Guaranteed Issue Life Insurance | Definitive Guide For Dec 2023!

Finding out you didn't get approved for life insurance can be a huge bummer. 

But did you know: 

If every insurance company has turned you down, you can still get guaranteed issue life insurance. 

guaranteed issue life insurance

In this post today I will go over exactly how guaranteed issue life insurance works, and when you should or shouldn't buy it. 

It Goes By Many Names

Guaranteed issue life insurance goes by many names. You've probably heard of it before, even if you don't know it yet.

The following terms refer to the same type of insurance:

  • Guaranteed life insurance
  • Guaranteed acceptance life insurance
  • Guaranteed whole life insurance
  • Guaranteed issue funeral insurance
  • Guaranteed issue burial insurance
  • Guaranteed issue final expense life insurance
  • Guaranteed issue final expense insurance
  • No questions funeral insurance
  • No questions burial insurance
  • No questions final expense insurance

If you're considering purchasing guaranteed issue life insurance, you should know all the benefits and risks associated with it, as well as how they will affect you.

What is Guaranteed Issue Life Insurance?

Guaranteed acceptance life insurance might sound confusing, but the type of insurance is exactly what the name implies.

While most life insurance policies require you to fill out forms, provide information detailing your medical history, and have a medical exam, guaranteed life insurance does not.

Whether you have a pre-existing condition or a family history with a specific illness, it doesn't matter.

You don't have to go through a qualification process to figure out whether you'll get a policy, and no one will question your medical status.

When you sign up for guaranteed issue life insurance, you only need three things:

  • Policy availability in your state
  • Eligibility based on your age
  • The ability to legally sign documents and enter a legal agreement

Most insurance companies offer guaranteed policies for people age 45-85. However, if you're looking for guaranteed issue life insurance under age 40 or over 90, you'll be hard-pressed to find it.

Once you have it, however, you don't have to worry about it expiring or your monthly payments increasing. You also earn cash value over time, and your death benefit won't decrease.

The only exception when it comes to death benefits is that guaranteed issue life insurance policies have a waiting period.

Usually, it's two years, but some companies bump it up to three. These waiting periods mean that if you die during these first few years, your family won't receive the death benefit.

However, the company will issue the policy premium with interest.

The Truth About Guaranteed Life Insurance

While guaranteed issue life insurance works for some people, that's not the case with everyone.

If you're shopping for policies, you must understand the following information.

Most people should not buy a guaranteed issue life insurance policy.

If all you need is coverage for your family after your death, you probably qualify for a burial insurance policy. These types of plans cover the costs of your funeral or cremation services.

Burial insurance death benefits vary, but many of them cover you for at least $5,000 and up to $25,000. There are other advantages, too, even with the underwriting attached.

If you qualify—which you most likely will—you don't have the waiting period like you do with guaranteed acceptance life insurance. You'll also have lower monthly payments.

The underwriting with a burial insurance policy doesn't have the same stringent requirements as life insurance policies that make you undergo a medical exam.

The company will ask questions about your health and medical history, but it's not as in-depth as having a doctor’s visit.

You might even get more coverage with burial insurance as opposed to guaranteed life insurance.

These guaranteed policies don't usually allow you to purchase more than $25,000 worth of coverage.

Your family could get as little as $2,000 in death benefits, which may leave them in debt after your death.

There are plenty of insurance companies out there that will accept people who have different types of health problems.

It's almost more effective to shop around before you decide to go for guaranteed issue life insurance—you may get a better policy or price somewhere else.


Life insurance by state.

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When is a GI Policy a Good Buy?

Despite the drawbacks, a guaranteed issue life insurance policy is still a good buy for many people.

If you need life insurance and can't qualify for a plan with underwriting, guaranteed life insurance will at least give you some coverage and death benefits.

When you're choosing what type of life insurance to purchase, it's essential to consider which factors are most important to you.

Whether you want a low monthly premium or the convenience of bypassing a medical exam, consider why you want a guaranteed acceptance life insurance policy.

Most people choose guaranteed life insurance based on at least one of three things:

  • It's the only available option
  • It's cheaper than other options
  • It's quick and convenient

Whether these factors are enough for you to go with guaranteed issue life insurance depends on you and your situation.

Limited Options

When it comes to life insurance, most companies have restrictions on who they'll agree to insure.

For example, many insurance companies refuse to accept people with terminal illness or dementia. 

