Guaranteed Issue Life Insurance: Answers Revealed

guaranteed issue life insurance
Guaranteed Issue Life Insurance: Answers Revealed

There are many types of life insurance coverage that protect from unforeseen circumstances.

Senior life insurance provides an affordable way to get permanent coverage to pay for funeral expenses. The best guaranteed issue life insurance companies provide reliable coverage at a low monthly cost.

What Is A Guaranteed Issue Life Insurance Policy?

Guaranteed issue is a whole life insurance policy with guaranteed acceptance. Other whole life policies require people to qualify based on their health. With a guaranteed acceptance plan, seniors will never be asked about their health or get a medical exam.

Whole life insurance provides permanent protection for your loved ones. These policies are most often used to cover the insured’s final expenses and are commonly referred to as burial insurance, funeral insurance, and final expense insurance.

Final expense coverage was built for seniors as an affordable life insurance option to not leave the financial burden of a funeral to their family.

Features of Guaranteed Issue Whole Life Insurance

There are many benefits of a whole life policy. The three most important features are price lock, coverage lock, and cash value.

Price Lock: The monthly premiums required for continued coverage never change. The locked-in price allows seniors to budget for the expense well into the future. There are never rate increases, unlike other types of plans.

Coverage Lock: The death benefit amount that is initially taken out never decreases. You can always take out additional protection, but the coverage amount will never decrease. This is not always true of other types of insurance coverage.

Builds Cash Value: A cash value accumulates with each payment made. Over time this account grows and allows the policy owner to borrow from it if they wish.

Simplified Issue Life Insurance

A few benefits make guaranteed issue policies stand out from a traditional whole life plan.

Smaller Policy Sizes: Guaranteed acceptance whole life comes in lesser policy amounts when compared to traditional plans. The smaller policy amounts are part of what makes simplified issue plans easier to get and more affordable. The smaller the death benefit, the smaller the premiums.

No Medical Exam: There are no medical exams required to qualify for any funeral expense insurance. However, health questions will be asked to qualify for most simplified issue insurance, but never a medical exam.

No Health Questions: Guaranteed Issue is the only simplified issue whole life insurance that does not require any health questions to be answered. All seniors qualify, regardless of health.

Guaranteed Life Insurance No Medical Questions

These policies are perfect for seniors in varying health situations.

Guaranteed acceptance plans are a great alternative for those that do not want to answer any questions and just want a quick and simple policy.

These policies are also a great option for seniors with compromised health who cannot qualify for other coverage. If you have one or more of the following medical concerns, a guaranteed acceptance plan is a perfect fit.

  • 24-hour continuous oxygen use
  • AIDS, ARC, HIV
  • Alzheimer’s Disease, dementia, or memory loss
  • Bedridden
  • Confined to hospital, nursing home, mental care, or long term care facility
  • Currently have or receiving treatment for invasive cancer
  • Diagnosed with a terminal illness
  • Implanted defibrillator
  • On hospice
  • Organ transplant
  • Receiving kidney dialysis

With the leniency of no health questions asked, there is at least a 2-year waiting period required. Burial insurance with no waiting period is possible if you do not have any of the above-listed medical concerns.

Guaranteed Acceptance Life Insurance With No Waiting Period

There are no guaranteed acceptance plans with no waiting period. Since there are no health questions asked, it raises the risk that the carrier is taking on. Just like life insurance financially protects your family, waiting periods are put into place to protect the insurance company.

Guaranteed issue life insurance companies will enforce a two or three-year delay in coverage before the beneficiary can receive the full death benefit. Two years is the most common length of time. In fact, there is no reason why anyone should get a policy that has a three-year delay because there are many companies with only a 2-year waiting period.

How Waiting Periods Work

If the insured passes away of natural causes within the first two years of the policy, the beneficiary will receive the paid premiums plus interest. The interest is usually around 10% and is predetermined when the policy is taken out.

If the insured passes away due to an accident, the beneficiary receives the full policy amount. This protection is often referred to as an “accidental death rider.”

