Best Guaranteed Issue Life Insurance Policies

If you landed on this page, you are probably looking for the top guaranteed issue life insurance companies. With so many choices presented to consumers, how do you know which company will be best for you?

In this review, I will compare rates, benefits, and financial ratings for the top four guaranteed issue life insurance companies, and hope to clear any doubt you have regarding which company will be best for you.

Related: Top 20 final expense companies.

What Is Guaranteed Issue Life insurance Policy?

Guaranteed acceptance life insurance policies, as their name implies, are guaranteed coverage. When you pass away, these policies offer cash benefits to a beneficiary that you named in your policy. The insurance company will provide this plan to any applicant regardless of their history or present health conditions.

Life policies last for as long as you pay for them; there is no expiration or a period limit. Typically, you must be a policyholder for two to three years before you can collect the benefit. Guaranteed issue insurance caters to those who can’t get term life insurance anywhere else.

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Do You Need Guaranteed Issue Life insurance Policy?

Don’t fall for the “no health questions, no exam needed” catchphrase. Guaranteed issue insurance is for individuals between the ages of 50-85 (depending on the insurance company) who otherwise can’t qualify for a traditional life insurance policy due to medical issues. These policies are typically the only option or last resort they have left.

Read More: Types of Life Insurance

This isn’t for someone who is in perfect or decent health, who just doesn’t want to answer any health questions or take an exam. Keep in mind that the maximum death benefit is $40,000, and ALL guaranteed issue policies have graded benefit.

Graded benefit means that if you die in the first 2-3 years of the policy being issued (unless the death is a result of an accident), your beneficiaries will not get the death benefit you purchased, only the premium paid and some interest.

Who Should Consider Guaranteed Issue Life Insurance

Guaranteed acceptance life insurance is typically for individuals between 40 and 85 years old. It is often the last resort for those who can’t qualify for other kinds of life insurance policies due to their medical issues, and who don’t have the option to buy life insurance through their workplace.

Advantages

• They are a lot simpler to obtain than other types of life insurance policies. For people who typically wouldn’t qualify for term life insurance mainly because they have serious health problems, guaranteed acceptance life insurance is a decent option to consider.
• The approval process takes only a few days. There’s no requirement for a clinical exam, so your coverage goes in force faster than term life insurance. Plus, if you pay your premium every month, the policy will never expire.
• If you are elderly or otherwise very ill and have minimal to no savings that may be used for a funeral, guaranteed issue life insurance could provide you with adequate funds to pay for a funeral.

Disadvantages

• For starters, guaranteed issue life insurance is overpriced. It’s probably the most expensive life insurance product out there.
• You don’t get a lot for your premium. Guaranteed issue life insurance death benefits are minimal. Some policies can offer death benefits of $25,000. However, it’s more likely that a policy would provide between $5,000 and $10,000.
• Because of the higher premiums and the smaller amount of coverage, you could end up spending much more for your premiums compared to the death benefits your beneficiaries will receive. Plus, if you die soon after, your beneficiary will get only the payments paid and perhaps some interest, based on the company that issued the policy.

What to Expect When Buying Guaranteed Issue Life Insurance Policy

• Policy amount up to $40,000
• Must be 40–85 years old
• Approval is guaranteed, regardless of your health
• No health questions asked
• No exam needed
• Level premium (the premium will stay the same for life).
• Whole life policy, which means you will have cash value with the policy that you may borrow in the future
• Graded benefits between 2-3 years (depending on the company)
• If death is due to an accident, your beneficiaries will get the full death amount you purchased
• Policy death benefit is not subject to federal income tax when paid to your beneficiary
• 30-day free look period

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Our Top 4 Guaranteed Issue Life Insurance Companies

We recognize that there are more than four companies who offer guaranteed issue life insurance policies. The reason we chose the top four is that they provide the most competitive rates and have an above-average graded benefit clause when compared to other companies.

The companies are Vantis, AIG, Gerber, and Great Western. Let’s take a look at their products.

Vantis Life Guaranteed Issue Product Review

Vantis Life isn’t a company you hear about often. However, they have been around since 1942 and are based in Windsor, Connecticut. In 2016, they merged with The Penn Mutual Life Insurance Company, a Pennsylvania mutual life insurer since 1847 with A+ (Superior) ratings by A.M. Best.

Vantis Life has been serving middle-class Americans to safeguard their families for more than 75 years with an unwavering philosophy: creating a world of possibilities one individual, one family, and one small business at a time.

They provide easy and straightforward products that are easy to understand. Vantis Life has A- (Excellent) ratings by A.M. Best Company, a global credit rating agency in the insurance industry.

• Available in all states except New York
• Issue ages 50–80
• Face amount options: $5,000, $10,000, $15,000, or $20,000
• Graded death benefit for the first two years. If an applicant dies for any reason other than an accident, Vantis will pay the premium paid (with no added interest)

Vantis Life Guaranteed Issue Sample Monthly Rates

AIG Guaranteed Issue Product Review

AIG Life Insurance Company is one of the biggest life insurance companies in the world, with more than 88 million policyholders in 130 countries. AIG has been around since 1919 and has an A (excellent) rating according to A.M. Best.

It’s worth noting that the guaranteed issue product is sold by select brokers only, or directly through AIG. Which means, if you want to buy AIG, you either have to look for a broker who can sell their products or call AIG directly.

