Guaranteed issue life insurance (also called guaranteed acceptance life insurance) provides coverage regardless of your health history. It's a popular choice if you currently or previously have had medical issues such as cancer, or other health conditions that would normally make you uninsurable. With this type of life insurance, you don't need to undergo a medical exam, and no health questions will ever be asked.
How does it work?
Since guaranteed issue life insurance provides guaranteed coverage regardless of your health history, you won't ever have to answer any health related questions or be required to undergo a medical exam. You just have to be between 50 and 80 years old to qualify. However, since this type of insurance is more suited for those who are high-risk with medical issues, the premiums are typically 2 - 3 times higher than a traditional policy.
There is also a probation period for the first 2 years, where if you pass away during this period due to natural causes, the insurance company will only refund the premiums that you've already paid, plus 10% credited interest. This may not be the best outcome for some people, but if you have medical issues and you need life insurance, guaranteed issue life insurance may be the only option if you have already been declined coverage in the past.
- In some cases, same day issue is available depending on the product.