Once the waiting period is over, the insured can pass away from any cause, accidental or natural, and the beneficiary will receive the full coverage amount.

bald senior man sitting in living room reading

How Much Does Guaranteed Issue Life Insurance Cost?

Insurance companies set their own pricing so the cost of coverage ranges. Most seniors pay $60 – $120 a month for guaranteed acceptance life insurance plans. The premium cost is highly determined by age, gender, and the policy amount. So, your guaranteed issue insurance quotes could be higher or lower than the average price. 

Age: The older someone is, the more life insurance will cost because it is assumed that the elderly will be paying into the policy for a shorter period of time.

Gender: Men pay more than women due to lifespan statistics. Women outlive men by an average of 4 years.

Policy Amount: Like most consumer goods, the more you get, the more you pay.

Best Age For Buying Guaranteed Acceptance Insurance

There are age limitations on who can get guaranteed life insurance. Commonly, people 50 – 80 are eligible for this coverage; however, age requirements vary by company.

If you are younger than this age range, other life policies will be a better fit. If you have outgrown this age range, final expense insurance is available up to 89 for those who qualify. If you are 81-89, you must answer favorably to the application’s health questions to obtain this protection.

Best Quality green ribbon

The Best Guaranteed Issue Life Insurance Companies

AIG is the best company for guaranteed issue insurance coverage. With competitive prices and riders that provide living benefits, AIG’s coverage is unmatched. The riders included in the quoted price allow for policyholders to accelerate the coverage due to nursing home confinement or terminal illness. 

Life insurance is state-regulated, so each company that wishes to do business in a state must meet that state’s individual guidelines. Not every insurance company is licensed in every state.

3 Top Guaranteed Acceptance Plans

Compared to other options on the market, these three products are the best guaranteed acceptance plans available.

AIG (American General)

  • Age Eligibility: 50 – 80
  • Death Benefit Size: $5,000 – $25,000
  • Health Questions: No
  • Waiting Period for Benefits: 2-years
  • States Covered: 49 states & DC (excluding NY)
  • A.M. Best Company Rating: A (excellent)
  • Full AIG Review

Gerber Life

  • Age Eligibility: 50 – 80
  • Death Benefit Size: $5,000 – $25,000
  • Health Questions: No
  • Waiting Period for Benefits: 2-years
  • States Covered: 49 states & DC (excluding MT)
  • A.M. Best Company Rating: A (excellent)
  • Full Gerber Life Review

Mutual of Omaha

  • Age Eligibility: 45 – 85
  • Death Benefit Size: $2,000 – $25,000
  • Health Questions: No
  • Waiting Period for Benefits: 2-years
  • States Covered: 50 states & DC
  • A.M. Best Company Rating: A+ (superior)
  • Full Mutual of Omaha Review

Guaranteed Acceptance Companies to Avoid

Due to the price point and lack of riders, these companies should be avoided, even if you get promotional material in the mail.

AARP | New York Life

  • Age Eligibility: 50 – 80
  • Death Benefit Size: $2,500 – $25,000
  • Health Questions: No
  • Waiting Period for Benefits: 2-years
  • State Availability: 48 states (excluding NJ & WA)
  • A.M. Best Company Rating: A+ (superior)
  • Full AARP | New York Life

Colonial Penn

  • Age Eligibility: 50 – 85
  • Death Benefit Size: $418 – $24,996 (depending on age)
  • Health Questions: No
  • Waiting Period for Benefits: 2-years
  • State Availability: 49 states (excluding NY)
  • A.M. Best Company Rating: A (excellent)
  • Full Colonial Penn Review

John Hancock

  • Age Eligibility: 55 – 80
  • Death Benefit Size: $2,000 – $20,000
  • Health Questions: No
  • Waiting Period for Benefits: 2-years
  • A.M. Best Company Rating: A+ (superior)
  • Full John Hancock Review

four adults sitting on couch smiling

What To Know About Guaranteed Issue Insurance

Before taking out coverage, you should know a few things to ensure that a guaranteed whole life insurance policy is best for you.