However, people with these illnesses may still need life insurance.

guaranteed acceptance life insurance

Certain health problems are considered "knockout" conditions when you're seeking life insurance.

No matter your previous medical history or the future prognosis, regular insurance companies will not accept you.

Some of these conditions include:

  • Alzheimer's or dementia
  • AIDS
  • Congestive heart failure
  • Dialysis
  • Stroke within the past two years
  • Undergoing cancer treatment
  • Had cancer within the past six months
  • Parkinson's Disease
  • Paralysis
  • Emphysema or COPD

While many more conditions fall under the knockout umbrella, most of them have something in common.

They're chronic conditions that are unlikely to improve over time, and for this reason, insurance companies don't want to risk insuring someone with those conditions. 

Therefore, when you have any of those types of illnesses, it's worth considering guaranteed acceptance life insurance.

Cheapest Option

When it comes to guaranteed issue life insurance for seniors, this may be your cheapest option.

That's not to say it's less expensive than other types of life insurance—it isn't.

However, it may be less costly in comparison to what other life insurance companies offer you with the health conditions you have.

A $25,000 guaranteed issue life insurance policy can cost anywhere from $85 to $160 per month, depending on your age.

However, if you have health problems or a chronic illness like diabetes, your premium with an underwritten life insurance policy goes up. 

That means you'll pay much more than the average amount—up to 150% more.

If a guaranteed acceptance policy your only option, the truth is that it's probably going to be the cheapest.


Sometimes it's not about whether or not you qualify for a life insurance policy with underwriting.

Even without health conditions and denials from insurance companies, guaranteed issue life insurance is more convenient.

Does that mean you'll get the best life insurance available? That’s not always the case.

However, if you don't want to deal with medical exams and health questions, you might prefer a guaranteed acceptance policy.

If you're choosing this type of plan for convenience and preference alone, it may be a better idea to explore more options.

You likely can get more coverage at a lower cost elsewhere.

When it's Not a Good Buy?

There is only two instances where guaranteed issue life insurance isn't a good buy.

If you qualify for a no exam life insurance policy or a traditional life insurance policy with underwriting, don't opt for a guaranteed acceptance one.

In most cases, guaranteed issue life insurance is more expensive than your underwritten life insurance policies, and you don't get as much coverage with them.

After all, these companies are absorbing a higher risk by accepting people with serious health conditions, which means they charge more from people who purchase them.

It's better to do some research or contact an insurance agent to see if you qualify for a policy with underwriting.

Even if you have health problems you think may not be eligible, there may be a company that will accept you, barring knockout conditions.

Best Guaranteed Issue Life Insurance Companies

Just like with life insurance with underwriting, some companies that offer guaranteed acceptance life insurance are better than others.

Don't jump at the first offer you see, or you might end up paying more. With the higher premiums associated with GI life insurance, you want to make sure you get the best coverage for the best price.

That's why we've put together a list of the top 5 best guaranteed issue life insurance companies, with pricing, so you know what's available to you.


AAA has an A+ rating with the Better Business Bureau. Having been in business since 1969, they have an excellent record with clients. You don't need a AAA membership to get their guaranteed acceptance life insurance, and they'll even waive the $60 annual policy fee.

  • Age: 45-85
  • Policy coverage amounts: $5,000 to $25,000
  • Waiting period: 2 years

Pricing for this policy varies based on your age, but here’s what you can expect from AAA:


Age 50: $33/mo for $5,000 to $98/mo for $20,000

Age 65: $38/mo for $5,000 to $129/mo for $20,000

Age 75: $56/mo for $5,000 to $206/mo for $20,000

Age 85: $80/mo for $5,000 to $280/mo for $20,000


Age 50: $26/mo for $5,000 to $73/mo for $20,000

Age 65: $30/mo for $5,000 to $99/mo for $20,000

Age 75: $51/mo for $5,000 to $175/mo for $20,000

Age 85: $70/mo for $5,000 to $207/mo for $20,000


AIG has an A+ rating with the Better Business Bureau, and they've been in business since 1919.

AIG also gives you a chronic illness rider and a terminal illness rider on your policy. These riders allow you to either have 50% of your premiums returned or accelerated based on your condition.

