How Does Guaranteed Life Insurance Work?
Often referred to as “guaranteed acceptance”, guaranteed life insurance policies have no underwriting of any kind, so you cannot be denied due to pre-existing conditions. All guaranteed issue policies have a mandatory waiting period of 2-3 years.
Any non-accidental death during the waiting period will only result in a refund of your premiums, plus interest (typically 10%). After the waiting period, the total life insurance benefit would pay out at any point.
Some life insurance companies will refer to the waiting period as a “graded death benefit” or “modified benefit.” All guaranteed life plans are whole life insurance. No company offers a guaranteed acceptance term life policy or a guaranteed acceptance universal life policy.
How Much Does Guaranteed Acceptance Life Insurance Cost?
Guaranteed acceptance policies can cost as little as $10 per month or as much as $500 per month. All final expense life insurance prices are based on your exact age, gender, and the amount of coverage you buy.
Ordinarily, life insurance rates would also be determined by your health. However, since guaranteed life insurance plans don’t ask about your health history, prior medical conditions will not affect the price. The table below has some sample monthly prices.
Do You Need A Guaranteed Issue Life Insurance Policy?
All too often, seniors mistakenly assume that guaranteed life insurance is their only option. However, most applicants with prior health issues (such as diabetes, high blood pressure, COPD, previous heart attacks, and much more) can absolutely qualify for a final expense life insurance policy with medical questions.
That would mean your coverage would have no waiting period and undoubtedly cost much less than a guaranteed acceptance policy. You should only resort to a guaranteed issue plan after you’ve exhausted trying to qualify for policies that do have underwriting.
Health Issues Where Guaranteed Acceptance Is The Only Way To Obtain A New Life Insurance Policy
Some health conditions have such a low life expectancy that guaranteed acceptance coverage is your only option. You need a guaranteed life policy if you have any of the following medical issues:
- AIDS or HIV
- Alzheimer’s or dementia
- Currently in a hospital, nursing home, long-term care or skilled nursing facility
- Actively have or are being treated for cancer (excluding basal or squamous cell and certain stage 0-1 cancers)
- Hospice care
- Mental incapacity
- Home health care
- Alcohol or drug abuse (or treatment for either) within the last 24 months
- Terminal illness
- Wheelchair usage due to an illness or disease
If you don’t have any of the above conditions, there is a very high chance that you can qualify for coverage with underwriting (lower rates and immediate coverage).
Best Guaranteed Issue Life Insurance Policies
- $10K Policy Cost $55.00/month*
- New Applicant Ages 45-85
- Death Benefit Options $3,000-$25,000
- 2-Year Waiting Period Yes
- $10K Policy Cost $41.01/month*
- New Applicant Ages 45-85 (50-75 in NY)
- Death Benefit Options $2,000-$25,000
- 2-Year Waiting Period Yes
- $10K Policy Cost $48.00/month*
- New Applicant Ages 45-85 (varies by state)
- Death Benefit Options $3,000-$20,000
- 2-Year Waiting Period Yes
Is There Guaranteed Issue Life Insurance With No Waiting Period?
There are no companies with life insurance products with no health questions and no waiting period. All guaranteed issue plans also have a minimum of a two-year waiting period.
Additionally, no company offers a 6, 12, or 18-month waiting period. Waiting periods are always 24 months or more.
Guaranteed Acceptance Vs. Simplified Issue (Aka “No-Exam”)
It’s essential to understand the difference between the terms “no medical exam life insurance” and “no health questions life insurance.” They are not the same.
A no-exam life insurance policy (also known as simplified issue) will have health questions but does not require a medical exam. If approved, there would be no waiting period.
On the other hand, a policy without health or lifestyle questions means it’s a guaranteed issue whole life policy with a two-year waiting period.
If you see a life insurance advertisement that only says “no medical exam,” that means there are still health questions that you must answer.
How To Get Life Insurance With No Waiting Period
To qualify for life insurance with no waiting period (you’re immediately covered for natural or accidental causes of death), you must apply for a policy that asks about your health history. In most cases, you won’t have to take a medical exam, but you will have to answer health questions.
