Guaranteed Issue

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. It can be worth comparing guaranteed issue policies against the best no medical exam life insurance companies, since simplified-issue products often offer larger death benefits at similar prices.

While it is easier to obtain than life insurance policies that assess the applicant’s medical history and current health, it often comes with higher premiums.

Insuranceopedia Explains Guaranteed Issue

Guaranteed issue life insurance policies are designed for individuals with health issues or those aged 50 and above. These policies guarantee a death benefit without requiring a medical exam. Buyers in this age range can also look at the best life insurance companies for seniors, which often offer guaranteed issue alongside other products aimed at older applicants.

Critics of guaranteed issue life insurance highlight its lower value, pointing out that the death benefit is typically smaller compared to standard life insurance policies, and the premiums can be higher. Anyone considering purchasing a guaranteed issue policy is advised to carefully review the policy details, paying special attention to the payout structure and benefits. Many guaranteed issue policies are marketed as final expense life insurance, designed to pay for funeral costs rather than replace lost income.