Guaranteed Issue Life Insurance

Guaranteed issue life insurance is a type of whole life insurance policy that allows you to skip health questions and or undergo a medical exam.¹ In some spaces, you may hear it referred to as guaranteed life insurance or guaranteed acceptance life insurance.

You can typically access this benefit in guaranteed whole life insurance plans.² However, at Aflac, you may be able to access this kind of benefit in a whole or term life insurance policy. policy. Guaranteed-issue option is available for the primary insured only.

For specific candidates, this can be particularly beneficial. Read on to discover if guaranteed issue life insurance with no health questions is the right choice for you.

How Does Guaranteed Issue Insurance Work?

Typically, guaranteed acceptance life insurance plans have some type of waiting period before the benefits go into effect. Guaranteed issue life insurance with no waiting period is extremely uncommon. Most of these policies fully function after 2 to 3 years.³

If the guaranteed life insurance policyholder were to pass before the waiting period was over, the beneficiary would not receive the death benefit. However, the insurance company might pay the beneficiary all the paid premiums back with interest.⁴

The guaranteed issue life insurance waiting periods are put in place to prevent end-of-life candidates from cashing into the death benefit too early. This would put a serious financial strain on most insurance companies.⁵

Usually, you need to fall within the age requirements to access this type of plan. This depends on the company you are working with, but it’s usually between 50 and 80 years old.⁶

The specific qualifications for guaranteed issue life insurance vary based on your age and location. At Aflac, you may be able to skip the medical exam depending on your unique circumstances. We recommend chatting with an agent to see if this option is available for you.

Pros and Cons of Guaranteed Acceptance Life Insurance

Here are some pros and cons of guaranteed issue life insurance:

Pros of Guaranteed Life Insurance

There are a handful of benefits attached to a guaranteed life insurance policy:

• These plans help provide coverage for those who may usually have a difficult time getting life insurance.
• You can save time by avoiding a trip to the doctor’s office – skipping the medical exam and medical questions.
• The policyholder can scale the death benefit up and down, usually somewhere between $2,000 and $25,000.⁷

Cons of Guaranteed Issue Life Insurance

On the other hand, there are a few disadvantages of guaranteed acceptance life insurance to watch out for:

• These plans are usually more expensive than typical term and whole life policies because they are considered riskier.⁸
• You can’t access the benefits of these plans immediately because there is often an initial waiting period.
• If the policyholder passes before the waiting period is over, the beneficiaries will not receive the death benefit.