  • Age: 50-85
  • Policy coverage amounts: $5,000 to $25,000
  • Waiting period: 2 years

You can expect to see prices in these ranges for AIG guaranteed issue life insurance:


Age 50: $26.96/mo for $5,000 to $101.85/mo for $20,000

Age 65: $37.55/mo for $5,000 to $144.18/mo for $20,000

Age 75: $63.25/mo for $5,000 to $246.98/mo for $20,000

Age 85: $150.43/mo for $5,000 to $595.73/mo for $20,000


Age 50: $18.72/mo for $5,000 to $86.57/mo for $20,000

Age 65: $28.26/mo for $5,000 to $133.27/mo for $20,000

Age 75: $48.91/mo for $5,000 to $236.54/mo for $20,000

Age 85: $103.10/mo for $5,000 to $507.51/mo for $20,000

Gerber Life Insurance

Gerber Life Insurance comes in with an A+ rating from the Better Business Bureau.

After 43 years in business, they offer reasonable rates and conditions with their guaranteed issue life insurance.

  • Age: 50-80
  • Policy coverage amounts: $5,000 to $25,000
  • Waiting period: 2 years

You can expect to see prices like these when you get a policy with Gerber Life:


Age 50: $19.66/mo for $5,000 to $75.90/mo for $20,000

Age 65: $34.60/mo for $5,000 to $135.67/mo for $20,000

Age 75: $62.78/mo for $5,000 to $248.42/mo for $20,000

Age 80: $110.92/mo for $5,000 to $440.92/mo for $20,000


Age 50: $14.53/mo for $5,000 to $55.36/mo for $20,000

Age 65: $28.19/mo for $5,000 to $110/mo for $20,000

Age 75: $45.60/mo for $5,000 to $179.67/mo for $20,000

Age 80: $76.54/mo for $5,000 to $303.42/mo for $20,000

Mutual of Omaha

Mutual of Omaha has over 110 years in business and they're rated A+ by the Better Business Bureau, and they have some of the lowest guaranteed issue life insurance rates for seniors.

  • Age: 45-85
  • Policy coverage amounts: $2,000 to $25,000
  • Waiting period: 2 years

Your monthly rates with Mutual of Omaha will look something like these, based on your age and gender:


Age 50: $18.50/mo for $5,000 to $71/mo for $20,000

Age 65: $33.50/mo for $5,000 to $131/mo for $20,000

Age 75: $61/mo for $5,000 to $241/mo for $20,000

Age 85: $83.50/mo for $5,000 to $331/mo for $20,000


Age 50: $15.50/mo for $5,000 to $59/mo for $20,000

Age 65: $26/mo for $5,000 to $101/mo for $20,000

Age 75: $49.50/mo for $5,000 to $195/mo for $20,000

Age 85: $70.25/mo for $5,000 to $278/mo for $20,000

AARP New York Life

AARP New York Life is one of the oldest life insurance companies around.

They started business in 1845, and since then, they've achieved an A+ rating with the Better Business Bureau.

They have the lowest guaranteed issue life insurance prices for seniors on our list, too.

  • Age: 50-80
  • Policy coverage amounts: $5,000 to $25,000
  • Waiting period: 2 years

You can expect to see prices like these when you get a policy with Gerber Life:


Age 50: $23/mo for $5,000 to $88/mo for $20,000

Age 65: 36/mo for $5,000 to $140/mo for $20,000

Age 75: $51/mo for $5,000 to $201/mo for $20,000

Age 80: $54/mo for $5,000 to $210/mo for $20,000


Age 50: $20/mo for $5,000 to $74/mo for $20,000

Age 65: $32/mo for $5,000 to $124/mo for $20,000

Age 75: $47/mo for $5,000 to $182/mo for $20,000

Age 80: $49/mo for $5,000 to $191/mo for $20,000

Before You Buy a Guaranteed Issue Policy

Before you choose to buy, do your research and meet with an independent life insurance agency that works with several insurance companies or read online reviews when shopping online. 

This way you can find the best company to suit your needs and one that will accept your specific health situation.

Most people qualify for a traditional policy with underwriting, but in the rare event that you can't, you should always compare rates.

Check the companies we included in this post, or search for your own to see which one is the most affordable and gives you the best coverage.


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Taking Action

Guaranteed issue life insurance can be an excellent option for people who don't qualify for a traditional or no exam life insurance policy.

However, before you commit, you should always understand what it means to have a guaranteed acceptance policy and what you get with it.

If you need a guaranteed issue life policy, you can get immediate quotes and coverage by clicking here or on any of the above buttons.