Definition - What does Guaranteed Issue mean?
Guaranteed issue is a type of life insurance that is issued without requiring the applicant to answer medical questions or undergo a medical examination.
While it is easier to acquire than life insurance policies that require an assessment of the applicant's medical history and the current state of their health, it can come with higher premiums.
Insuranceopedia explains Guaranteed Issue
Guaranteed issue life insurance policies are targeted to people with health issues and who are 50 or above. These insurance products assure the policyholder of a death benefit without making them go through a medical exam.
Critics of this type of insurance point out to its lesser value, noting that the death benefit is lower compared to standard life insurance policies and that the premium can also be more expensive. Those who intend to buy a guaranteed issue policy are encouraged to read the literature about it closely and carefully, with special attention paid to the details about the payout and benefits.