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Read moreGuaranteed issue life insurance
Bottom line up front: Guaranteed issue life insurance accepts every applicant ages 50 to 85, regardless of health. No medical exam, no health questions, no possibility of being turned down. Coverage typically ranges from $5,000 to $25,000.
What is guaranteed issue life insurance?
Guaranteed issue life insurance is designed for people who cannot qualify for other types of coverage. There are no health questions, no medical exam, and no way to be denied. If you're within the age range (typically 50 to 85), you're approved.
This makes guaranteed issue the option of last resort for applicants with serious health conditions, a history of declined applications, or anyone who simply wants coverage without any underwriting process.
The trade-off is cost and coverage limits. Guaranteed issue policies are more expensive per dollar of coverage than other types of life insurance, and maximum face amounts are typically capped at $25,000. Most policies also include a graded death benefit, which limits the payout during the first two to three years.
Graded death benefit: what you need to know
The most important thing to understand about guaranteed issue policies is the graded death benefit. Because the carrier accepts everyone without health screening, they limit their risk by restricting the full death benefit during the first two to three years of the policy.
If the policyholder passes away during the waiting period (typically from natural causes), the beneficiary receives a return of all premiums paid plus interest, usually between 5% and 10%. Accidental death is typically covered at the full face amount from day one.
After the waiting period ends, the full death benefit applies regardless of cause of death. This graded structure is standard across the industry for guaranteed issue products.
| Period | Natural causes | Accidental death |
|---|---|---|
| Years 1 to 2 (or 3) | Premiums returned + 5–10% interest | Full face amount |
| After waiting period | Full face amount | Full face amount |
Who is it for?
- People who have been declined for other types of life insurance
- Applicants with serious health conditions (cancer, heart disease, COPD, diabetes with complications)
- Anyone ages 50 to 85 who wants guaranteed acceptance
- People who want to cover funeral costs without answering health questions
- Those who value simplicity and certainty in the application process
How it works
- 1
Confirm eligibility. You must be within the carrier's age range, typically 50 to 85. No health questions are asked.
- 2
Choose your coverage amount. Select between $5,000 and $25,000 based on your anticipated final expenses.
- 3
Set your beneficiary. Name the person or people who will receive the death benefit.
- 4
Start your policy. Premiums are fixed for life. The graded benefit period lasts two to three years, after which the full death benefit applies.
Coverage amounts & typical cost
Most guaranteed issue policies offer coverage between $5,000 and $25,000. Coverage is permanent: premiums never increase and the policy cannot be cancelled as long as premiums are paid.
Because there is no health underwriting, smoker and non-smoker rates are often identical. Rates are determined solely by age, gender, coverage amount, and carrier.
What could you pay?
Age 55
$62
/month
$15,000
permanent
Age 65
$88
/month
$15,000
permanent
Age 75
$135
/month
$15,000
permanent
Age 80
$178
/month
$15,000
permanent
Rates are illustrative based on current carrier averages. Your actual rate depends on your age, health profile, tobacco status, coverage amount, and carrier. Run a free quote to see your personalized rate in about 10 seconds.
Guaranteed issue rates are the same regardless of health or tobacco status because there is no underwriting. Rates vary by age, gender, coverage amount, and carrier.
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Frequently asked questions
Can I really not be turned down?
Correct. As long as you're within the carrier's age range (typically 50 to 85), you are guaranteed to be accepted. There are no health questions, no medical exam, and no review of your medical history. Acceptance is automatic.
Why is guaranteed issue more expensive?
Because the carrier has no information about your health, they price the policy to account for higher average risk. Applicants who can qualify for simplified issue or instant issue policies will almost always get a better rate. Guaranteed issue is designed for people who can't qualify for anything else.
What's the difference between guaranteed issue and simplified issue?
Simplified issue policies ask a limited set of health questions but don't require a medical exam. If you can answer those questions favorably, simplified issue offers lower rates and higher coverage amounts than guaranteed issue. Guaranteed issue asks nothing and accepts everyone.
How long is the graded benefit waiting period?
Most guaranteed issue policies have a two to three year waiting period. During this time, death from natural causes results in a return of premiums paid plus interest (typically 5% to 10%). After the waiting period, the full death benefit applies. Accidental death is usually covered in full from day one.
Is $25,000 enough coverage?
For covering funeral and immediate final expenses, yes. The average funeral costs $7,000 to $12,000. A $15,000 to $25,000 policy covers the funeral plus some outstanding bills. If you need more coverage, we can explore simplified issue or other options that may accept your health profile.
Should I try other options first?
Yes. Guaranteed issue should be your last option, not your first. Simplified issue, instant issue, and even some traditional policies accept applicants with many common health conditions at lower rates. Our agents compare 30+ carriers and will recommend guaranteed issue only if it's genuinely the best fit for your situation.
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Graded Death Benefits Explained
A graded period means natural-cause death pays premiums plus interest, not the full face amount. Here is how it works and when full coverage begins.
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