Life insurance has many purposes: It can bring peace of mind, support loved ones financially and play an important role in an estate plan. But it can be confusing to know which type of policy is right for you. For some older individuals, guaranteed life can be a good choice. Guaranteed life insurance essentially means that approval is guaranteed regardless of any health issues or other risk factors. In this guide, Bankrate explores the ins and outs of guaranteed life insurance so you know what to expect if you’re interested in this option.
What is guaranteed issue life insurance?
Guaranteed life insurance is more technically known as guaranteed issue life insurance or guaranteed acceptance life insurance. This type of life insurance policy does not require any health questionnaires or medical exams to get approved.
Without a required medical exam as a potential blocker, most eligible applicants can get coverage. Guaranteed issue life insurance may be a great option for seniors with a history of health problems or individuals who don’t qualify for traditional life insurance.
Guaranteed life insurance is a whole life policy, meaning it offers coverage for your entire lifetime. When you do pass away, your beneficiaries can begin the death benefit claim process to help pay for things like your funeral or unpaid debts.
Guaranteed life policies often include a graded death benefit. This is typically a two-year waiting period before the full death benefit is available. If death occurs during this waiting period, your beneficiaries typically only receive a refund of the paid premiums or a portion of the death benefit, depending on the policy. The exception is an accidental death. If death occurs as a result of an accident — versus of natural causes, such as cancer or a heart attack — then the full death benefit can be paid out during the graded death benefit period. Once this waiting period is over, the beneficiaries are eligible for the full death benefit regardless of the cause of death.
Who is eligible for guaranteed issue life insurance?
Generally, anyone between the ages of around 50 to 80 is eligible for guaranteed issue life insurance. Requirements can vary from insurer to insurer, however. Although you are not required to be in poor health for this type of coverage, it is particularly attractive to people who have a chronic illness or underlying health challenges.
How does a guaranteed life insurance policy work?
Typically, it is simple to apply for guaranteed life insurance. Quotes are often available online, at the insurer’s website, and are likely to ask only a few questions. You will not be required to undergo a medical exam or even answer questions about your health. In some cases, you will be able to purchase your policy almost instantly.
Once you have the policy, a portion of your regular premium payments will go into a cash value account, although the amount in this account will typically be lower than in other types of permanent life insurance. After the policyholder passes, beneficiaries receive the full death benefit, as long as the graded period has passed, or it can be assigned directly to cover funeral expenses.
How much is guaranteed issue life insurance?
Guaranteed issue life insurance premiums vary greatly, depending on your personal characteristics as well as the insurance company you apply to. Your premium may also take into account your location, gender and the amount of coverage you want. Your age will also play a primary role. The older you are, the more you are likely to pay for your policy.
Because the insurer does not have access to your health data, they won’t have an accurate risk profile to base pricing on, as would be the case with other types of coverage. That means the cost of your guaranteed life policy is likely to be on the high side, so the company can cover its risk. Keep in mind, too, that your coverage amounts are likely to be fairly low, with many companies capping death benefits at $25,000. Therefore, on average, you pay a relatively high price for a lower amount of coverage compared to a traditional term life insurance policy.
Companies that offer guaranteed issue
Not all insurers offer guaranteed issue life insurance, although many do. Based on Bankrate’s research, the following companies may be worth looking at when you are considering a guaranteed issue policy.
- Colonial Penn: Colonial Penn’s primary focus is on individuals over the age of 50. It offers coverage amounts of $1,000 to $25,000, with a graded benefit period of two years.
- Corebridge: Corebridge, formerly AIG, offers coverage amounts of $5,000 to $25,000. However, it scored below average in J.D. Power’s 2024 Life Insurance Customer Satisfaction Study.
- Globe Life: Globe Life offers several types of term and permanent coverage that do not require a medical exam, with death benefits as high as $50,000 for some. It scored below average on J.D. Power’s customer satisfaction study.
- Mutual of Omaha: Winner of the 2025 Bankrate Award for Best Guaranteed Life Insurer, this company offers coverage to those from ages 45 to 85, with death benefits up to $25,000. If the policyholder dies during the graded death benefit period, beneficiaries receive all paid premiums plus 10 percent interest.
- Transamerica: Transamerica offers final expense coverage for up to $50,000. Some policies are available to individuals as young as newborns. Online tools offer funeral planning resources and online assistance with legal documents, also.
- Gerber: Guaranteed issue is available from Gerber for those ages 50-80, for up to $25,000. Policy approval time can be near-instant, although the company has few online tools for policy management.
