Guaranteed issue life insurance comes with guaranteed approval because there are no health or lifestyle questions when applying. A guaranteed policy sounds almost too good to be true, but it isn’t.
There are significant drawbacks, such as a two to three-year waiting period and higher premiums. In fact, for most seniors, a guaranteed acceptance policy is not the only way they can get coverage despite prior health issues.
Learn how these plans work, the best guaranteed life insurance companies, the exclusions you need to be aware of, if you need it, and the cost.
How Does Guaranteed Life Insurance Work?
Since approval is guaranteed, there is no underwriting of any kind and a mandatory 2-3 year waiting period. Any nonaccidental death during the waiting period will result in a refund of your premiums plus interest (typically 10%).
In other words, your beneficiaries will not receive the full death benefit amount for death due to natural causes.
Some life insurance companies will refer to the waiting period as a “graded death benefit” or “modified benefit.” After the waiting period, the total life insurance benefit would pay out at any point.
All guaranteed life plans are whole life insurance. No company offers a guaranteed acceptance term life policy or guaranteed acceptance universal life.
Whole life insurance is a type of permanent life insurance that builds cash value and has ironclad guarantees.
The monthly premiums will never increase, and the coverage will never decrease or expire.
Since it’s life insurance coverage, the payout will be a tax-free cash payment to your loved ones. They can use the money for funeral costs, medical bills, credit card debts, or anything else.
| Guaranteed Issue Whole Life Insurance Policy Features | |
|---|---|
| Policy Type | Whole Life Insurance |
| Policy Duration | Lifetime |
| Fixed Premiums | Yes |
| Typical Coverage Options | Up to $25,000 |
| Health Questions | No |
| Medical Exam | No |
| Waiting Period | 2-3 Years |
| Typical New Applicant Age Range | 45-85 |
Pros And Cons Of Guaranteed Issue Whole Life Insurance
The best pro of a guaranteed issue life insurance policy is that you can’t be denied coverage due to a prior medical condition. The biggest con with this type of coverage is the mandatory waiting period and the higher premiums.
All policies with no health questions have a waiting period. Additionally, they are typically more expensive since the insurance companies take on substantial risk not knowing about the applicant’s health.
- Cannot be denied due to prior medical history
- Whole life insurance with a fixed cost and lifetime coverage
- Can buy small amounts of coverage to cover final expenses
- Fast application process
- No health questions or medical exam
- Pays out the full amount for accidental death even during the waiting period
- Available for seniors up to age 85
- Allows people with “uninsurable” conditions to get new coverage
- No restrictions on how beneficiaries spend the money
- Can be purchased online, through the mail, or via an insurance agent
- 2-3 year waiting period before the policy can payout for natural causes of death
- Higher premiums compared to other life insurance options
- Low coverage maximums
- Typically only available to seniors
- After many years, it’s possible to pay more into the policy than it would pay out
- No living benefit riders for nursing home confinement or a terminal illness
- Typically, there are no optional riders you can add on
- Depending on your preferences, the payout may not be enough to pay for funeral costs
Do You Need A Guaranteed Issue Life Insurance Policy?
Most people, including seniors with pre-existing conditions, do not need a guaranteed issue life insurance policy. Guaranteed issue whole life insurance is only worth buying if you have high-risk medical conditions that render you uninsurable via any other policy.
All too often, seniors mistakenly assume that guaranteed life insurance is their only option, but most applicants with previous health issues can qualify for a burial insurance policy with medical questions.
For example, final expense policies have very lenient underwriting. Most seniors qualify for final expense coverage despite high-risk medical issues such as diabetes, high blood pressure, COPD, or previous heart attacks.
You should only consider a guaranteed issue plan after you’ve exhausted all other options that do have underwriting.
Health Issues Where Guaranteed Acceptance Is Your Only Option
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, or skilled nursing facility
- Actively have or are being treated for cancer (excluding certain stage 0-1 cancers)
- Hospice care
- 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).
How Much Does Guaranteed Acceptance Life Insurance For Seniors Cost?
Most guaranteed acceptance policies cost about $50-$300 monthly for $10,000-$20,000 in guaranteed coverage. All final expense life insurance quotes 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. But since guaranteed life insurance plans don’t ask about health history, prior medical conditions will not affect the price.
The table below has some sample monthly prices.
| AGE | Female Guaranteed Issue $10,000 | Male Guaranteed Issue $10,000 | Female Guaranteed Issue $25,000 | Male Guaranteed Issue $25,000 |
|---|---|---|---|---|
| 45 | $27.90 | $36.40 | $68.25 | $89.50 |
| 50 | $30.40 | $40.20 | $74.50 | $99.00 |
| 55 | $37.50 | $45.40 | $92.25 | $112.00 |
| 60 | $42.70 | $56.90 | $105.25 | $140.75 |
| 65 | $50.00 | $68.50 | $123.50 | $169.75 |
| 70 | $63.90 | $86.70 | $158.25 | $215.25 |
| 75 | $88.50 | $113.30 | $219.75 | $281.75 |
| 80 | $126.90 | $157.10 | $315.75 | $391.25 |
| 85 | $157.70 | $192.70 | $392.75 | $480.25 |
Best Guaranteed Life Insurance Companies
Mutual of Omaha and AAA are the best guaranteed acceptance final expense companies. However, Physician’s Mutual life insurance is cheaper at certain ages.