Medical Conditions Eligibility
The table below lists various health issues and indicates whether they are eligible for a no-waiting period policy. Please note that your age, residence state, and the entirety of your health history may result in a different outcome.
| Health Condition | Eligibility |
|---|---|
| AIDS or HIV | Waiting period |
| Alcohol or drug abuse | <2 Yrs: Waiting period >2 Yrs: Immediate |
| Alzheimer’s disease | Waiting period |
| Amputation due to disease | Immediate |
| Angina (chest pains) | Immediate |
| Anxiety | Immediate |
| Arthritis | Immediate |
| Assistance with activities of daily living (ADL’s) | Immediate |
| Asthma | Immediate |
| Atrial fibrillation (Afib) | Immediate |
| Bipolar disorder | Immediate |
| Blindness | Immediate |
| Blood clots | Immediate |
| Blood thinners | Immediate |
| Bone marrow transplant | <5 Yrs: Waiting period >5 Yrs: Immediate |
| Cancer | Many variables to consider |
| Chronic bronchitis | Immediate |
| Chronic kidney disease | Immediate |
| Circulatory/heart surgery | Immediate |
| Cirrhosis | Immediate |
| Congestive heart failure (CHF) | Immediate |
| COPD | Immediate |
| Covid | Immediate |
| Crohn’s disease | Immediate |
| Cystic fibrosis | Immediate |
| Defibrillator | Immediate |
| Dementia | Waiting period |
| Depression | Immediate |
| Diabetes (Type 1) | Immediate |
| Diabetes (Type 2) | Immediate |
| Diabetic coma | Immediate |
| Diabetic nephropathy | Immediate |
| Dialysis | Immediate |
| Emphysema | Immediate |
| Enlarged prostate | Immediate |
| Epilepsy | Immediate |
| Fibromyalgia | Immediate |
| Graves disease | Immediate |
| Heart attack | Immediate |
| Hepatitis A | Immediate |
| Hepatitis B | Immediate |
| Hepatitis C | Immediate |
| High blood pressure | Immediate |
| High cholesterol | Immediate |
| Home health care | Waiting period |
| Hospice care | Waiting period |
| Insulin shock | Immediate |
| Insulin usage | Immediate |
| Lupus | Immediate |
| Mini stroke (TIA) | Immediate |
| Multiple sclerosis | Immediate |
| Nephropathy | Immediate |
| Neuropathy | Immediate |
| Obesity | Immediate |
| Organ transplant | <5 Yrs: Waiting period >5 Yrs: Immediate |
| Oxygen equipment | Immediate |
| Pacemaker | Immediate |
| Pancreatitis | Immediate |
| Parkinson’s disease | Immediate |
| Retinopathy | Immediate |
| Rheumatoid arthritis | Immediate |
Schizophrenia| Immediate |
|
| Seizure issues | Immediate |
| Sickle cell anemia | Age 0-49: Waiting Period Age 50+: Immediate |
| Sickle trait | Immediate |
| Sleep apnea | Immediate |
| Stroke | Immediate |
| Systemic lupus | Immediate |
| Terminal illness | Waiting period |
| Transient ischemic attack (TIA) | Immediate |
| Tumors (cancerous) | Many variables to consider |
| Tumors (noncancerous) | Immediate |
| Ulcerative colitis | Immediate |
| Wheelchair due to an illness or disease | Waiting period |
Frequently Asked Questions
Most guaranteed issue life insurance companies offer a maximum coverage of $25,000. That said, the AARP life insurance program offers a guaranteed issue policy with coverage up to $30,000. Additionally, you can purchase multiple policies from different companies to stack coverage.
No company offers guaranteed issue term life insurance. At present, whole life insurance is the only option if you’re looking for guaranteed acceptance coverage.
Guaranteed universal life (GUL) is not the same as guaranteed issue life insurance. A GUL policy is a type of permanent life insurance with a fixed rate and death benefit. All guaranteed universal life plans require underwriting, so you must answer health questions and possibly take a medical exam.
- Nationally licensed life insurance agent with over 15 years of experience
- Personal annual production that puts him in the top .001% out of all life insurance agents in the nation.
Anthony Martin is a nationally licensed insurance expert with over 15 years of experience and has personally served over 10,000 clients with their life insurance needs. He frequently authors entrepreneurial and life insurance content for Forbes, Inc.com, Newsweek, Kiplinger, and Entreprenuer.com. Anthony has been consulted as an expert life insurance source for dozens of high-profile websites such as Forbes, Bankrate, Reuters, Fox Business, CNBC, Investopedia, Insurance.com, Yahoo Finance, and many more.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
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Guaranteed universal life. https://www.policygenius.com/life-insurance/guaranteed-universal-life-insurance/