- State Farm: State Farm earned the top spot in J.D. Power’s 2024 Customer Satisfaction Study, suggesting that the company places a high value on its relationships with its policyholders. It has strong digital tools and a robust presence nationwide, with more than 19,000 agents across the country to help you find the best policy for your needs.
- TruStage: Policies are underwritten by CMFG Life Insurance Company. Individuals must be credit union members to apply. Online application is available, with coverage starting when your first payment clears.
Is guaranteed life insurance worth it?
Now that you know what guaranteed life insurance is, you may be wondering if it’s a good fit for you. Guaranteed life insurance may be a great option for people who have high-risk health issues and would like coverage for end-of-life expenses. When deciding whether guaranteed life insurance is the right fit for you, it may be helpful to review the following pros and cons.
Pros
- Does not require submitting medical questions or completing a medical examination to qualify.
- Simple application process.
- It can cover final expenses.
- Applicants could receive approval instantly.
Cons
- The average premiums are high relative to the low coverage amount.
- Most insurance providers cap the death benefit at $25,000, which is typically enough to cover funeral expenses but not take care of loved ones. Additionally, death benefits are often subject to waiting periods.
- If you live in a nursing home or have been diagnosed with a terminal illness, you might not qualify for coverage.
- You generally have to be between the ages of 50 and 80 to purchase a new policy.
Who is guaranteed life insurance best for?
Guaranteed life isn’t the right choice for everyone, and there are many other types of policies, both term and permanent, that may be a better fit for individuals. In general, it’s a good idea to apply for a traditional policy before resorting to guaranteed issue since you can get more coverage without a waiting period. Having said that, here are some people who might benefit from a guaranteed issue policy:
- People with significant health risks
- People who have been denied coverage
- People who only want coverage for end-of-life expenses
People who may want to consider looking into a traditional life insurance policy:
- People under age 50
- People with no or few health risks
- People who need more than $25,000 in coverage
Guaranteed life insurance alternatives
Of course, guaranteed life insurance is not the only option for policy seekers with health complications that make them high-risk for term life insurance providers. The following policy types may also be worthwhile options to consider.
| Insurance policy type | Meaning |
| Universal life | This type of policy offers life-long coverage, as long as you pay your premium, but gives you the freedom to adjust the premium and coverage amounts to fit your budget and financial plans. As a form of permanent insurance, there is also a cash value that builds over time. |
| Final expense life | Final expense coverage is just what it sounds like: insurance designed to pay for medical, funeral and other end-of-life costs. It’s similar to guaranteed issue as you typically don’t need to take a medical exam or answer health questions. |
| Whole life | This type of permanent policy guarantees a death benefit as long as premiums are paid, up to a maximum coverage age of 95 to 121. It’s generally more expensive than term, but also features a cash value that can be borrowed against. |
| Term life | This simple type of policy covers you for a set term of years, usually between 10-30. Unlike permanent life insurance, there is no cash value. After the term concludes, the death benefit ends. |
What is the process of applying for guaranteed issue life insurance?
Typically, the process of applying for guaranteed issue life insurance is simple. Applicants will usually be asked several basic biographical questions like age, gender and state of residence. You will not be asked to go through a medical exam or answer health questions. Approval is often granted quickly.
Frequently asked questions
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The best life insurance company varies for everyone. First, you may want to speak to a licensed insurance agent about your specific needs. For instance, if you have health issues and have been turned down by traditional insurance, your agent may point you towards guaranteed issue life insurance. When you find out what type of coverage you are looking for, you may want to request quotes from the top insurance providers. Finally, you may want to look into factors such as customer service and mobile app experience. Together, these steps may help you find the best life insurance company for you.
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The answer to how much life insurance you need depends on various factors, like your age, income, amount of debt and future burial expenses. To estimate how much you need, you may want to start with an online calculator like Bankrate’s life insurance calculator. If you need help figuring out how much coverage you need, consider reaching out to a licensed life insurance agent or certified financial planner.
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Most insurance companies only sell guaranteed issue coverage to individuals between ages 50 to 80, although the exact age range might differ slightly.
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Although guaranteed issue life insurance is designed for older adults, usually those age 50 and above, some companies offer guaranteed life insurance under 50. Both State Farm and Mutual of Omaha, for example, only require you to be 45 to apply. Transamerica, meanwhile, has a policy called Transamerica FE Express Solutions that can be purchased by those between the ages of 18 to 85. Those up to age 75 can purchase up to $50,000 in coverage, while those ages 76 to 85 can buy a maximum of $25,000 in insurance coverage. Transamerica’s Final Expense Immediate Solution Policy is available to individuals between the ages of 0 to 85.
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