirements are pretty simple. You must be within the age limits, typically ages 50-80, and you must reside in a state where the guaranteed issue policy is available.

If you meet these two requirements, you will qualify for a guaranteed acceptance life insurance policy.

So, that brings us to the question,

What is Guaranteed Issue Life Insurance?

Guaranteed issue life insurance is typically whole life insurance. It is important to understand the difference between term life vs whole life when discussing guaranteed issue policies.

The most important difference you need to know is that term life coverage is temporary and whole life coverage lasts your entire lifetime.

This is an important distinction because there are companies out there that offer final expense burial insurance as a term life policy. These term policies have increasing premiums every five years, so that after a decade or two, the premiums have increased dramatically.

And not only do the term life premiums increase, but the term policy comes to an end upon a certain age specified in the contract.

The good news is these policies are typically not guaranteed acceptance, so if you are looking for a guaranteed issue policy you can usually be confident that it is whole life insurance and not term.

Best Guaranteed Issue Life Insurance Companies

The two best companies offering guaranteed issue policies are AIG and Gerber.

You can read more on these two companies by visiting the following:

Guaranteed Issue Life Insurance Rates

Please check out our different articles that show whole life insurance rates by age for:

Benefits of Whole Life Insurance

It is worth pointing out some of the key benefits of whole life insurance. These three benefits are guarantees, exclusive to a whole life policy.

Three benefits of whole life insurance include:

  • Guaranteed Premiums
  • Guaranteed Cash Value
  • Guaranteed Death Benefit

Guaranteed premiums means that your premiums are locked in. With fixed premiums you will know what your payment for life insurance will be.

The advantage here is with budgeting, since you don’t want to be surprised with a price hike in retirement.

Guaranteed cash value means that your cash value will grow as you make more premium payments. And over enough time, you can use your cash value to buy a paid-up policy, where no more premium payments are due.

Guaranteed death benefit simply means that your death benefit is guaranteed to be paid out to your beneficiary when you die, as long as you met your obligation of paying your policy premiums.

Pros and Cons of Guaranteed Issue Life Insurance

Guaranteed Acceptance

Let’s start with the obvious benefit of guaranteed acceptance life insurance, virtually anyone can qualify as long as they meet the 2 main requirements of age and domicile.

So, if you have a pre-existing condition, such as cancer, heart disease or stroke, you can still qualify for life insurance.

Which is great, because those health conditions will usually be an automatic decline for most life insurance companies.

Cash Value

Another advantage of guaranteed issue life insurance is that it is whole life, which build cash value. The cash value can be accessed via withdrawals or loans, so if you are in a financial bind, you have easy access to money.

Cash value can also be used to pay your premiums for a period of time. You can alert the insurance company to your need and they can help you allocate cash value to pay your premium.


A negative of guaranteed issue products is the price. Because there are zero health questions and no medical exam, the insurance company has no idea your current health status.

As a result, the company will charge a higher cost per dollar of coverage than other types of life insurance.

Graded Death Benefit

Another disadvantage of guaranteed issue is the graded death benefit.

A graded death benefit means the full death benefit is not paid in full until after a 2 or 3 year period has passed.

As mentioned above, this is because the insurer has no idea your health status and they use the graded death benefit to protect themselves.

After the 2 or 3 year graded death benefit period has passed, the full death benefit coverage is in effect.

And note, the full death benefit will be paid from day one if death occurs due to an accidental death.

2 comments… add one
  • Doe W. November 18, 2020, 1:14 am

    I provide support for my 2 elder sisters- Pam is 73 and in a care facility in NJ, Deb is 71 in senior housing in MA and our family burial plot is in NY. I want to take out a small immediate full payout policy on each so I can have the resources to pay for cremation and transit of items to me for a later trip home with them to the family plot if things happen during COVID times and I cannot travel now. I would appreciate information on this option
    Many thanks

    • IBUSA November 18, 2020, 12:47 pm


      It sounds like you are looking to purchase a life insurance policy that each of your sisters would need to be able to “medically qualify” for. For this reason, it would be best for you to give us a call so that we can learn a little bit more about each one of your sister’s medical “status” before we make any assumptions about what they may or may not be able to qualify for.



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