Guaranteed Issue Life Insurance

Guaranteed issue life insurance is a permanent policy with no health criterion. It’s usually intended for older folks who may have health conditions that prevent them from getting other forms of life insurance.

The Purpose of Guaranteed Issue Life Insurance

Guaranteed issue insurance focuses on covering funeral and burial costs without taking from an inheritance or estate. Typically, guaranteed issue death benefits are smaller than traditional life insurance products, and the premiums are higher.

How Does It Work?

A guaranteed issue policy is oriented towards providing a form of life insurance for those who may not qualify for other options because of age or health. Most policy seekers can’t be turned down unless they land below or above an age range requirement. 

The death benefit payout usually varies from $5,000 to $25,000. If the policyholder passes away within the first few years after being issued the policy, the insurers may have the option to refund the premiums paid up to that time. This is known as graded benefits, and it may result in a slightly lower premium for the policyholder.

When to Buy a Guaranteed Issue Policy

Premiums for these policies can be much higher than for term life and even higher than whole life insurance policies in certain cases. High premiums and a low death benefit make them a last-ditch effort for most people. 

However, if you’re having trouble getting life insurance after a term life policy has completed, or because of advanced age or health concerns, a guaranteed issue policy can help you fund your final expenses. It can also protect your beneficiaries from increasing funeral and burial costs.

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Other Uses for a Guaranteed Issue Policy Benefit

Many guaranteed issue policies are meant to cover final expenses, however, the cash payout can be used for anything. If burial and funeral costs are already settled, the beneficiary can use the death benefit for any purpose, such as:

  • Traveling
  • Buying a car
  • Medical bills
  • Paying for college
  • Making a down payment on a home
  • Paying for a wedding or honeymoon
Benefits of Guaranteed Issue Life Insurance

Guaranteed issue policies typically don’t require a medical exam, and applicants can’t usually be denied for health reasons — except for people already in end-of-life care for a fatal condition. If other kinds of insurance are even more costly because of age or health, this policy can help cover some final expenses.   

For questions about Guaranteed Issue Life Insurance or to get a quote, call 830-217-6711 today.