What Is A Guaranteed Issue Life Insurance Policy?

Life insurance plans that cover the whole of your life offer lifelong policyholder protection, which means that your beneficiaries will receive a death benefit guaranteed when you pass away. The whole life insurance policy also includes cash value that increases over time. The accumulated value can be utilized throughout the policyholder’s life if they want to borrow or cash it out.
Complete life insurance offers a permanent policy by paying premiums to ensure the insurance policy is in effect.
In the whole life market policy, there’s one known as Guaranteed Issue Life Insurance, a lifetime policy that doesn’t require a medical exam! Seniors generally opt for this type of insurance since they cannot be denied coverage due to their health condition because they have no medical examination.
Sounds fascinating.
However, there’s a different side to the coin, too.
Life insurance policies with guaranteed issues always have a waiting time of 24 months. If a policyholder passes away during this waiting period, there’s no death benefit paid to the beneficiaries. However, the premiums you pay for the entire policy are returned, usually with a 10% interest rate, to your heirs.
It’s not true that an individual receives nothing when they enroll in the insurance policy. Still, if they die within the waiting time, however, beneficiaries do not receive the expected death benefit. The payout overall is lower, as you’d imagine it to be.
Here’s an example of sampling rates:

Applicant to receive $20,000 in insuranceLife insurance with guaranteed issueWhole life insurance
Female, 70 years old$156/month$103/month
Female, aged 80 years old$349/month$194/month

Pros and Pros and Guaranteed Issue Life Insurance

The following list contains the advantages and disadvantages we’ve put together to make it simple for you to decide if this kind of policy will benefit you.


  • Simple to apply
  • There is no medical examination
  • No complicated health questions
  • The low cost of premiums is due to the lack of coverage
  • If the policyholder dies within the waiting period, the tips are returned.


  • Low coverage
  • There is no death benefit if the policyholder dies in the waiting period

Guaranteed Life Insurance for Seniors

Many seniors find their health getting worse as they age due to the age factor. They aren’t as healthy and robust as they were during their 40s. Many seniors are denied life insurance plans due to their health issues, and it’s risky to spend money on their health.

This is the point where guaranteed life insurance coverage comes in. You can choose not to undergo a medical exam or health-related questions. This policy cannot be restricted to anyone who is a senior due to their health.

Here are a few of the most dependable acceptance-guaranteed life insurance companies that benefit not just seniors but also middle-aged folks.

AAAAIGGerber Life InsuranceMutual of OmahaNew York Life
Age Availability45-8550-8550-8045-8550-80
Waiting Period2 years2 years2 years2 years2 years
Payout During Waiting PeriodPremiums paid + 30% interestPremiums paid + 10% interestPremiums paid + 10% interestPremiums paid + 20% interestPremiums paid + 10% interest
Minimum Coverage$5,000$5,000$5,000$2,000$2,500
Maximum Coverage$25,000$25,000$25,000$25,000$15,000

Note Rates for the sample was retrieved on the internet, with the help of ValuePenguin.

Based on the information below, Gerber guaranteed life insurance policy is best suited to older people due to the age-related coverage and the age limit. Gerber guarantees offer excellent benefits and choices for people of any age without a medical examination.

Most people are denied coverage due to a pre-existing condition. If they purchase the guaranteed issue life insurance policy, they can get protection without having to take a medical examination.

Simplified Issue Life Insurance

Simplified issue life insurance is an option that requires an easy application procedure, and there is no medical exam. This kind of insurance is perfect for those who need instant life insurance plans to be approved and don’t wish to sit around waiting.

Because the procedure is easy and a lot easier, many choose this life insurance plan as lifelong security.


  • Convenience
  • The availability
  • Rapid approval
  • There is no medical examination
  • Great for seniors who have pre-existing health problems.
  • Privacy
  • Coverage that isn’t expensive


  • Limited selection
  • Are there riders included in the policy, which can cost more
  • Smaller death benefits
  • Waiting period

While this medical exam policy is in place and aids seniors in obtaining life insurance, specific medical ailments aren’t eligible for this policy, for example:

  • HIV or AIDS
  • Dialysis
  • Heart attack or surgery within the last 12 months
  • Stroke within these last twelve months

Suppose you’ve been diagnosed with any of these ailments. In that case, it is necessary to be able to endure a lengthy waiting period for the beneficiaries of your estate to get a total death benefit. A majority of companies will offer an amount of premium plus 7 to 10% interest to beneficiaries to cover the loss; however, they will not provide a full death benefit.


Life insurance with the guaranteed issue isn’t specifically designed for senior citizens; however, older people are more likely to be attracted by it because it doesn’t require a medical examination. The typical age range is between 40-80 years old.

It is essential to speak with your insurance provider and inquire about your options. You may not be eligible for guaranteed life insurance policies for a different reason. Contact an agent who can guide you through your options and recommend the best choice over the long term. Refrain from making assumptions and begin shopping around for a suitable policy.

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