Our rankings also revealed:
- Gerber Life Insurance and AIG are reputable and financially sound, but their rates are much higher than most.
- AARP life insurance program via New York Life and Colonial Penn aren’t competitive in terms of cost. For example, check out a Colonial Penn rate chart or how much AARP final expense insurance costs relative to other insurance providers.
Below is a table that outlines all the top guaranteed issue life companies.
| Company | Coverage & New Applicant Age Limits | Payout During Waiting Period & Duration | Cost |
|---|---|---|---|
 | • $2,000-$25,000 • 45-85 | • 110% Of Premiums • 24 Months | See Quotes |
 | • $5,000-$25,000 • 45-85 | • 130% Of Premiums • 24 Months | See Quotes |
 | • $5,000-$25,000 • 50-80 | • 110% Of Premiums • 24 Months | See Quotes |
 | • $5,000-$25,000 • 50-80 | • 110% Of Premiums • 24 Months | See Quotes |
 | • $5,000-$25,000 • 50-80 | • 110% Of Premiums • 24 Months | See Quotes |
 | • $1000-$25,000 • 40-80 | • 110% Of Premiums • 24 Months | See Quotes |
 | • $3,000-$20,000 • 45-85 | • 110% Of Premiums • 24 Months | See Quotes |
 | • $2,000-$20,000 • 45-80 | • 110% Of Premiums • 24 Months | See Quotes |
Is Guaranteed Issue Life Insurance With No Waiting Period Real?
A no-health questionnaire plan always has a waiting period in the first two to three years of the policy. No life insurance products (from any company) have no health questions and no waiting period.
All guaranteed issue plans also have a minimum of a two-year waiting period. No company offers a 6-, 12-, or 18-month waiting period.
No Exam Vs. No Health Questions
It’s essential to understand the difference between the terms “no medical exam life insurance” and “no health questions life insurance.”
They do not mean the same thing.
- No health questions life insurance: A guaranteed issue whole life policy with no health or lifestyle questions.
- No medical exam life insurance: Any life insurance that has health questions but does not require a medical exam. Often, these types of policies are called “simplified issue” or “no-exam” coverage.
If you see s life insurance advertisement that only says “no medical exam,” that means it still has health questions.
Guaranteed Life Insurance Alternatives
If a guaranteed issue life insurance policy isn’t sounding like a perfect fit for you, but you still want to avoid a medical exam, there are a few other options worth considering.
Simplified issue life insurance
While not entirely guaranteed, simplified issue life insurance requires no medical exam, and the application process involves answering a simplified set of health-related questions. It provides a quicker approval process compared to traditional underwritten policies, making it a more accessible option for those who want coverage without extensive medical scrutiny.
The coverage might come with higher premiums compared to fully underwritten policies due to the increased risk for the insurer, and coverage limits are typically lower.
Accelerated underwriting
Insurers use accelerated underwriting to leverage advanced data analytics and technology to expedite the underwriting process. Instead of a comprehensive medical exam, they may rely on your electronic health records, prescription history, and other sources to assess your health and determine your eligibility.
It’s important to note that eligibility depends on factors such as your age, coverage amount, and overall health. While it offers a faster application process, not everyone may qualify, and traditional underwriting with a medical exam might still be required in some cases.
Accidental death insurance
This type of policy pays out a death benefit only if the insured’s death is the result of an accident. Keep in mind that it will not cover deaths due to illness or natural causes.
How To Get Life Insurance With No Waiting Period
To qualify for life insurance products that immediately cover you for natural causes, you must apply for a policy with underwriting. In most cases, you won’t have to take a medical exam, but you will have to answer health questions.
At the very least, most applicants can qualify for a senior burial life insurance policy with first-day full coverage.
Medical Conditions Eligibility
The table below has various health issues and whether they are eligible for a no-waiting period policy.
Please remember that your age, resident state, and the totality of all your health issues 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 of $25,000 in coverage. Keep in mind that you can always buy multiple policies from different companies.
No company offers guaranteed issue term life insurance. Lifeshield National Insurance Company used to but discontinued the product in July 2023. 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 have underwriting, so you must medically qualify.
- 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.
Choice Mutual often cites third-party websites to provide context and verification for specific claims made in our work. We only link to authoritative websites that provide accurate information. You can learn more about our editorial standards, which guide our mission of delivering factual and impartial content.
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Lifeshield National Insurance Company. https://lifeshieldnational.com/
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Guaranteed universal life. https://www.policygenius.com/life-insurance/guaranteed-universal-life-insurance/