• Issue ages 50–85
• Face amount values are $5,000–$25,000
• Chronic illness rider is included at no extra cost. If you get sick with a qualifying chronic illness, you can access up to 50% of the death benefit amount
• Terminal illness rider is also included. If you have a life expectancy of 24 months or less, you can access 50% of your death benefit amount
• Riders aren’t available in all states
• Graded death benefit for the first two years. If an applicant dies for any reason other than an accident, AIG will pay the premium paid plus 10% interest

AIG Guaranteed Issue Sample Monthly Rates

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Gerber Guaranteed Issue Product Review

Gerber Life Insurance Company has been around since 1927 and has an A (excellent) rating, according to A.M. Best. Today, Gerber Life is licensed to sell life insurance throughout the United States, Canada, and Puerto Rico. Gerber has over $45 billion of life insurance products in force and over 3.3 million policies.

Here is another detailed review of Gerber Life.

• Must be a US citizen or permanent legal resident to apply
• Issue ages 50–80
• Face amount values are $5,0000–$25,000
• Graded death benefit for the first two years. If an applicant dies for any reason other than an accident, Gerber Life will pay the premium paid plus 10% interest

Gerber Guaranteed Issue Sample Monthly Rates

Great Western Guaranteed Issue Product Review

Great Western Life Insurance was established in Ogden, Utah in 1983. They specialize in final expense and pre-arrange plans through their life insurance and annuities product offerings. It was founded by John E. Lindquist, owner of Lindquist Mortuaries & Cemeteries, a family business of five generations.

His history and experience in the funeral industry gave him insights and ideas to create the simplest, easy-to-understand products individuals can relate to because he understands funeral homes, financial needs, and the families who depend on it.

Great Western is licensed in 46 states and continues to rank as one of the top pre-need insurers in the United States. According to A.M. Best, Great Western Life Insurance has a rating of B++ (Good). It’s worth noting that Great Western’s surplus-to-liability ratio is among the highest in the industry.

• Available in 46 states
• Issue ages 40–80
• Face amount: $1,000–$40,000 (highest in the industry)
• Graded death benefit for the first two years. If an applicant dies for any reason other than an accident, Great Western will pay the premium paid plus 10%
• Spousal bonus rider at no additional cost. Pays an additional $1,000 on the first death if both spouses apply at the same time
• Child rider at $1 per month provides $2,500 of coverage for a child or grandchild

Great Western Guaranteed Issue Sample Monthly Rates

How to Choose the Best Guaranteed Issue Life Insurance Company

1. You can start with comparing some rates from the top guaranteed issue life insurance companies. Take into consideration the face amount value and the age. For example, if you are 50 years old and only need $2500 in death benefits, you don’t have many options since only a few companies offer this amount. As for the age, if you are over 80 and are looking for life insurance, again, you may only find one company who caters to your specific situation.
2. Make sure that the company you choose is financially stable and has a good reputation for paying claims.
3. Make sure you understand the graded benefit clause each policy offers, and take this under consideration when weighing your options.
4. Before you make your final determination regarding a plan, use an insurance broker who may be able to shed some light and see if he/she can find a better plan. The reason I’m saying this is because plans change on a consistent basis, new products become available, and underwriting guidelines are constantly evolving. A broker’s job is to be informed and up-to-date, and you will benefit from their inside knowledge.
5. You may be better off using your savings (provided you have some), instead of buying a guaranteed issue policy. If your main concern is paying for your burial expenses, and you have at least $10,000 in savings, you may not need a life insurance policy after all. In insurance lingo, we call this “self-insured.”

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Case Studies: Best Guaranteed Issue Life Insurance Policies

Case Study 1: Vantis Life Guaranteed Issue Product Review

Mary, a 60-year-old with pre-existing health conditions, had difficulty securing traditional life insurance due to her medical history. As a last resort, she explored guaranteed issue life insurance options and came across Vantis Life. The company’s straightforward and easy-to-understand products appealed to her.

With Vantis Life’s A- (Excellent) rating from A.M. Best and competitive rates, Mary felt confident in her decision to purchase a guaranteed issue policy that would provide financial protection for her family.

Case Study 2: AIG Guaranteed Issue Product Review

Richard, a 70-year-old individual, was looking for life insurance coverage without undergoing a medical exam or answering health questions. He discovered AIG’s guaranteed issue life insurance product, one of the largest insurance companies globally with an A (Excellent) rating from A.M. Best.

Although the policy was sold through select brokers or directly through AIG, Richard found a reputable broker to assist him. The policy’s benefits and AIG’s strong financial standing reassured Richard that he made the right choice to secure his family’s future.

Case Study 3: Gerber Guaranteed Issue Product Review

Emily, a 75-year-old seeking life insurance with guaranteed acceptance, researched various insurance companies and found Gerber Life Insurance Company. The company, with an A (Excellent) rating from A.M. Best and over 3.3 million policies in force, offered a reliable option for Emily.

The graded benefit provision, common in guaranteed issue policies, didn’t deter her, knowing that the policy would provide some financial support to her beneficiaries even during the first few years.

Bottom Line

So here are our top four guaranteed issue life insurance companies. Guaranteed issue policy should never be your first choice when buying coverage. The graded benefit provision for the first two years isn’t ideal and could put your family in jeopardy. You want to use this option as the last resort after weighing other alternatives.

Lastly, don’t assume that your health condition is impossible to insure. Being denied by one company doesn’t mean they all will do the same. Underwriting differs from one company to another.

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