Guaranteed Issue Life Insurance: A Lifeline for Those with Health Worries

Are you helping folks who need life insurance but face health hurdles that stop them from getting other plans? Do you want to guide them toward a coverage option that brings peace of mind and shields their loved ones financially? Interested in a policy type that skips medical exams and health queries? If you said yes, this blog post is for you. We’ll chat about the upsides and downsides of guaranteed issue life insurance, a type tailored for those with health concerns. Plus, we’ll share some tips on how to sell it to your clients without fuss.

What’s Guaranteed Issue Life Insurance?

Guaranteed issue life insurance, also known as guaranteed acceptance life insurance, is a type of lifelong insurance that doesn’t need medical checks. Anyone who hits the age requirement can get covered, no matter their health past. There’s no need for medical exams, health quizzes, or digging into medical files during the application.

This type of insurance is mainly for seniors or folks with severe illnesses who can’t get other life insurance. It usually covers final expenses like funeral costs, medical bills, or debts. The coverage amount is often low, ranging from $5,000 to $25,000, with higher premiums reflecting the higher risk for the insurer.

The Good Side of Guaranteed Issue Life Insurance

Guaranteed issue life insurance offers several perks for those with health worries:

  • Easy and Quick Application: Applying for this insurance is simple and speedy. Just provide basic details like your name, age, address, and beneficiary. No medical exams or health queries needed. Coverage can be sorted out within days, sometimes hours.
  • Guaranteed Coverage: As long as you meet the age requirement (usually between 50 and 80), you can’t be turned down for coverage. The insurance lasts a lifetime, provided you pay premiums on time.
  • Cash Value Growth: This type of insurance comes with a cash value part. The insurer invests a portion of your premium, which grows over time without tax. You can access this cash for various needs, like retirement or emergencies.
  • Graded Death Benefit: Instead of paying out the full death benefit right away, there’s a waiting period (usually two to three years). If you pass during this period, your beneficiary gets back a portion of the premiums plus interest. After the waiting time, they receive the full death benefit.

What Are the Downsides?

Guaranteed issue life insurance has some downsides to consider:

  • High Premiums: Premiums are often higher than other life insurances because of the higher risk. They’re based on your age and gender and stay fixed for the policy’s duration. This might be tough for some, especially those with low or fixed incomes.
  • Low Coverage Amount: The coverage amount is usually modest, which might not cover all final expenses or provide enough support for loved ones.
  • Waiting Period: There’s a waiting period before the full death benefit kicks in. If you pass during this time, your beneficiary gets a portion of the premiums plus interest. This waiting game might put off some people.

How to Sell Guaranteed Issue Life Insurance

Selling this type of insurance can be tricky, but it’s doable with these tips:

  • Know Your Audience: Target folks with health issues who can’t get other life insurance, like seniors or those with serious illnesses. Use referrals, leads, or marketing to reach them.
  • Educate Your Clients: Many might not know the ins and outs of this insurance. Explain its features, advantages, and drawbacks using clear, simple language. Offer written materials for them to review.
  • Address Concerns: Some clients might worry about high premiums, low coverage, or the waiting period. Address these concerns with facts and evidence. Use techniques like explaining features, advantages, and benefits.
  • Close the Deal: After educating your clients and addressing their worries, ask for the sale. Summarize the policy’s value and benefits and use trial and assumptive closes to seal the deal.


Guaranteed issue life insurance can be a saving grace for those with health worries who can’t get other life insurance. It offers peace of mind and financial protection without medical exams or health questions. But it’s not without its drawbacks, like high premiums and low coverage. As an insurance agent, you can help clients navigate these waters by following the tips in this blog post. Sell with honesty and transparency, and you’ll build trust and a satisfied client base.

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