What is guaranteed issue life insurance?
No health questions and no exam, but it costs more and the full benefit waits two or three years. When it is the right policy and when it is a last resort.
- Guaranteed issue life insurance takes everyone in its age range, usually about 50 to 80. No health questions, no exam.
- It costs the most per dollar of coverage. If you die of natural causes in the first two or three years, it pays back your premiums plus interest, not the full amount.
- Most people over 60 can get a policy that asks a few health questions, costs less and pays in full from day one. Apply there first.
Guaranteed issue life insurance is a policy that accepts everyone in its age range, usually about 50 to 80. No health questions, no medical exam, no check of your prescriptions. If you apply and you are within the ages, you are approved.
The trade
Two things pay for that certainty. The premium, the monthly bill for the coverage, is the highest per dollar of coverage in the market. And the full death benefit, the money the policy pays when you die, does not apply right away.
Most guaranteed issue policies have a graded period of two or three years. If you die of natural causes in that window, the policy pays back the premiums you paid plus interest, often around 10 percent. It does not pay the face amount, the full amount you bought. Accidental death is usually covered in full from day one. Once the graded period ends, the full benefit applies for any cause.
Who it is right for
- Someone in recent cancer treatment, or with a terminal diagnosis
- Someone on dialysis or oxygen, or who had a recent stroke or heart attack
- Someone with dementia, or living in a nursing home
- Anyone already declined by companies that ask health questions
Who should not buy it
Anyone who could get a simplified issue final expense policy instead. Simplified issue means the company asks a few health questions but skips the exam. Final expense is the small policy meant to pay for a funeral and last bills. Most people over 60 can qualify. That includes many with diabetes, controlled blood pressure, a cancer that is years behind them, and other managed conditions.
A level benefit policy pays the full amount from the first day, and it costs less. If you buy guaranteed issue without trying anywhere else first, and you die early in the graded period, your family can lose the whole benefit.
How to shop it
- Apply for a level benefit policy first. Let an agent pre-screen you, which means checking your health history before you apply
- Compare guaranteed issue premiums across companies. They differ more than people expect
- Check the maximum face amount, usually 25,000 dollars
- Confirm how long the graded period lasts and exactly what it pays in that window
Watch for television ads that show a very low monthly price. That price is almost always for a small amount of coverage at the youngest eligible age, and the benefit is graded.
Let us try the other doors first
We will apply where you have the strongest chance, and fall back to guaranteed issue only if we have to. Call our McAllen office at (956) 687 3334, or use the ZIP form on this page. Se habla español.
Common follow-up questions
Is guaranteed issue the same as final expense?
Not quite. Final expense is the category. Most final expense policies ask health questions and pay in full from day one. Guaranteed issue is the version that asks nothing and grades the benefit.
What happens if I die in year one?
On most guaranteed issue policies your beneficiary, the person you name to get the money, receives your premiums back plus interest. Accidental death is the exception. It is usually covered in full.
Can I be turned down?
Not for your health, as long as you are within the eligible ages. Applications still have age limits and each company's maximum face amount.
How much should it pay?
The death benefit is what your family receives. Most final expense policies here run between $5,000 and $25,000.
What kind of coverage?
Not sure is a fine answer. Your agent will walk you through the difference.
Male or female?
Rates are set separately for each, so this one changes the number.
When were you born?
Age is the single biggest thing that moves a final expense premium.
Any nicotine in the last year?
Cigarettes, cigars, chew or vape. Answering honestly keeps the quote accurate.
Who are we quoting?
So your agent knows who they are calling.
Where should we call you?
One call with your prices. No robocalls, no list selling.
Want a copy by email?
Optional. It means you have the numbers in writing after the call.
By pressing “Get my quote” you agree a licensed McAllen Insurance Group agent may contact you by phone, text or email at the details you provide, including by automated dialing. Consent is not required to buy. This is a request for a quote, not an application, and not an offer of coverage.
Getting your request to an agent
We have your request
An agent will call you with the prices. If you would rather not wait, call us now.
Call (956) 687 3334Monday to Friday, 9 AM to 6 PM. Se habla español.
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Gerino Alejos
Licensed insurance agent · License 3128710 · NPN 18243381
Owner of McAllen Insurance Group, an independent agency on North 10th Street in McAllen. Works with clients across Hidalgo, Cameron and Starr counties on Medicare, Marketplace health, life and auto coverage. Se habla español.