Should I Buy Guaranteed Acceptance Life Insurance?

A final expense insurance agent will be able to pre-qualify you for immediate coverage options. If you are unable to pre-qualify, you should get a permanent guaranteed acceptance plan.

These policies do not care if you have been denied coverage with other life insurance companies, so there is no harm in trying to get a simplified issue plan with medical questions and no waiting period.

Guaranteed issue plans are a great last resort, catch-all option.

A burial life insurance specialist from Willamette Life will be able to assist you in finding the best plan to meet your needs. With multiple plans to search through, we will help find an affordable option. You might be surprised what you can qualify for!

How Do I Find the Best Guaranteed Acceptance Life Insurance?

Many reputable insurance providers offer guaranteed protection to cover burial and cremation costs. There are three things to look for when taking out simplified issue life insurance.

Cost: Affordability is key. The price never changes once the policy is active, making sure that you can afford it well into the future.

Coverage: All guaranteed policies have a waiting period with the minimum being 2 years. There is no need to wait longer than two years for full coverage to start. Some insurance companies provide riders (additional coverage) for free, so compare the differences in policies to ensure you are getting the biggest bang for your buck.

Company: A company with a strong financial rating will provide the most security to your family. A financial rating signifies the strength of the carrier’s ability to pay future financial commitments when due. Never go below a B+ rating from AM Best.

What Does Guaranteed Life Insurance Mean?

Guaranteed life insurance is a type of whole life protection that everyone can qualify for. There are no medical questions asked and no exams required to get permanent guaranteed financial security. It is also referred to as guaranteed acceptance and guaranteed issue final expense insurance.

What Does Guaranteed Issue Amount Mean?

The guaranteed issue amount refers to the quantity of coverage that is taken out. This is also called the death benefit or coverage amount and is the money received by the beneficiary upon the insured’s death.

Who Offers Guaranteed Insurance?

Many life insurance companies offer guaranteed acceptance products.

More than likely, you’ve seen commercials or received mail advertising these policies. While they offer this coverage, mail and TV commercials are usually not the most affordable route to take.

Other providers that spend less on advertising can save you money in premium rates. If the plan comes to you without you seeking it out, it is not your best option.

What Is The Difference Between Guaranteed and Non-Guaranteed Life Insurance?

Guaranteed life insurance has very few requirements to get a policy, and virtually everyone is accepted. Life insurance that is not guaranteed goes through an underwriting process that has more restrictions. Seniors must apply and qualify to get any other type of life insurance that is not guaranteed acceptance.

Guaranteed policies have an automatic waiting period before full benefits are available, while many non-guaranteed policies offer coverage with no waiting period. Non-guaranteed life insurance is also known as simplified issue life insurance.

Policies that promise coverage to everyone come at a higher price point than the plans that seniors have to qualify for.

Riders are added coverage benefits. More rider options are usually available with non-guaranteed plans in comparison to guaranteed products.

Who Is Guaranteed Issue Life Good For?

A guaranteed issue final expense policy is good for seniors who cannot qualify for other life insurance coverage or do not want to answer health questions.

Seniors have to fit the accepted age range and must be in a healthy state of mind to legally enter into a contract. These are essentially the only two things that could prevent someone from getting guaranteed coverage.

Is Burial Insurance the Same as Guaranteed Issue Life Insurance?

Guaranteed acceptance life insurance fits under the umbrella of burial insurance. Both are considered simplified issue policies that require limited underwriting and are intended to cover final expenses. Funeral insurance plans that are not guaranteed acceptance will have health questions to qualify and will cost less.

elderly couple sitting on park benchFinal Thoughts

a. Guaranteed issue insurance accepts nearly everyone who wants a policy. Since these plans are lenient with allowing coverage, there is a 2 – 3 year waiting period before full coverage is available.

b. Most seniors will qualify for simplified issue burial life insurance with no waiting period, which is regarded as better protection than a guaranteed acceptance product.

c. Working with a specialized agency with access to many insurance companies will provide the best coverage options to meet your individual needs.

Give Willamette Life a call at 844-576-0019

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